Mobility Research Center & Vehicle Proving Grounds
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MOBILITY RESEARCH CENTER & VEHICLE PROVING GROUNDS DEVELOPMENT STUDY PUBLIC INTERNAL CONFIDENTIAL SECRET PUBLIC INTERNAL CONFIDENTIAL SECRET PUBLIC INTERNAL CONFIDENTIAL SECRET PUBLIC INTERNAL CONFIDENTIAL SECRET PUBLIC INTERNAL CONFIDENTIAL SECRET Development Study – After Completion > August 2019 - Analyze / Digest Deliverables - TnECD Review - Develop Governance - Ownership Model / Partnerships > September / October / Nov / Dec 2019 - Governor / Lt Gov / Legislative Leadership Review - TDOT Review > January / May 2020 - Legislative Review Process > July 2020 - Funding Available - Bid Pack Development etc PUBLIC INTERNAL CONFIDENTIAL SECRET PUBLIC INTERNAL CONFIDENTIAL SECRET PUBLIC INTERNAL CONFIDENTIAL SECRET Scope of Works 1. Market Study 2. Design • 1.1 Benchmarking • 2.2 Concept Design • 1.2 Location Analysis 3. Financial Analysis • 1.3 Test Requirements in USA • 3.1 Cost Estimations • 1.4 Market Research (Identify potential users) • 3.2 Business Plan 2. Design • 3.3 Economic Impact in the region • 2.1 Master Plans 4. Business models • 2.2 Concept Design (partially done) 5. Risk Analysis 6. Implementation Plan Done Done PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities – Proving Grounds Benchmarking IDIADA is BoD member of International Committee for Proving Ground Safety (ICPGS) based in US. Direct Access to PGs in US ( Facilities status & condition / users ) PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities – Proving Grounds Benchmarking Continent Company Country/Estate Owner Type Transportation Research Center TRC USA, OHIO Honda MULTI-USER Nevada Automotive Test Centre USA, NEVADA MULTI-USER FT Techno of America USA, MICHIGAN FT Techno, Toyota MULTI-USER PMG CANADA PMG Technologies MULTI-USER Aberdeen Proving Ground USA, MAINE Public MULT-USER Larson Larson Transportation USA, Transportation Institute PENNSYLVANIA Institute MULTI-USER Keweenaw Research Center USA, Michigan Michigan Tech MULTI-USER Michigan Technical Resource Park USA, Michigan Smith Winter Test USA, Michigan Smithers Rapra COMPONENT Dearborn Development Center USA, Michigan Ford VEHICLE MANUFACTURER Ford Proving Ground Romeo USA, Michigan Ford VEHICLE MANUFACTURER Florida Evaluation Center USA, Florida Ford VEHICLE MANUFACTURER Navistar PG USA, Indiana Navistar VEHICLE MANUFACTURER TAPG USA, Arizona Toyota VEHICLE MANUFACTURER GM MESA USA, Arizona GM closed VW Arizona PG USA, Arizona VW VEHICLE MANUFACTURER AMERICA Ford Arizona PG USA, Arizona Ford VEHICLE MANUFACTURER GM Mildford USA, Michigan GM VEHICLE MANUFACTURER GM Yuma USA, Arizona GM VEHICLE MANUFACTURER Chrysler Chelsea USA, Michigan FCA VEHICLE MANUFACTURER Nissan Arizona USA, Arizona Nissan VEHICLE MANUFACTURER Honda PG Center of California USA, California Honda America VEHICLE MANUFACTURER Chrysler Yucca USA, Arizona FCA VEHICLE MANUFACTURER Hyundai California PG USA, California Hyundai VEHICLE MANUFACTURER Continental Uvalde USA, Texas Continental COMPONENT Brimley Continental Center USA, Michigan Continental COMPONENT Bosch Flat Rock USA, Michigan Bosch COMPONENT Goodyear PG San Angelo USA, Texas Goodyear COMPONENT Goodyear PG Akron USA, Ohio Goodyear COMPONENT Bridgetone/Firestone PG USA, Texas Bridgestone COMPONENT Eaton PG USA, Michigan Eaton COMPONENT USA, South Michelin Laurens PG Caroline Michelin COMPONENT PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities – Market Research Customer Discovery Meetings / Interviews / Questionaires IDIADA Customers OEMs, Tier Suppliers & Stakeholders Over 100 Entities ( w/NDA ) SAE Congress 2019 ( April ) in Detroit TennSMART 2019 ( April ) in Nashville PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities - Concept Design Customer Discovery … Facilities Required T1. HIGHWAY / HIGH SPEED OVAL F1. WELCOME CENTER T2. EXTERNAL NOISE TESTTRACK F2. PARKING AREA T3. DYNAMIC PLATFORM F3. MAIN BUILDING T4. BRAKING TRACK F4. CONTROL TOWER / CENTER T5. DRY HANDLING TRACK F5. WORKSHOPS/ GARAGES T6. WET HANDLING TRACK F6. FUELING STATION T7. WET SKID PAD F7. MAINTENANCE SERVICES T8. FATIGUE AND DURABILITY TRACK F8. TECHNO PARK ( LABS, OFFICES ) T9. CAV PERFORMANCE TRACK F9. LOGISTICS / RECEIVING T10. CAV PLATFORM T11. CAV URBAN AREA 11. ACCESS ROAD T12. TEST HILLS 12. BELTWAYROAD T13. FOREST TRACK T14. PERFORMANCE DOWNTRACK PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities – Site Analysis (8) Site Options Analysed (6) Site Visits ( April 2019 ) Data Collection of existing infrastructure, facilities, utilities, enviromental, constraints, soil and topograghy conditions . PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities – Site Analysis LOCATION Dimensions & Shape Land Aquisition ….. Timing & Cost Land Topography Utilities & Communications / Access / Environmental Optimization / Rearrangement of Existing Facilities PUBLIC INTERNAL CONFIDENTIAL SECRET Conclusions Market Reseach – Site Analysis: Most Suitable sites : Lawrenceburg North Loop Main Strength: Site Dimensions and Shape, To be considered: Utilities / 5G / Road Access Arnold Air Force Base – UT Space Institute - Tullahoma Main Strength: Proximity to Nashville / Interstate 24 / GIG City Culture of Academics, Testing, Evaluation & Certification To be considered: Land Transfer / Extended Use Lease / Road Access PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities - Concept Design- Master Plan 1. Lawrenceburg North Loop PUBLIC INTERNAL CONFIDENTIAL SECRET Project Activities - Concept Design - Master Plan 4. UT Space Institute - Tullahoma PUBLIC INTERNAL CONFIDENTIAL SECRET Conclusions Based on Customer Discovery … Market Reseach – Threats and Risks Other PG initiatives progress ( California, Indiana, etc ) …. Existing PGs remodelled both physically and management structure The 10 designated sites from US DOT Grant could present develop projects The TN RC&PG Project REQUIRES ‘Quick to Market’ implementation ‘ If TN does not …. Someone else will ‘ PUBLIC INTERNAL CONFIDENTIAL SECRET Conclusions Market Reseach – Strengths and Opportunities: Many Proving Grounds in the USA, but Private / Government TRC (Ohio), NHTSA base, is considered one of the most independent … but currently has major maintenance issues. NO Comprehensive, State of the Art & Independent PG facilities in the US. Important OEM without PG has immediate need for “something similar to IDIADA in the USA” . PUBLIC INTERNAL CONFIDENTIAL SECRET Conclusions Market Reseach – Strengths and Opportunities: TN Weather is FAVORABLE for Year Round Operation Nashville is considered ‘COOL’ for Business Travel Tire Testing and CAV State-of-the-Art Facilities MOST Requested & Required NOW CAV REQUIRES New Testing Protocols / Facilities PUBLIC INTERNAL CONFIDENTIAL SECRET Conclusions Market Reseach – Strengths and Opportunities: Academic Leadership is an ABSOLUTE Requirement Time Difference allows continued work day Tire Manufacturing Industry Location Domestic, Asian & European OEMs Location PUBLIC INTERNAL CONFIDENTIAL SECRET Financial Analysis Construction cost estimation: Lawrenceburg – North Loop PUBLIC INTERNAL CONFIDENTIAL SECRET Financial Analysis Construction cost estimation: UT Space Institute - Tullahoma PUBLIC INTERNAL CONFIDENTIAL SECRET Financial Analysis - Conservative ➢ Operational Breakeven + 8 yrs ➢ Cashflow + 5 yrs ➢ EBITDA + 5 yrs ➢ DCF + 5 yrs EBITDA OPERATIONAL BREAK EVEN $1 $45.000.000 $1 $40.000.000 $0 $35.000.000 $0 $30.000.000 $0 $25.000.000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 $0 $20.000.000 $0 $15.000.000 -$1 $10.000.000 $5.000.000 -$1 $0 -$1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -$5.000.000 -$1 EX`PENSES EBITDA -$1 CASH FLOW DISCOUNTED CASH FLOW $40.000.000 $10.000.000 $5.000.000 $30.000.000 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 $20.000.000 -$5.000.000 -$10.000.000 $10.000.000 -$15.000.000 $0 -$20.000.000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -$25.000.000 -$10.000.000 -$30.000.000 -$20.000.000 -$35.000.000 -$40.000.000 -$30.000.000 -$45.000.000 -$40.000.000 -$50.000.000 PUBLIC INTERNAL CONFIDENTIAL SECRET Financial Analysis Economic Impact : Operating Expenditures USD $ PURCHASES 2010 2018 Purchases ALBORNAR HQ 7,479,657 27,897,412 External Services ALBORNAR HQ 14,781,419 40,393,941 Percentage in the the same county 39.8% 33% $68 Mill Purchases acquired in the same county 3,363,901 9,206,146 External services acquired in the same county 6,647,796 13,330,000 Total budget within the same county 10,011,696 22,536,146 Sales tax purchases 9.50% 9.50% Sales tax purchases 319,571 874,584 PUBLIC INTERNAL CONFIDENTIAL SECRET Financial Analysis Economic Impact : Proving Ground – Hotel Nights HOTEL NIGHTS DIRECT IMPACT HOTEL NIGHTS TOTAL MANAGED BY EXPENSES $/DAY SALES TAX TN AMOUNT/YEAR YEAR OPERATOR 110 9.5% 2005 25200 $ 2,772,000 $ 263,340 $ 3,035,340 2010 36700 $ 4,037,000 $ 383,515 $ 4,420,515 2015 53400 $ 5,874,000 $ 558,030 $ 6,432,030 2018 59000 $ 6,490,000 $ 616,550 $ 7,106,550 2019 Forecast = 64,000 PUBLIC INTERNAL CONFIDENTIAL SECRET Financial Analysis Economic Impact : Summary of Jobs YEAR ESTIMATION SUMMARY JOBS 1 5 10 15 20 25 Proving Ground Operation 5 58 78 85 94 104 Construction works 200 25 25 25 25 25 PG Customer permanent teams 0 50 100 200 400 500 Engineering and testing 0 250 500 1000 2000 2500 External services 1 35 70 125 249 350 Indirects 21 42 77 144 277 348 TOTAL 226 460 850 1579 3045 3827 PUBLIC INTERNAL CONFIDENTIAL SECRET Implementation Planning - Timeline 2019 2020 2021 2022 2023 2024 PHASE ID DESCRIPTION 0