Regi U S Inc's Comment on Competitors and Industry Peers
We currently face and will continue to face competition in the future from established
companies engaged in the business of developing, manufacturing and marketing engines
and other products. While not a highly competitive business in terms of numbers
of competitors, the business of developing engines of a new design and attempting
to either license or produce them is nonetheless difficult because most existing
engine producers are large, well financed companies which are very concerned about
maintaining their market position. Such competitors are already well established
in the market and have substantially greater resources than us. Internal combustion
engines are produced by automobile manufacturers, marine engine manufacturers,
heavy equipment manufacturers and specialty aircraft and industrial engine manufacturers.
We expect that our engine would be used mainly in industrial and marine applications.
Except for the Wankel rotary engine built by Mazda of Japan, no competitor, that
we are aware of, presently produces in a commercial quantity any rotary engine
similar to the engines we are developing. The Wankel rotary engine is similar
only in that it is a rotary engine rather than a reciprocating piston engine.
Without substantially greater financial resources than is currently available
to us, however, it is very possible that it may not be able to adequately compete
in the engine business. One competitor, Rotary Power International, is presently
producing the first production SCORE rotary (Wankel type) engines. Our RadMax™
Diesel Engine is more fuel efficient, smaller, quieter, costs less to produce
and will have fewer exhaust emissions.
We believe that if and when our engine is completely developed, in order to be
successful in meeting or overcoming competition which currently exists or may
develop in the future, our engine will need to offer superior performance and/or
cost advantages over existing engines used in various applications.
We believe strong competition can be expected in the engine market with new patents
being taken out on a continuous basis and that we may have a time advantage over
some of the competitive products as far as niche markets which we may enter, however
there is no way to accurately determine or predict whether this situation is or
will continue to be true.
The conventional piston type internal combustion engine is the prime competitor
of the RadMax™ Diesel Engine. Due to the substantial infrastructure built
up to support the standard combustion engine, substantial barriers to entry exist
into this market.
A number of the new engine designs over the last decade have offered advantages
on the thermodynamics front (e.g. more efficient use of energy through better
combustion, better heat transfer, etc.). In the case of the RadMax™ Diesel
Engine, its strong point it believed to be in its mechanism, not in its thermodynamics.
Whether or not the engine’s mechanism alone will provide the competitive
edge necessary to result in a marketable and successful product is unknown at
Since we do not have management experience in manufacturing engines, we hope to
be able to follow the same strategy as that of other companies such as Orbital
and Wankel, where it would be licensing its technology and would therefore not
be directly engaged in manufacturing.
An extensive manufacturing study has not been performed to date and it could turn
out that the costs to manufacture are prohibitive for one or more reasons. However,
the computer modeling done can be utilized to generate manufacturing drawings
which could be used to obtain preliminary costing estimates.
The development of our business and its ability to maintain its competitive and
technical position has depended and will depend, in part, upon its ability to
attract and retain qualified scientific, engineering, managerial and manufacturing
Significant competition exists from engine manufacturers and engineering firms
specializing in the development of internal combustion engines technology for
the automotive, marine, motorcycle and small engine industry. Such competition
also exists in the pump and compressor markets which may utilize the Rand Cam
technology in their products. Many of these companies have substantially greater
resources for research, development and manufacturing than us. It is possible
that our competitors may succeed in developing technologies and products that
are more effective or commercially acceptable. We believe, based on its testing
of the RadMax™ Diesel Engine that the engine is a superior overall engine
package to the reciprocating piston engine. This assessment is made on the basis
of the RadMax™ Diesel Engine’s potential for reduced engine weight
and packaging volume, improved performance, and possibly lower manufacturing costs.
Technology development is taking place on many fronts and competitors may have,
unknown to us, a product or products under development which may be technologically
superior to ours which may be more acceptable to the market. Competition with
engines employing Rand Cam technology may also include other lean burn engines,
electric motors, gas turbine engines, solar power and hybrid vehicles, and may
include concepts not yet known to us.
<< See the full list of RGUS competitors
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