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Demonstration of a Binary-Logic Hybrid Transmission for Heavy-Duty Vehicles

Periodic Reporting for period 1 - SWH (Demonstration of a Binary-Logic Hybrid Transmission for Heavy-Duty Vehicles)

Reporting period: 2014-10-01 to 2015-03-31

This report describes the results of the feasibility study for the commercialisation of the SWH hybrid binary logic transmission for wheeled vehicles.
The feasibility study has been carried out in a working group formed by the consultancy and the company:

+ By the consultancy BANTEC GROUP, the members of the team have been:
- Senior consultant
- Senior consultant

+ By the technology and product owner SAPA OPERACIONES, the members of the team have been:

-General and marketing manager
-Industrial manager, R&D manager
-Programs manager
-Operations manager
-Quality manager
-Financial manager


Five face-to-face meetings have been carried out with specific themes:

1. Feasibility study launch – October 2014
2. Market – November 2014
3. Business models and value proposal – January 2015
4. Forecasts and actuation plan – February 2015
5. Results validation – March 2015
Feasibility study process and results are summarized in the following points:

1. Priority market segments have been identified taking into account the requirements of the applications and the features of the SWH. According to the results of the analysis, most interesting market segments for SWH are:
- City buses
- Special purpose trucks
- Off-road trucks
- Self-loaders
- High power tractors

2. Priority market segments structure has been analysed.

3. SWH technological advantages have been analysed for each priority segment and market segment targets have been identified. According to the results of the analysis, target market segments for SWH have been identified.

4. Energy efficiency and emissions regulations have been analysed in different geographical markets. According to the results of the analysis, priority geographical markets for SWH have been identified.

5. Market segment targets have been analysed.

6. Main market transmission manufacturers business characteristics have been analysed.

7. Potential business model have been determined. According to the results of the analysis, potential business model have been identified.

8. SWH proposal value has been analysed taking into account efficiency improvements scenarios for each market segment target and the maximum prices for each geographical market target.

9. A business forecast analysis has been carried out. Sales scenario has been established according to a similar technology market introduction model. Additionally investment cost for production needs have been determined. Finally, 13-year business forecast has been determined.

10. An action plan has been established for dealing the market introduction of the SWH, based on three areas:
- Pilot project in reference vehicles
- Capability development
- Organisation development
Based on the feasibility study carried out, the business feasibility can be ensured taking into account the following key aspects:

• High value-added market segments to benefit from high technology of the SWH transmission.

• Knowledge patent protection.

• Partnership to achieve economy of scale and standardization.

• Production in the United States for the off-road truck US and Canada market.

• Final client oriented sales force and marketing.

• Service network with a partner must be created and trained.
SWH Transmission