Business / economic benefits
In addition to the environmental and social benefits outlined above, the MFR concept has multiple potential economic and business benefits. These are important because it is necessary for the alternative (more sustainable) forms of automobility to be also economically viable. The MFR concept provides a defensible means of market entry and a trajectory for market penetration despite the overwhelming presence of the existing major vehicle manufacturers and their distribution and sales networks. The main benefits are:
Capital costs in factories and new models that are 10% of the existing industry, or even less once cloning of Micro Factory Retail units is underway;
Profitability in terms of return on capital employed and as a proportion of turnover would be much greater than the current industry;
Incremental investment strategies are possible because each MFR unit is small, thereby reducing risk, reducing capital needs, and increasing cash-flow incrementally relative to investment;
Large, dedicated premium sites are not required, as is the case with traditional car plants;
Wealth is generated within localities, helping to increase local economic independence and prosperity;
The reduced dependence upon new car assembly and sale, with what amounts to a circular value creation and capture system whereby cars are constantly returned for maintenance and eventual remanufacture, reduces the pressure to over-produce and over-supply;
Customers therefore enjoy greater value for money with reduced asset depreciation, the largest single cost for traditional automobility;
The concept can be franchised with local territories as a means of rapid, low-cost geographic market penetration
