PUBLIC INTERNAL CONFIDENTIAL SECRET
MOBILITY RESEARCH CENTER
& VEHICLE PROVING GROUNDS
DEVELOPMENT STUDY
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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
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Scope of Works
1. Market Study
• 1.1 Benchmarking
• 1.2 Location Analysis
• 1.3 Test Requirements in USA
• 1.4 Market Research (Identify potential users)
2. Design
• 2.1 Master Plans
• 2.2 Concept Design (partially done)
2. Design
• 2.2 Concept Design
3. Financial Analysis
• 3.1 Cost Estimations
• 3.2 Business Plan
• 3.3 Economic Impact in the region
4. Business models
5. Risk Analysis
6. Implementation Plan
Done Done
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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 )
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Project Activities – Proving Grounds Benchmarking
Continent Company Country/Estate Owner Type
AMERICA
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 Transportation Institute
USA, PENNSYLVANIA
Larson Transportation
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
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
Michelin Laurens PG USA, South
Caroline Michelin COMPONENT
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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
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Project Activities - Concept Design
Customer Discovery … Facilities Required
T1. HIGHWAY / HIGH SPEED OVAL
T2. EXTERNALNOISE TESTTRACKT3. DYNAMIC PLATFORMT4. BRAKING TRACK
T5. DRY HANDLING TRACKT6. WET HANDLING TRACK
T7. WET SKID PADT8. FATIGUE AND DURABILITYTRACKT9. CAV PERFORMANCE TRACK
T10. CAV PLATFORMT11. CAV URBAN AREA
T12. TEST HILLST13. FOREST TRACKT14. PERFORMANCE DOWNTRACK
F1. WELCOME CENTER
F2. PARKING AREAF3. MAIN BUILDINGF4. CONTROLTOWER / CENTER
F5. WORKSHOPS/ GARAGESF6. FUELING STATION
F7. MAINTENANCE SERVICESF8. TECHNO PARK ( LABS, OFFICES )F9. LOGISTICS / RECEIVING
11. ACCESS ROAD
12. BELTWAYROAD
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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 .
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Project Activities – Site Analysis
LOCATION
Dimensions & Shape
Land Aquisition ….. Timing & Cost
Land Topography
Utilities & Communications / Access / Environmental
Optimization / Rearrangement of Existing Facilities
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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
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Project Activities - Concept Design- Master Plan
1. Lawrenceburg North Loop
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Project Activities - Concept Design - Master Plan
4. UT Space Institute - Tullahoma
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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 ‘
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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” .
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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
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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
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Financial Analysis
Construction cost estimation: Lawrenceburg – North Loop
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Financial Analysis
Construction cost estimation: UT Space Institute - Tullahoma
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Financial Analysis - Conservative
➢ Operational Breakeven + 8 yrs
➢ Cashflow + 5 yrs
➢ EBITDA + 5 yrs
➢ DCF + 5 yrs
-$5.000.000
$0
$5.000.000
$10.000.000
$15.000.000
$20.000.000
$25.000.000
$30.000.000
$35.000.000
$40.000.000
$45.000.000
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
OPERATIONAL BREAK EVEN
EX`PENSES EBITDA
-$50.000.000
-$40.000.000
-$30.000.000
-$20.000.000
-$10.000.000
$0
$10.000.000
$20.000.000
$30.000.000
$40.000.000
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
CASH FLOW
-$1
-$1
-$1
-$1
-$1
$0
$0
$0
$0
$0
$1
$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
EBITDA
-$45.000.000
-$40.000.000
-$35.000.000
-$30.000.000
-$25.000.000
-$20.000.000
-$15.000.000
-$10.000.000
-$5.000.000
$0
$5.000.000
$10.000.000
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
DISCOUNTED CASH FLOW
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Financial Analysis
Economic Impact :
Operating Expenditures
PURCHASES USD $
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%
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
$68 Mill
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Financial Analysis
Economic Impact :
Proving Ground – Hotel Nights
HOTEL NIGHTS DIRECT IMPACT
YEAR
HOTEL NIGHTS MANAGED BY
OPERATOR
EXPENSES $/DAY SALES TAX TN
TOTAL
AMOUNT/YEAR 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
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Financial Analysis
Economic Impact :
Summary of Jobs
ESTIMATION SUMMARY JOBS YEAR
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
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Implementation Planning - Timeline
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Feasibility study
Site selection
Secure funds
Geotechnical and topographical surveys
Engineering Project
Due diligence
Option Execution process
Land preparation
Construction phase 1
T1 Highway track
T2 External noise
T3 Dynamic platform
T4 Braking
T5 Dry handling
T6 Wet handling
T9 CAV Perfromance track
I12 Access road
WS Workshops
F1 Welcome Center
F2 Parking Area
F3 Main Building
F4 Control Tower
F6 Energy Station
F7 Maintenance Services
F8.1 Techno park offices
F8.2 Techno park warehouse
F10 Goods Reception & Logistics
F11 General Urbanization & Services
Construction phase 2
T10 CAV Platform
T13 Forest Track
T14 Performance down track
T8 Fatigue and durability track
I13 Belt road
WS Workshops
F8.1 Techno park offices
F8.2 Techno park warehouse
Construction phase 3
T11 CAV Urban area
T12 Test Hills
WS Workshops
F8.1 Techno park offices
F8.2 Techno park warehouse
F8.3 Techno park laboratory
Laboratories
Testing Equipment
New Services
4
2020 2021 2022 2023 2024
2
3
2 51 3 4
0
PHASE ID DESCRIPTION
1
0
2019
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TO CONCLUDE :
✓ Checks ALL the Boxes
✓ RURAL Economic Development
✓ Workforce Development / Academic Growth
✓ Elevates the Tennessee Automotive / Intelligent Mobility Landscape
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Thank you for your kind attention
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Take Aways – Quick Summary – ‘Rural Economic Development’
Financial Ask - $167,500,00 over (10) Year Period
Project $125M/ Project Contingency $12.5M/ Years 5-10 $30M ( 6yr x $5M)
By Year 1-10 ( $44 / $44 / $33 / $17.5 / $5 / $5 / $5 / $5 / $5 / $5 )( $Millions )
Jobs Created
Yr 5 - 460 / Yr 10 – 850 / Yr 15 – 1579 / Yr 20 – 3045
Payroll
Yr 5 - $28M / Yr 10 - $64M / Yr 15 - $126M / Yr 20 - $260M
Average Annual Sales Tax - Regional Economic Impact
Goods / Services / Hotel Nights
Annual Avg Expenditure Amount $50M x .095 = $4,750,000 SalesTax Revenue
Financials
EBITDA + Yr5 / EBIT + Yr8 / Cash Flow + Yr5 / Disc Cash Flow + Yr5
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Project Activities – Site Analysis
Lawrence County
2. Airport South1. North Loop 3. West
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Project Activities – Site Analysis
5. Nashville Super Speedway4. UT Space Institute - Tullahoma 6. Rutherford County
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Risk Analysis
THREATS
Competitors
Estimated Revenues
Making the Required Decisions
Talent Availability - Engineers
OPPORTUNITIES
Existing Infrastructures in TN
Fed/State/Local Government Support
Rapid Technological Changes