2014 FSAE BUSINESS LOGIC CASE

Institution/Team Identification: University of Glasgow/UGRacing

Analysis of Market Data
A cost of $13,000/unit has been projected for the production of each vehicle, translating to production
volume 125 units at a selling price of $24,000/unit.
There is a wide market in the UK for single seat racing vehicles; the UKs governing motorsport body,
the Motor Sport Association (MSA), currently has over 34,000 licence holders, as well as several
thousand volunteers, and hosts 5,000 events every year. Beyond this, the FIA (governing
international motor sport body) has 60 million members around the world, demonstrating the global
demand within this market.
Company Strategy
Based on the current market, the following strategy was employed:
Minimising cost, whilst maintaining performance targets, to maximise profitability and remain
competitive in the market.
Remaining customer-focused, by producing an innovative yet reliable vehicle, that will appeal
equally to consumers and investors whilst ensuring profitability.

Target Selling Price

Target Vehicle Production Cost
Target Production Volume (from Table 1)
Target Annual Profit

$24,000
13,000
125
$1,375,000

Vehicle Strategy & Performance

Employing a large engine and large wheels, the aim for the vehicle is to maximise the power/weight
ratio to achieve the maximum top speed. Predicted acceleration is in line with competitors (i.e. nonaero, 4 cylinder engine vehicles) within the top 25% of the competition.
In order to appeal to the target market (weekend racers), it was important that the vehicle be reliable
in terms of performance and quality and have minimal repair costs. The use of pre-manufactured
components can be very useful here as it ensures that anything which might need replaced is readily
available at minimal cost to the consumer.
Fuel economy and environmental impact are becoming increasingly important to consumers when
selecting a vehicle; the Honda CBR 600 addresses this with an acceptable fuel economy of 0.5l/km
and a low pollution level (120g/km CO2).
Plans for Efficient Design (and Manufacture)
In order to ensure an efficient design and manufacturing process, tight deadlines were set for design,
with a sufficient contingency period to allow for missed deadlines and delays in orders. A decision to
keep the design of components as simple as possible, as well as using a number of off-the-shelf
components was made to minimise manufacturing time and cost.

Key Design Features

Chassis/Body Type Steel tubular space frame
Power train type

IC engine

Power / engine

75HP/Honda CBR 600

Target weight, kg

200

Key Performance Targets

Accn. 0-75 Metres
3.7
1.53g (skidpad time
Lateral Accn, (g)
5.0s)
0.07l/km
Fuel Economy
140g/km CO2