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Quantum Fuel Systems Technologies Worldwide Inc. Message Board

  • FC_analyst FC_analyst Jan 25, 2005 3:15 PM Flag

    But there was SOME news value

    The news that QTWW would continue supplying equipment for GM's CNG pickups was of little interest to me, but there were comments in the PR that I found useful.

    In particular, this: "Quantum will also ...provide the specialty vehicle assembly of the fuel systems into the new trucks."

    IMO, this supports my belief/hunch/guess that the QTWW-STCR merger is driven by GM's interests.

    These low-volume special-order vehicle programs are a pain in the rear that GM will probably be glad to outsource to somebody else--in particular, to somebody else that GM can kkeep a close watch on.

    GM's FC vehicles also will be low-volume headaches that GM may be interested in outsourcing, so it is justifiable for QTWW fans to anticipate that the STCR merger will enhance future revenues from GM. Big questions that come to mind at this point include:

    To what degree will the enhanced revenues overcome the merger-related share dilution?

    Will the business provide decent margins?

    At what point might GM decide that volumes are large enought that assembly should be brought back in-house?

    The above questions are on top of any questions about the timing and growth of FC vehicle programs, of course.


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