FAQ #131
Cost Report - Prototype Assumption

Last Updated On 12/03/2013 09:15 PM by

feelingmoody

Question
In the Rules Section A1.2 there is this statement:

"The vehicle is to be a prototype for a reliable, maintainable, ergonomic, and economic production vehicle which serves a recreational user market, sized at approximately 4000 units per year."

Does this mean that we can get quotes for all of our parts based on a production volume of 4000 units?  Or can we use manufacturing methods as if we were building 4000 units even if we didn't use that particular method for the prototype?
Answer
Article C.4 (specifically: Cost Event, C4.1) describes the Cost Event (to include the Cost Report) as surrounding the cost of the prototype vehicle, and not the potential cost of the production vehicle. As a result, you must use the cost report to indicate the retail purchasing & manufacturing methods used to produce the prototype vehicle.



Please review the entirety of Article C.4 to understand the requirements for the Cost Event and the Cost Report.

Article C.5 details the Sales Presentation, which does require the assumption of a production environment.
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Rule Numbers
2014:A1.2 
2014:C4.1