Avion withdraws from Auto X Prize, cites increasing costs of participating in 100 mpg challenge
Another one bites the dust (see also: LincVolt and HP2G).
The Automotive X Prize will not feature an updated diesel-burning version of the Avion prototype from 1984 . Craig Henderson, the president of Avion Car Company, has sent a withdrawal letter to the AXP claiming that the costs of participating are too exorbitant for a small company like his. Henderson told AutoblogGreen that it wasn't easy to drop out of the AXP, considering that he's been working on high-efficiency vehicles for 25 years, even getting a Guiness record in 1986 for having the first 100+ mpg automobile:
Henderson says the costs he doesn't have the money for include the need to buy $4 million worth of liability insurance and paying for all the accommodations and meals in the upcoming on-road portion of the contest.It was a difficult decision to not sign the Master Team Agreement, a 64-page legal document for the X Prize, but the requirements for the contest and the cost of competing have gotten too rich for a work a day guy like me. I estimated it would cost around 25K to compete in the X Prize and the way the rules are (favoring battery cars) their was little point to continue.
The AXP organizers will tell you that their MPGe method to compare various energy types doesn't favor one or the other, but apparently Henderson sees it differently. He will still be working on the new Avion that he hopes will beat his 113 mpg record set on a 263-mile trip in Washington State in 2008. Now that the Auto X Prize is out of the picture, Henderson promises, "The new Avion will be setting new records for REAL MPG spring of 2010" and the car will "be built on a custom limited production basis soon there after we break our old record." You can read Henderson's letter to the AXP after the jump.
[Source: Avion Car Company]
LETTER FROM AVION:
August 28, 2009
Progressive Automotive X Prize
5510 Lincoln Blvd., Suite 100
Playa Vista, CA 90094-2034
Dear Directors and staff,
On behalf of the Avion Car Company and all of its supporters, I regret to announce that we can no longer meet the increasing financial requirements of participating in the Progressive Insurance Automobile X Prize.
Despite the fact that our car was the first automobile documented at over 100 mpg by the Guiness Book of World Records in 1986 and the fact that we have most recently achieved 113 mpg, we cannot afford to play in an increasing expensive competition.
We were discouraged when the original X Prize rules were written with a limited 100 miles driving range, favoring (from our perspective) the shorter-range battery cars. Even so, Wired magazine considered the Avion among the top half-dozen entries and called our 25-year-old, internal-combustion-powered, aerodynamic design a dark horse to win.
But, to be honest, it has come down to finances.
The unexpected need to purchase $4 million in liability insurance coverage and to commit to paying for overnight accommodations and meals in an as-yet-undetermined number of cities along the contest route has pushed expenses beyond our means.
Therefore, sadly but respectfully, we are withdrawing our entry and request the return of our $5,000 deposit.
We will still be pursuing the development and production of the Avion. The X Prize has in many ways helped us move our project closer to that goal. So look for the Avion to set new fuel-economy records in the spring of 2010!
Craig Henderson
President
Avion Car Company
Reader Comments (Page 1 of 1)
Chris M 4:45PM (9/09/2009)
First off, the X prize rules didn't favor BEVs over internal combustion, the laws of physics did. No doubt Avion Car Co. would have preferred a much longer range requirement to eliminate the battery powered competition, but really, would that be fair?
I expected several drop-outs before the first road trials, due to poor business plans or failure to actually construct a working vehicle, but I didn't expect someone to drop out due to lack of financing! But I should have realized, as financial savvy is what separates the wanna-be car makers with a bright idea but no funding from the fledgling new car companies that actually manage to design, build, test, start production and sell.
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ty 8:31AM (9/10/2009)
Depending upon where you live the answer as to fairness is either yes OR no. If you live between the rockies and the mississippi river the answer is yes. It should be three hundred miles or more (300). Every where else, ( with the except of Alaska ) the answer is no, or " I'm too self-absorbed to care about anybody elses needs so who cares".
Chris M 12:38AM (9/11/2009)
I wouldn't expect a "one size fits all" solution, and neither does the X Prize. That's why they have separate categories for "Mainstream" (4 wheel 4 or more passengers) and "Alternative" (3 wheelers, less than 4 passengers, etc.).
If some X Prize entrants don't have sufficient range for some people, there are other choices available that do have longer range, and that includes some X Prize entrants. Some people can do just fine with a 100 mile range, especially as a 2nd car. There will be choices available regardless of which vehicles win the prize.
BTW, at least one of the X Prize entrants is a Battery Electric with a 300 mile range.
Julie 1:08PM (9/10/2009)
Financing is a tough hurdle for many teams in the Progressive Insurance Automotive X PRIZE. We are certainly sad to see Avion go, as we are with all of the teams that have left the competition for various reasons. As most know, the standards of this competition are quite high, and financing is an important part of being able to create a viable, mass producible vehicle.
We wish Craig and the Avion team much success in their future endeavors and hope they’ll continue to keep us updated on their progress. We’ve really enjoyed getting to know them and learning about their vehicle over the course of the past year.
Next month, we’ll be announcing the teams that have passed Design Judging – the first judged phase of the competition – and that will continue on with us in the competition. And while some great teams, like Avion, leave us now, we’re so encouraged by the large number of diverse, unique and viable teams who are continuing on with us – they offer a terrific range of technologies and ideas. At this point, the vehicles within the competition showcase 8 different energy sources and 11 different engine/propulsion system combinations.
As part of the competition’s Team Development & Relations group, it is very exciting to see the quality of entrepreneurs and engineers who have committed themselves to help push the auto industry forward. We believe they all have a place in the future of auto, and we look forward to showcasing them over the coming months.
Julie Zona
Director, Team Development & Relations, Progressive Insurance Automotive X PRIZE
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RustyLugNut 3:55PM (9/11/2009)
To Chris M,
Have you tried to raise any investors lately? It is not easy in this economic climate. The small teams do not have the personnel to pursue investment and sponsorship full time (which is what it takes) and still leave resources to build and develop the race car.
This is not a reflection of their technological capabilities. Avion, as well as other teams, has a road going prototype that works for what it was intended - maximum freeway efficiency with an ICE.
The Master Team Agreement bore the actual details needed for a team to compete. The official MTA only came out a few months ago. The smaller teams find themselves unable to make adequate adjustments to the Agreement requirements in the months left before the start of the race. Some teams, though capable of meeting the requirements, also withdraw because of reduced "advertising Impact" - what with the impending sale of vehicles such as the Chevy Volt and the Nissan Leaf. The rapidly growing list of announced PHEVs from major manufacturers will slowly diminish the appeal of a 100MPGe winner when there will be 230 mpg cars on the showroom floors (no matter how controversial those derived ratings). Many teams were participating for the advertising value. That value has dropped in recent months.
This is not intended to discredit the tremendous effort put forth by the PIAXP organizers and the Teams that will participate. I like to think the Xpize has already done what it set out to do - shake up the auto industry just a bit - by showing the industry giants what is possible.
We are living through a renaissance in personal transport. We will look back and see the part the Xprize and participating Teams, past and present, had in the change.
Peace,
out.
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