3.5 Million Gallons in Annual Sales for Ronnzoil Oils and Lubricants Within First Year Predicted by WWGL
AUSTIN, TX -- (Marketwire) -- 08/11/09 -- Ronn Motor Company, Inc. (RMC) (PINKSHEETS: RNNM) announced today that the Company has awarded World Wide Green
Lubricants (WWGL), the exclusive marketing rights for all Ronnzoil products
sold through the Ronnzoil Premium Green Oil Club (RPGOC) in the United
States and Canada on passenger vehicles under 2 tons, including government
and commercial vehicles. RMC's proprietary Ronnzoil products consist of a
family of "green," biodegradable, and eco-friendly improved performance
products including motor oils, functional fluids, hydraulic fluids and
additives that have been designed and intended for the Automotive Chemicals
aftermarket industry.
Under the terms of the agreement, RMC would receive a royalty of $0.50 to
$3.00 for each gallon of Ronnzoil product marketed and sold through WWGL's
Ronnzoil Premium Green Oil Club. The Ronnzoil Club is designed to be
marketed to individuals through automotive dealerships and lube centers.
WWGL executives expect to commence operations within 90 days as they
complete the development of proprietary software applications, call center
logistics and operations, and marketing and sales materials. Initially, all
Ronnzoil products sold through the WWGL network of lube centers and
dealerships will include a 150,000 mile extended engine warranty, expanding
to a lifetime warranty as the program builds, expands and progresses. This
exclusive warranty is backed by a large AA rated insurer.
With 25 years experience in the insurance and warranty industry, combined
with seven years as a highly regarded oil business consultant, Silas
Mayeux, Founder and Manager of WWGL, is well-known and respected for his
success as a strategic thinker, planner and Founder of the very successful
Castrol Syntec Oil Club (CSOC). Based upon prior and continued success of
CSOC, existing agents and dealers already in place and current market
conditions, the WWGL business plan projects Ronnzoil sales will begin at
50,000 gallons per month with total annual sales in the first year
approaching 2,000,000 gallons. Projected Sales by WWGL by the end of the
second year show an annual run rate of 8,900,000 gallons, third year
16,800,000 gallons and by the end of the forth year, 27,800,000 gallons.
The sales projections indicated above do not include sales to Federal,
State or Local Government fleets which, in themselves, represent an
enormous additional market opportunity.