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Feasibility Study of CAU Hybrid Motorcycle Manufacturing

LOW RATE PRODUCTION LINE (Annual Volume: 100,000 units) AND PRE‐COMMERICAL 

RELEASE PROTOTYPE (6 units in 2 models) COST ESTIMATES 

Prepared by: CAU Electric Vehicle Systems Limited

January 2009

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Table of Contents 1.0 Executive Summary………………………………………………………………………….4

1.1 Key Technology…………………………………………………………………..4 – 5 1.2 Business Description………………………………………………………………….5 1.3 Vision…………………………………………………………………………………5 1.4 Mission……………………………………………………………………………5 – 6 1.5 Business Goals………………………………………………………………………..6

Designing a Prototype Hybrid Motorcycle table……………………………………..7 1.6 The production line equipments will include the following items……………………8

2.0 Business Status………………………………………………………………………………..8

2.1 Positioning and Strategy………………………………………………………………9 2.2 Technology Achievements……………………………………………………………9

Hybrid Electronic Motorcycle Complex Structure Diagram………………………..10 2.3 Copyrights and IP’s details…………………………………………………………..10

3.0 Value Chain and Business Model………………………………………………………….10

3.1 An Economic Alternative……………………………………………………….10– 11 4.0 Market Opportunity and Analysis…………………………………………………………11

4.1 Background and Motivation…………………………………………………………11 Energy Consumption & Greenhouse Gases Emission Table…………………..11 – 12

4.2 Market Size…………………………………………………………………….12 – 13 5.0 Market Analysis Summary…………………………………………………………………13

5.1 Target Market Segment Strategy……………………………………………….13 – 14 5.2 Industry Analysis…………………………………………………………………….14 5.3 Competition and Buying Patterns………………………………………………14 – 15

6.0 Vehicle Control System Development……………………………………………………..15 6.1 Control System Architecture………………………………………………………...15 Hybrid Electronic Motorcycle Control System Architecture Diagram……………...16 6.2 Engine Control Development………………………………………………………..16 6.3 Electronic Control Unit (ECU)…………………………………………………16 – 17 Hybrid Electronic Motorcycle Engine Control Flowchart…………………………...17 Hybrid Electronic Motorcycle ECU Diagram……………………………………….18 6.4 Hybrid Electronic Motorcycle Battery Management System………………….18 – 19 Hybrid Electronic Motorcycle Battery Management System Diagram……………...19 6.5 Control Strategy………………………………………………………………..19 – 20

ICE Power Reference Diagram……………………………………………………...20 Engine in the Simulation Model Diagram…………………………………………...21

6.6 Gear Ratio and Gear Shift Control…………………………………………………..21 Gear Strategies Diagram…………………………………………………………….22

6.7 Cylinder Deactivation………………………………………………………….22 – 23 6.8 Exhaust Gas Recirculation…………………………………………………………..23

The Original and the Adjusted EFR Map……………………………………………24 7.0 Cost Performance Estimating & Production Phase……………………………………...24

Before & After Hybrid Convention Technical Parameter Tables……………...24 – 25

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7.1 Hybrid Electronic Motorcycle Commercial Prototype………………………...25 – 26 Hybrid Electronic Motorcycle Power Trains and Components Table…………26 – 27

7.2 Background and Study Methodology………………………………………………..27 7.3 Cost Performance Estimating Relationship Development…………………………. 27 7.4 Hybrid Electric Components…………………………………………………...27 – 28 7.5 Energy Storage Components…………………………………………………...28– 31

Comparison of different Styles of Batteries Table…………………………………..31 7.6 Components of Hybrid Electronic Motorcycle………………………………...........31 7.7 Raw Materials of Hybrid Electronic Motorcycle………………………………31 – 32 7.8 Design of Hybrid Electronic Motorcycle………………………………………32 – 33 7.9 The Manufacturing Process of Hybrid Electronic Motorcycle……………………...33 7.10 Quality Control………………………………………………………………….33 7.11 By-products/Waste………………………………………………………………34

8.0 Strategy and Implementation Summary…………………………………………………. 34 8.1 Competitive Edge……………………………………………………………………35 8.2 Marketing Strategy……………………………………………………………..35 – 36 8.3 Sales Strategy………………………………………………………………………..36

9.0 Budget for pre-commercial release prototype and low rate production line....................36 10.0 The production line equipments will include the following items.…………………..36 11.0 Hybrid motorcycle process production.……………………………………….....36 – 37

12.0 Maintaining A Successful Process…………………………………………………….38

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1.0 Executive Summary CAU Electric Vehicle Systems Limited was established in 2008 to incubate and commercialise the Hybrid Electronic Motorcycle technology, which was developed by Hybrid Electronic Motorcycle Pty Ltd, a company incorporated in Australia, who together have accumulated 19 years of experience through their Research and Development since 1990. They have successfully undertaken many cutting edge projects, including the development of Electronic Control Unit (ECU) for the automotive industry, Hybrid car technology, Automated Mechanical Transmission, Motion Controllers for AC/DC Motors, burning systems utilising vegetable oils as fuel among others.

We are introducing the new Hybrid electronic motorcycle from CAU Electric Vehicle Systems Limited, with its sleek, lightweight, with exceptional performance and environmentally conscious. As with all of CAU Electric Vehicle Systems Limited technology line, it is designed with the future in mind, as a sustainable, low emission two-wheel / three-wheel vehicle. The new Hybrid electronic motorcycle features superior, innovative technology from a Company that is committed to changing the way the world views power…and creating an environmentally sound lifestyle. 1.1 Key Technology

The Hybrid Electronic Motorcycle performs exceptionally well and is ideal for Asian Pacific and some European Countries which are dominated by motorcycles. Geared with unique Hybrid ECU, Battery Management System and Variable Frequent Electric Motor, the Hybrid Electronic

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Motorcycle can be fully charged and ready to roll in a mere two / three hours. Its low emission technology means hardly have any chance to go to petrol station. No more anxiety about rising fuel costs, and best of all, no hazardous for environment.

1.2 Business Description CAU Electric Vehicle Systems Limited is an incubator of motorcycle and electronic technologies. More specifically, the company and its principals have funded the development of the LS Hybrid Electronic Motorcycle over the past 13 years. The company will continue to fund the technology through to commercialisation with a view to commercially launching products within the next a few months. 1.3 Vision The vision of CAU Electric Vehicle Systems Limited (CAU) is to create substantial wealth for its investors through funding and management support with the potential to deliver major technical and economic breakthroughs. 1.4 Mission The mission of CAU Electric Vehicle Systems Limited is to provide environmentally, friendlier motorcycle choices and to convert conventional new motorcycle buyers into conscientious consumers who are aware of external as well as internal costs associated with motorcycle transportation.

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CAU Electric Vehicle Systems Limited is an emerging leader in the development and marketing of low emission two and three wheeled vehicles worldwide. As the global demand and need for sustainable, low emission energy alternatives increases, CAU Electric Vehicle Systems Limited remains committed to applying its superior technology to a vast range of innovative, everyday products. 1.5 Business Goals The core business goals of CAU Electric Vehicle Systems Limited are:

• Produce 6 units in 2 models pre-commercial prototype of Hybrid Electronic Motorcycles within 6 months after the funding is granted.

• Low rate production line (Maximum annual production less than 100,000 units) • Promoting sales of licensing of the technology globally.

• Marketing: dealing with barriers to entry and partnering with global motorcycle

manufacturers worldwide.

• Provide superior product and the best service to motorcycle manufacturers.

• Management: Products delivered on time, costs controlled, marketing budgets managed.

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1.6 The production line equipments will include the following items:

• Complete test equipments for final assembly line (especially to test all the hybrid function)

• Complete wheel motor hub moulds and test equipments for low rate production (100,000 units/year)

• Complete hybrid ECU moulds and test equipments for low rate production (100,000 units/year)

• Complete Electronic differential device moulds and test equipments for low rate production (100,000 units/year)

• Complete Battery Management system moulds and test equipments for low rate production (100,000 units/year)

• Complete Battery charger moulds and test equipments for low rate production (100,000 units/year)

• Complete motion controller moulds and test equipments for low rate production (100,000 units/year)

2.0 Business Status

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2.1 Positioning and Strategy In a Hybrid Electronic Motorcycle, propulsion power is available from two or more types of energy storage and power sources, and at least one source can deliver electric current. Hybrid Electronic Motorcycle technology can reduce both fuel consumption and emissions as its architectures have the possibility of downsizing the engine, reducing the transient load on the engine, and recovering energy during regenerative braking. In addition, Hybrid Electronic Motorcycles have the ability to satisfy power demands by moving between the thermal and electrical paths. Hybrid Electronic Motorcycles can overcome the Electric Motorcycle problem of limited range and provide reduced emissions. Hybrid Electronic Motorcycles are normally divided into subtypes of series, parallel or series-parallel (split), which refers to the manner in which the engine and electric motor supply power through the propulsion system to the wheels. 2.2 Technology Achievements Hybrid Electronic Motorcycles have the potential to reduce air pollution and improve fuel economy without sacrificing motorcycles performance and available infrastructure for conventional motorcycles. Much research has been done on Hybrid Electronic Motorcycles in Lawren Solutions. The research includes vehicle architecture design, energy storage system development and electric propulsion systems of development. We had completely finished the design for the Hybrid Electronic Motorcycle, which uses complex hybrid structures. These structures encompass three or more energy sources and/or drive systems. The possible options are manifold (series-parallel mixed structure, additional energy sources). The Hybrid Electronic Motorcycle is an interesting solution for the intermediate vehicle population segment that frequently is used in town but also as a commuter vehicle. In this structure, the state of charge of the traction battery at the end of a service day is lower than at the beginning. The batteries are thus supposed to be recharged from an external source (electric grid).

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2.3 Copyrights and IP’s details

• Hybrid Electronic Motorcycle ECU • Battery Management System for HEMC • Trade Mark

The developments of the technologies that underpin the hybrid motorcycle have entailed considerable research and development and engineering design. HEMC has sought copyright protection over its designs rather than patent protection as the directors are of the view that superior protection is afforded by not publicly disclosing its designs or source code as would be required with patent protection. Whilst there is always the risk that designs may be copied, key elements of the designs and in particular the source code cannot be reverse engineered providing a high level of certainty of protection of the intellectual property of the company. On 11 April, 2007, Hains Solicitors in Queensland, Australia acknowledged receipt for safe custody the description including circuit design for the Electronic Control Unit. 3.0 Value Chain and Business Model 3.1 An Economic Alternative The key technology for the Hybrid Electronic Motorcycle is Electronic Control Unit (ECU). We are the first ECU R & D commercial manufacturer in Australia and China, where we now have first class engineers and facilities. China’s developing ‘industrial age’ and large population gives us many fine minds and skilled hands to produce products at very reasonable prices.

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There are currently only a handful of ECU manufacturers in the world and they understandably protect the designs of their products very well. These manufacturers are:

• Dephi, USA. • BOSCH Corporation, Germany. • Denso, Japan.

BOSCH is the world’s biggest automobile spare part supplier. In the gasoline/petroleum fuel injection domain, Denso and Dephi have about equal market share. We own 100 percent of the Intellectual Property rights and our R & D costs is only about 20 percent of those of our competitors. Our company’s Hybrid ECU product is of an extremely high technical standard, with the product selling price being much lower than that of our competitors. 4.0 Market Opportunity and Analysis 4.1 Background and Motivation The transportation system is very important to the entire world today, but at the same time gasoline and diesel fuelled vehicles burn oil in an internal combustion engine. Therefore, concerns about atmospheric pollution and dwindling petroleum supplies continue to stimulate research on new, clean, and fuel-efficient vehicle technologies. With this trend in mind, the use of alternative, renewable fuels and innovative vehicle architectures has been a proposed solution to help reduce harmful emissions. In recent years, activity in alternative fuel research, such as bio-diesel, ethanol, hydrogen, natural gas, and propane has increased rapidly. Also, several of the largest automotive companies (GM, Ford, Honda, Nissan and Toyota, etc.) and academic research institutions all over the world have begun to do research on advanced vehicle development including Electric Vehicle (EV), Hybrid Electric Vehicle (HEV) and Fuel Cell Vehicle (FCV). Electric vehicles have long held the promise of zero emission vehicles. However, battery powered electric vehicles have not been accepted by the general public, in large part, because of their very limited range. Hybrid Electronic Motorcycle with gasoline engines can get rid of the problem of limited range and reduce a lot of emissions. Energy Consumption and Greenhouse Gases Emissions Table (source from USA Federal Reformulated Gasoline) Energy Consumption (kJ/km) Greenhouse Gases Emissions (g/km)

Vehicle Type WTP PTW WTW WTP PTW WTW Gasoline 884 3,679 4,563 73 264 337 Gasoline Hybrid 783 2,950 3,733 60 219 279

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Electrical 2,886 0 2,866 239 0 239 Fuel Cell 1,250 1,757 3,007 188 0 188 4.2 Market Size According to Stock House (www.stockhouse.com), the global motorcycle production is expected to grow at 5 percent annually through 2011, with China expected to produce more than 40 percent of all motorcycles. In 2008, China will adopt Euro III emissions regulations, which all for significant reductions of hydrocarbon, NOx (oxides of nitrogen) and CO (carbon monoxide) emissions from two/three wheel vehicles. These tighter clean air regulations will cause demand for emissions systems to grow faster than overall motorcycle production rates worldwide. With the current motorcycle technology, it will be costly to implement Euro III emission regulations, to solve this problem, Hybrid Electronic Motorcycle is the only solution and economical to meet the Euro III requirement. Global motorcycle demand is forecast to advance 4.9 percent annually through 2009 to 41.6 million units – value at almost US$40 billion (source from www.thomasnet.com). Worldwide demand for motorcycles remains strong despite the slowdown in growth in key markets such as China, which is rapidly transitioning toward cars for its transportation needs, according to a study by the Freedonia Group, Inc. The industrial market research firm’s report forecasts global demand for motorcycles to advance 4.9 percent annually through 2009 to 41.6 million units, valued at almost US$40 billion. However, this is still down from 6.8 percent annual increase from 1999 through 2004, as an article in IndustryWeek pointed out. Demand for all categories of motorcycles is expected to remain healthy, and increased growth in all categories will be seen in developed markets, where rising fuel prices and – in some markets – continued restrictions in car use “are stoking interest in the exceptional fuel economy and cost-effectiveness of motorcycles”, the Cleveland-based research firmed noted. So fuel efficiency and continued restrictions on car use in developed markets were cited as reasons for the continued growth. However, while the market for expensive high-powered motorcycles also is expected to remain strong, its aging United States and Western European customer base is raising concerns. As well, restrictions on motorcycle use in China’s large metropolitan areas and some other Asian countries will likely cause a shift in demand away from urban areas to more rural markets, according to the Freedonia Group’s “World Motorcycles” report. The new study breaks down into essentially two separate motorcycle markets: one is centred in the industrialised Triad (i.e., the USA, Japan and Western Europe), where motorcycles are seen as pleasure vehicles by consumers already owning one+ automobile(s); the other, a much larger market in unit terms, is found in the emerging economies of Asia, where motorcycles are seen as primary family and work vehicles. The latter vehicles are cheaper, smaller and less powerful than Triad motorcycles. While Asia is dominant in terms of unit volume, most major manufacturers focus their efforts on developed markets such as North America, as they derive far higher revenues per unit via sales in these developed markets.

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Hybrid Electronic Motorcycle Pty Ltd estimated that in the very near future, there will be at least over 40 percent (over US$16 billion) of the motorcycle worldwide will be adopting the Hybrid Electronic Motorcycle technology as it is affordable, reliable and economical to meet the environmental requirement worldwide (Euro III, IV emissions standards). 5.0 Market Analysis Summary 5.1 Target Market Segment Strategy Hybrid Electronic Motorcycle customers can be divided into five groups: 1. Early-adopters

Hybrid Electronic Motorcycle first customers will likely be early-adopters. The reason for this is that these people will eagerly seek out the risks in purchasing an automobile that operates on alternative fuels in exchange for the status of being an automobile pioneer. This type of customer will range widely in age but will share an interest in automobile engineering and maintenance. Therefore, these customers will be most easily accessed by advertising in magazines marketed to automobile enthusiasts, engineers, hobbyists, mechanics and scientists. Other members of this customer group will be attracted by consumer protection reports that have given favourable ratings to our Hybrid Electronic Motorcycle. Favourable reviews by these customers will lend credibility to low emissions vehicles as not only environmentally friendly, but also as the economically preferable transportation option. The younger generation will be attracted to low emissions vehicles once they see early-adopters driving these Hybrid Electronic Motorcycles around.

2. The younger generation The younger generation is not vested in perpetuating fossil-fuel-based transportation and economic systems and therefore, requires less marketing to demonstrate the advantages of low emissions Hybrid Electronic Motorcycles. The younger generation will be likely to purchase low emission automobiles because these automobiles affect their future. These automobiles will have far less pollution compared to the conventional motorcycles. The reason for this is that after past generations have ignored the warning signs of global warning, the younger generations are now witnessing the cumulative and destructive effects that carbon-based-fuel systems are having on the environment and global eco-political structures. The younger generation will be likely to purchase an automobile of some sort between age sixteen and twenty-one. If the younger generation buys into the former gasoline-based automobile market, there will be more gas-burning vehicles on the road. More gas guzzling vehicles will pollute the air. Therefore, converting the next wave of vehicle consumers to a non-fossil-fuel-dependent form of transportation will more likely achieve Hybrid Electronic Motorcycle mission of a low emission transportation system worldwide. Most importantly, investing in the future customer base of the younger generation will ensure exponential increase in Hybrid Electronic Motorcycle sales for years to come.

3. Environmentalists

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Hybrid Electronic Motorcycle customers will also include environmentalists. This category of customer exercises their purchasing power and will accept the risks in purchasing an automobile that operates on alternative fuels in exchange for the obvious environmental benefits and future rewards of low emissions transportation systems. Therefore, these customers will be most easily accessed by direct marketing campaigns to local conservation groups, outdoors athletic clubs, and environmentally- sensitive political parties.

4. Working class in the city region Driving a conventional vehicle in city traffic is usually not efficient. This is due to the low power demand relative to the large amount of power available. This implies that the efficiency rarely reaches the higher levels in city driving. A smaller engine, adapted for city traffic would increase the efficiency, but would also imply inability to drive in highway traffic due to an unreachable power demand. The advantage with a Hybrid Electronic Motorcycle run in city traffic is the possibility to run in electric mode at low power demands and use the Internal Combustion Engine at larger power demands or use combinations of thereof.

5. Low emission motorcycle permit region China, the world’s leading producer of motorcycles with more than 13 million units manufactured annually, has been systematically banning or limiting the use of motorcycles. Most recently, the large Chinese city of Guangzhou, formerly known as Canton, will join over 100 other cities in banning all motorised two-wheelers. As of January 1, 2007, the city’s 260,000 registered motorcycles in the city will be forced off the roads, as well as an additional 100,000 unregistered ones and tens of thousands of people who use the vehicles to earn a living and make deliveries must turn them in for scrap or move them out of the city, largely because they are viewed as polluting machines that are not good for the environment. We believed that most of the Asian countries authorities (such as Thailand, Philippine, Vietnam, India, Pakistan, Malaysia and Indonesia) will follow suit to ban the conventional motorcycles. Hybrid Electronic Motorcycles are the only solution for these regions motorcycles customers.

5.2 Industry Analysis Motorcycle sales are one of the largest industries in the world. The motorcycle industry is diversified into many large and small sub-groups, each supplied with high concentrations of capital. Many sub-groups enjoy support from classic motorcycle and electric engineering enthusiasts in the western world. Most of the Asian countries motorcycle customers require solid, robust, reliable and affordable motorcycles. Services are bought and sold upon word-of-mouth recommendations and product image. 5.3 Competition and Buying Patterns Motorcycle sales are about transportation for the individual. Customers seem to choose their vehicle based on their self image. One motorcycle maker’s success depends on image and trends in one part of the market, and on advertising and word-of-mouth recommendations in another.

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Visibility, delivery, reliability, and features are critical. While price is less a factor in this industry than delivery and reliability, materials used by manufacturers in volume must come from reliable sources because the niche industry of low emission motorcycles should not be subject to risky fluctuations in wholesale and subsequently retail values. Features will also be important because our Hybrid Electronic Motorcycle must be viewed as the highest technology. Target customers choose between competing motorcycles based on brand name image and word-of-mouth. Motorcycle performance and image are major factors in developing word-of-mouth recommendations. Customers like that their choice of low emissions motorcycles protects the environment. 6.0 Vehicle Control System Development The vehicle control system is an integrated system that is composed of many sub-systems, such as engine, electric motor, battery, brakes, fuel, etc. Each sub-system is also a complete system and has its own desired functionality and performance. Some sub-systems have their own controllers, while some do not. However, almost every sub-system has sensors and actuators that are operated by either an original equipment manufacture (OEM) controller or a custom built controller. In addition, all the sub-systems in the vehicle must be coordinated to achieve better fuel economy, fewer emissions and good performance. Therefore, the control system plays a very important role in the implementation of hybrid power-train to achieve multiple objectives. 6.1 Control System Architecture The basic structure of the control architecture in the prototype Hybrid Electronic Motorcycle is shown in the following diagram. The diagram shows the complete schematic of the vehicle power-train control system architecture. The function of central controller is to control the operation of the hybrid system through input and output signals, manage communication with sub-system controllers, and monitor other system status. According to the driver’s command and current status of the sub-systems, the central controller sends proper signals either to the controllers or the individual component to perform certain operations. After the sub-system controller receives a command, it sends signals to the corresponding device.

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Hybrid Electronic Motorcycle Control System Architecture Diagram

6.2 Engine Control Development Control techniques for a Hybrid engine control remain similar to that of a gasoline spark ignition (SI) engine. However, due to the new structure of Hybrid Electronic Motorcycle petrol engine needs more accurate control to assure the engine reaches maximum horsepower and runs at its most efficient points. 6.3 Electronic Control Unit (ECU) The following diagram shows the inputs and the outputs of the engine control unit (ECU). There are seven major inputs into the engine control unit (ECU). The crank shaft and cam shaft sensors determine at what speed the engine is turning and which cycle the engine is currently running, respectively. The throttle position sensor (TPS) is used to determine what the throttle position is doing to reflect the driver’s intention. Manifold absolute pressure (MAP) and barometric absolute pressure (BAP) are used to calculate the load the engine is under. The air temperature sensor determines the temperature of the air entering the engine. The engine temperature sensor is used to determine load does not accurately represent the actual engine load but merely the load which the driver demands. An accurate calculation of the engine load is to use the MAP and BAP because engine load is determined by the amount of vacuum being pulled within the intake manifold. According to the inputs, four fuel injector signals and four ignition signals are produced to control each cylinder separately and sequentially. Another diagram shows the engine control

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flowchart. The pressure sensor, temperature sensor and oxygen sensor reading are treated as feedback to adjust the main injection and ignition tables.

Hybrid Electronic Motorcycle Engine Control Flowchart

According to the input signals, the ECU generates appropriate injection and ignition signals. The relationship of the inputs and outputs are often difficult or even impossible to describe by mathematical equations. Therefore, a large number of lookup tables are used to determine the pulse width and timing. If the inputs (for example, engine RPM and engine load) correspond exactly to a point in the table, then the table value for this point is used. If the engine RPM and engine load do not correspond exactly to a point in the table then the values of the four closest points are mathematically interpolated to arrive at an appropriate value depending on how close the current RPM and efficiency are to the different points.

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6.4 Hybrid Electronic Motorcycle Battery Management System Automotive battery management is much more demanding than the other application. It has to interface with a number of other on board systems, it has to work in real time in rapidly changing charging and discharging conditions as the vehicle accelerates and brakes and it has to work in a harsh and uncontrolled environment. This example describes a complex system as an illustration of what is possible, however not all applications will require all the functions shown here. The functions of a Battery Management System suitable for a Hybrid Electronic Motorcycle are as follows:

• Monitoring the conditions of individual cells which make up the battery. • Maintaining all the cells within their operating limits. • Protecting the cells from out of tolerance conditions. • Providing a “Fail Safe” mechanism in case of uncontrolled conditions or abuse. • Compensating for any imbalances in cell parameters within the battery chain. • Setting the battery operating point to allow regenerative braking charges to be absorbed

without overcharging the battery. • Providing information on the State of Charge (SOC) of the battery. This function is often

referred to as the “Fuel Gauge” or “Gas Gauge” • Providing information on the State of Health (SOH) of the battery. This measurement

gives an indication of the condition of a used battery relative to a new battery. • Providing information for driver displays and alarms. • Predicting the range possible with the remaining charge in the battery. • Accepting and implementing control instructions from related vehicle systems.

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• Providing the optimum charging algorithm for charging the cells. • Providing means of access for charging individual cells. • Responding to changes in the vehicle operating mode.

In practical systems, the battery management system can thus incorporate more vehicle functions than simply managing the battery. It can determine the vehicle’s desired operating mode, whether it is accelerating, braking, idling or stopped, and implement the associated electrical power management actions.

6.5 Control Strategy The presence of a secondary power unit, primary and/or secondary energy storages in the motorcycle creates unique control possibilities for the Hybrid Electronic Motorcycle compared with the conventional motorcycle. By using a control algorithm that avoids the disadvantage and benefits the advantage, a new dimension in vehicle control is obtained. Time Constant A fundamental consideration when dealing with Hybrid Electronic Motorcycles is that the dynamic operation of the ICE must be limited. It is argued that an ICE consumes fuel and generates emissions out of proportion when making changes of operating point with a certain rate, compared to the fuel consumption and emissions in stationary operation. The simplest way to limit the dynamic operation of the ICE is to low pass filter the required power from the ICE. The choice of time constant therefore significantly affects the motorcycle behaviour and must be selected to ensure quasi-stationary operation of the ICE.

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With Time Constant theoretically set to zero, the engine is used like an engine in a conventional motorcycle. No power is supplied from the battery, if the ICE can deliver the demanded power. The drawback is that a transient behaviour of the ICE involves an increased amount of emissions. When Time Constant increases, the battery has to supply an increased amount of transient power. Charging Gain The ICE power demanded is a sum of power demands for traction, auxiliary power and a proportion of the deviation of the SOC. When the SOC diverges from its reference value, a P-controller requests a correction (the battery can be overcharged as well). With a small gain factor, a SOC deviation is slowly corrected, i.e. the battery permitted to compensate for a transient ICE power request. This will be done to the price of larger deviations of SOC. A larger gain factor adjusts the SOC deviation quicker, at the expense of higher ICE power and its associated emissions. The SOC deviation is multiplied with both the maximal ICE power and with a gain factor, called Charging Gain, and thereafter added to the total ICE power demand. When choosing a larger gain it is accompanied with reduced utilisation of the battery. The ICE has to supply the power demand on its own to an increasing extent when the gain is increased. A small gain stresses instead the battery. A large deviation in SOC reduces the battery lifetime and consequently ought to be avoided. The Charge control algorithm suggested in the above diagram is simple and more advanced methods are proposed in literature. It is however rather efficient when compared to much more ambitious algorithms. Since the focus in this thesis is on control aspects related to the ICE itself, no study deeper that the one already present in is made here. Efficiency Optimisation To achieve certain demanded power there are several feasible torque/speed combinations (load points). The different load points will though imply different efficiencies. One of the advantages with Hybrid Electronic Motorcycles is that the engine speed can be chosen relatively freely relative the motorcycle speed. It is, after all, depending on transmission (5-speed manual-, 5/6-

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speed automatic transmission or CVT). Therefore an examination of the efficiency for all possible load points, for every single power level in the engine in question, has been made. The aim is to guarantee the highest possible efficiency for the present power demand. This has been carried out as follows: An optimisation algorithm will find a number of load points with optimum efficiency. These points are not necessarily connected along a smooth path, but represent the best efficiency for each power value. In order to obtain a system where the engine can change its load point smoothly during a driving cycle, the various optimum load points have been connected along a smoothened path. This path represents the most efficient operation for different power values. The result is shown below.

Optimal choice of load points considering the NOx production for the engine in the simulation model. 6.6 Gear Ratio and Gear Shift Control Yet another control parameter is the choice of gearbox, its gearing and its final drive ratio. Should the vehicle be equipped with a 5- or 6-speed manual or automatic transmission or a CVT? The choice of transition speeds/levels between different gears in a X-speed gearbox represents yet another degree of freedom. To investigate the impact of different gear ratios different solutions have been implemented in the simulation model. Besides the gear ratios, belonging to the motorcycle where the engine derives from, some alternative gear ratios have been defined. The gear transition levels have also been adapted for lowest fuel consumption or lowest NOx emission. Following shows two examples of gearshift strategies, one CVT and one 5/6-speed gearbox.

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Gearshift strategies. CVT strategy (dashed black line) and 6-speed gearbox (solid grey line) 6.7 Cylinder Deactivation The main advantage with a Hybrid Electronic Motorcycle is the possibility to choose to only operate the ICE when the efficiency is above a certain limit. This results in electric mode at low velocity. Inversely it implies that a conventional motorcycle operates at low efficiency when driving in city traffic. One way of rectifying this would be to equip the conventional motorcycle with a smaller engine. But that result in a motorcycle that cannot keep up with the highway speed or manage swift overtaking. A solution to this issue is to use cylinder deactivation, i.e. to switch off a certain number of cylinders at low power demand. If hybridisation and cylinder deactivation are combined, new possibilities open up. The working area representing the sufficiently high efficiency would increase in other words. The solution also benefits the conventional vehicle. The number of deactivated cylinders can, theoretically, vary from zero to all, except one, of the present cylinders. In this study the efforts have been focused on full sized engine and an engine with half of the cylinders deactivated. Deactivating the engine implies that consideration must be taken to the deactivated cylinders. The cylinders cannot just be “switched off”, unless the engine does not actually consist of two engines, where one can be switched off. The drawback with that solution is the need for mechanic separation of crankshaft, camshafts etc. When the cylinders are not switched off, but deactivated, it implies that the pistons are moving up and down without combustion taking place. The fuel feed is interrupted as well as the ignition. The movement of the pistons is taking place due to the existence of a common crankshaft. The movement of the deactivated pistons however, still suffer from mechanical losses.

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If decoupling of cylinders is not possible, the optimum cylinder deactivation would be to close valves and fuel feed for the deactivated cylinders. This would however require a flexible valve mechanism. The piston movement in a conventional engine implies that gas exchange is taking place. This brings about that air from the deactivated cylinders will be diluting the exhausts from the other cylinders, cooling down the exhaust gas mixture. It also results in pump losses and a risk that the catalyst becomes too cold. The power extracted in the burning fuel should not only propel the motorcycle, it should also overcome the inner losses of the engine, the friction losses. These inner losses are, for example, piston assembly, pump losses, compression losses, valve train, crankshaft and seals. Their relative impacts vary depending on engine speed. If the engine were equipped with a valve mechanism without a common camshaft, which makes it possible to control the valves individually, it would open up a possibility to reduce the losses from the deactivated cylinders. Such technology is currently being evaluated by the automotive industry and may very well be a reality in a not too distant future. 6.8 Exhaust Gas Recirculation Exhaust Gas Recirculation (EGR) in an engine for a conventional vehicle does not suit the engine in a hybrid application, since the load point where the EGR is used does not necessarily coincide with the load points preferred in the hybrid application. A purpose of a Hybrid Electronic Motorcycle is to achieve a higher efficiency than a conventional motorcycle uses. The best efficiency is reached at load points different from those where the EGR is in operation in a conventional motorcycle. Therefore it needs an adjustment for hybrid application. To stress the maximum possibilities that EGR supplies with, the highest used EGR has been detected in the data belonging to the engine in question. A new efficiency and NOx map has then been created, with the highest used EGR all over the working area. This is a method to investigate the possibilities an adjusted EFR could bring about regarding NOx emission and efficiency. The following diagram shows the original and the adjusted EGR map (scaled to the engine size used in the simulation model).

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The above diagram shows the original EGR (lower graph) and the adjusted EGR (upper graph). Since the Hybrid Electronic Motorcycle is controlled to use high ICE efficiency, the working area ends at an area mainly outside the peak of the original EGR ICE – internal combustion engine SOC – state of charge reference CVT – continuously variable transmission 7.0 Cost Performance Estimating & Production Phase Before the Hybrid Convention Technical Parameter Dry Weight 140KG Wheel Base 1450MM Exterior Size 1250 x 650 x 1600MM Maximum Speed 90KM/H Maximum Payload Mass 145KG Fuel Capacity 12L Braking Type F/R Disk, Disk Engine Type 4 Stroke, Single, Air-Forced Cool Maximum Power 6.5KW / 7500R / Min Starting system Electric, Kick Tyre Size 110/90 – 12PR/130/70 – 12PR Battery Size 12V – 7AH After the Hybrid Convention Technical Parameter Dry Weight 168KG – 184KG Wheel Base 1450MM Exterior Size 1250 x 650 x 1600MM Maximum Speed 90KM/H Maximum Payload Mass 125KG

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Fuel Capacity 12L Braking Type F/R Disk, Disk Engine Type 4 Stroke, Single, Air-Forced Cool Maximum Power 6.5KW / 7500R / Min Starting system Electric, Kick Tyre Size 110/90 – 12PR/130/70 – 12PR Battery Size 12V – 7AH + 8 x 12V 20AH Variable Frequency Motor 750W 7.1 Hybrid Electronic Motorcycle Commercial Prototype

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Hybrid Electronic Motorcycle Power Trains and Components (estimate cost only) Items

Prototype < 10 units Low Rate Production < 500 units

Production Phase > 50,000 units

750 Watt variable Frequency Motor

RMB $5,000 RMB $1,000 RMB $500

Motion Controller

RMB $10,000 RMB $450 RMB $305

Hybrid Electronic Motorcycle ECU

RMB $15,000 RMB $480 RMB $170

Battery Charger & BMS

RMB $23,000 RMB $820 RMB $230

Electric Clutch

RMB $7,000 RMB $620 RMB $180

Alternator ≥ 1000W (Optional)

RMB $350 RMB $300 RMB $275

Start up Motor (Optional)

RMB $120 RMB $100 RMB $92

Battery: 8 x 12V 20AH Lithium Ion Silicate Lead-Acid

RMB $15,000 RMB $3,200 RMB $1,800

RMB $6,880 RMB $1,720 RMB $1,100

RMB $2,890 RMB $1,250 RMB $780

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Exchange rate as per 7th January 2009 – US$1 = RMB $6.83 Lifespan on Battery: Lithium Ion ≥ 1,000 times Silicate ≥ 600 times Lead-acid ≥ 350 times 7.2 Background and Study Methodology The internal combustion engine (ICE) has been the primary source of automotive transport power for over a century. However, in response to growing concerns about fuel economy, environmental quality, and dependence on foreign sources of oil the government, automobile manufacturers, and automotive consumers are seeking out alternative methods of automotive power. One such alternative is hybrid electric motorcycles. A hybrid electric motorcycle combines two sources of motive power. The most common type is petrol-electric hybrids, which combine an internal combustion engine with battery powered electric motors. There is few type of hybrid powered vehicle prototypes being invented, but the battery powered hybrids, however, are the most advanced. Hybrid vehicles are being used to pave the way toward fuel cell motorcycles, which will not be ready for widespread commercialisation for another 10 to 15 years. Significant obstacles must be overcome before the technology becomes widespread. Many of the components that either do or will make up hybrid electric power trains are in their technological infancy. In particular, batteries capable of powering hybrid electric vehicles are still in development. Without further advances in this area, it is not likely that hybrid electric vehicles will gain significant market share either in commercial or military markets. Battery packs necessary to power these vehicles are large and heavy. The weight reductions due to engine downsizing often do not come close to the weight increases caused by the battery packs. Additionally, the space claim of the batteries is significant. While batteries and energy storage in general is the most significant obstacle, other components present challenges as well. The motors for hybrid electric vehicles are still developing and are being produced at low quantities. Further, high power density engines that could alleviate many of the weigh and volume concerns are still in development. 7.3 Cost Performance Estimating Relationship Development Hybrid electric vehicles system components are in various stages of development. As a result the data available for analysis varies widely. For components where ample data exist, the approach to CPER development was to collect data from multiple sources, Identify significant independent variables and fit a cost equation to the data. In many cases, the components are either not mature or not tailored to hybrid electric vehicle applications. In this situation, the approach was to interview subject matter experts. We obtained the limited data that exists as well as insight into trends, technical barriers, and manufacturing that allowed us to develop basic relationship and factors for development, prototype, low rate production, and production phases. 7.4 Hybrid Electric Components The major hybrid electric component categories analysed are energy storage and power train. Energy storage possibilities include batteries, capacitors and Power train components include:

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1. Variable Frequency Motor (750W – 1000W) 2. Hybrid Electronic Motorcycle ECU 3. Motion Controller 4. Battery Charger 5. Battery Management System 6. Electric Clutch 7. Start up Motor (optional) 8. Alternator (optional ≥ 1000W)

We discuss four program phases for most components: development, prototype, low rate production, and full production. There are varying degrees of data availability for each. Data is most abundant for low rate and full production costs for each of the components. Prototype costs are available to a lesser extent, but we are able to develop reasonable estimates for this phase for many components. Data is very limited for component development costs. The costs to develop hybrid electric vehicle components, subsystems and systems are very difficult to estimate due to a number of factors. First, the available documentation is limited, as much of the effort is privately funded. The areas of research, the status of the progress, the technology barriers and the strategic alliances are often closely guarded proprietary information. Second, the development efforts often are derived from other related programs and contribute to other programs, making it difficult to separate costs. The effect is that the costs to develop specific products are blurred by association with other developmental efforts. A third consideration is the uncertainty of the hybrid electric vehicle configuration to host the components. The host vehicle environment is somewhat fluid. Areas that will influence development costs include the following: electromagnetic interference, ruggedization, shock and vibration, duty cycle and system configuration. These areas affect the design specifications that drive the development budgets. Through interviews with the hybrid electric community, several development cases-in-point were discussed. Order of magnitude estimates were offered based on actual experience, vendor quotes and engineering estimates. These have been collected to provide the best information available for estimating the development costs of various hybrid electric components, subsystems, and systems. 7.5 Energy Storage Components

Energy storage is the most significant obstacle to widespread market integration hybrid electric vehicles, particularly in the conventional market. In most of the developing countries such as the Asian regions, vehicles require significant energy storage for cooling the crew and electronic equipment, as well as for silent mobility and silent watch. The battery pack necessary to meet the energy storage and power needs of a hybrid electric vehicle makes significant weight and space claims on the vehicle. This is because gasoline has greater energy density and specific energy than batteries. Thus, in order to provide the same level of energy storage as conventionally powered vehicles, hybrid electric vehicles must dedicate a larger proportion of vehicle weight and volume to energy storage. This produces a severe weight penalty as a result of large battery packs. In order to make hybrid electric vehicles rugged to the environment of Asian Pacific countries, these energy density and specific energy issues must be addressed. Substantial investment has been made in technologies that provide improved energy density and specific energy, while also being safer and cleaner than existing technology. New battery technologies include Valve Regulated Lead Acids (VRLA), Nickel Metal Hydride (NiMH), and

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Lithium Ion. Other energy storage technologies being developed include ultra capacitors, flywheels, and fuel cells. CPERs are developed the battery technologies, as well as ultra capacitors. Flywheels and fuel cells are discussed, but are too early in development for reliable estimation. Battery Batteries are likely to continue to meet near-term automotive energy storage needs, hybrid electric or otherwise. However, the battery currently most common in automotive applications, the liquid lead acid battery, while relatively inexpensive, is inadequate in terms of energy density and specific energy. Also, if cracked or tipped over, it will spill acid, and it produces hydrogen when being charged. These situations cause hazardous conditions and make air transport with filled batteries impossible. New battery technologies promise to satisfy the energy storage and power requirements for hybrid electric vehicles while reducing weight and volume. They are in various stages of development, and cost more than current technology. These include advanced lead acid batteries and entirely new battery technologies. The advanced lead acids, known as Valve Regulated Lead Acids (VRLAs), avoid the spillage and leakage problems of conventional liquid lead acid, while also providing superior performance. The new technologies, which include Nickel Metal Hydride (NiMH), Lithium Ion, Lithium Polymer, and Nickel Cadmium, provide energy density, specific energy, power, lifetime, and storage life advantages over all forms of lead acid batteries, new and old. They have higher initial costs than the VRLAs, due partly to an earlier stage of development, and partly to higher material costs. The latter means they are likely to remain more expensive when compared to full production VRLAs. However, their longer life and other benefits associated with weight and volume gains will mitigate the higher cost over the course of a vehicle’s life. General Methodology CPER are developed for NiMH, Lithium Ion, and VRLA batteries. Each battery type is estimated as a function of energy storage, with kilowatt-hours being the standard metric. The two other battery types mentioned are discussed but are not estimated. Lithium Metal polymer batteries are too early in development to estimate. Nickel Cadmium batteries are not likely to be used for reasons that are discussed. The requirements hybrid electric vehicle are severe enough that individual batteries must be packaged together to achieve the necessary power and energy. These packs require systems to manage the electrical and thermal performance of the individual batteries. Lithium Ion and NiMH batteries are typically chosen for hybrid electric vehicle applications, and are thus normally packaged for that purpose. The available data for these two battery types includes the cost of this packaging, and the CPERs that were developed estimate the full cost of the battery packs: the batteries, controls and container. Since VRLA batteries are primarily used in commercial automotive applications, the data on them represents the costs of individual batteries. A separate factor to account for the cost of assembling the VRLA into a pack had to be developed. A general limitation of these CPERs is that they represent commercial market batteries. Hybrid Electronic Motorcycle batteries

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Batteries are an essential component of Hybrid Electronic Motorcycle (HEM). Although a few production HEMs with advanced batteries have been introduced in the market, no current battery technology has demonstrated an economically acceptable combination of power, energy efficiency, and life cycle for high-volume production vehicles. Desirable attributes of high-power batteries for HEM applications are high-peak and pulse-specific power, high specific energy at pulse power, a high charge acceptance to maximise regenerative braking utilisation, and long calendar and cycle life. Developing methods/designs to balance the packs electrically and thermally, developing accurate techniques to determine a battery’s state of charge, developing abuse-tolerant batteries, and recyclability are additional technical challenges. Our Battery management system is one of the best devices to challenge the problem. Silicate batteries Silicate batteries can be designed to be high power and are inexpensive, safe, and reliable. A recycling infrastructure is in place for them. Silicate batteries have the following advantages:

• High capacity • High current output – almost double the traditional lead acid battery • Rapid recharge time (full charge in ~3.5 hours) • Wider range temperature performance (-50°C to + 70°C) • Longer life span (>400 charge cycles). Some model can be >600 • Life cycle is almost double the traditional lead acid battery • Environmentally friendly (silica salt chemistry) • Smaller size compare to the lead acid battery • Energy capacity is 20-30% higher than traditional lead acid battery • Battery is completely sealed, maintenance free and has no problems with leakage • No disposal issues as the silica gel can be diluted and poured straight on to vegetation as

a fertiliser • Can maintain charge for over 12 months at normal temperatures even if not used in that

time. • Can use existing production lines for lead acid batteries to produce the silicate battery • Is price competitive

Silicate batteries have the following disadvantages:

• Bulky in size compare to other batteries except lead acid batteries • Heavier than other batteries except lead acid batteries

Nickel-Cadmium batteries Although nickel-cadmium batteries used in many electronic consumer products have higher specific energy and better life cycle than lead-acid batteries, they do not deliver sufficient power and are not being considered for HEV applications. Nickel-Metal Hydride batteries Nickel-metal hydride batteries used routinely in computer and medical equipment, offer reasonable specific energy and specific power capabilities. Their components are recyclable, but a recycling structure is not yet in place. Nickel-metal hydride batteries have a much longer life cycle than lead acid batteries and are safe and abuse-tolerant. These batteries have been used successfully in production electric vehicles and recently in low-volume production HEMs. The main challenges with nickel-metal hydride batteries are their high cost, high self-discharge and

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heat generation at high temperatures, the need to control losses of hydrogen and their low cell efficiency. Lithium Ion batteries The lithium ion batteries are rapidly penetrating into laptop and mobile phone markets because of their high specific energy. They also have high specific power, high energy efficiency, good high temperature performance, and low self-discharge. Components of lithium ion batteries could also be recycled. These characteristics make lithium ion batteries suitable for HEM applications. However, to make them commercially viable for HEVs, further development is needed similar to those for the EV-design versions including improvement in calendar and cycle life, higher degree of cell and battery safety, abuse tolerance and acceptable cost. Lithium Polymer batteries Lithium polymer batteries with high specific energy initially developed for EM applications, also have the potential to provide high specific power for HEM applications. The other key characteristics of the lithium polymer are safety and good cycle and calendar life. The battery could be commercially viable if the cost is lowered and higher specific power batteries are developed. COMPARISON OF DIFFERENT STYLES OF BATTERIES Comparison of features of various types of batteries (source: e-max): Battery type Energy density

(Wh/kg) Cycle life Charge time (hrs) Efficiency (%) Cost

(US$/Wh) Lead-acid 30-40 100-300 6-8 65 0.12-0.36 Nickel Zinc 60 >500 5 65 0.60-0.73 NiMH 80 >500 14-16 65 1.20-3.60 Silicate 45-52 >500 2-3 85 0.36-0.42 7.6 Components of Hybrid Electronic Motorcycle

Unlike primary batteries that have a limited lifetime of chemical reactions that produce energy, the secondary-type batteries found in Hybrid Electronic Motorcycle are rechargeable storage cells. Batteries are situated in T-formation down the middle of the car with the top of the “T” at the rear to provide better weight distribution and safety. Batteries for electric cars have been made using nickel-iron, nickel-zinc, zinc-chloride, and lead-acid. Weigh of the Hybrid Electronic Motorcycle has also been a recurring design difficulty. In Hybrid Electronic Motorcycles, the battery and electric propulsion system are typically 18 percent – 33 percent of the weight of the motorcycle, whereas in an internal combustion-driven motorcycle, the engine, coolant system, and other specific powering devices only amount to 25 percent of the weight of the motorcycle. 7.7 Raw Materials of Hybrid Electronic Motorcycle

The Hybrid Electronic Motorcycle’s skeleton is called a space frame and is made of aluminium to be both strong and lightweight. The wheels are also made of aluminium instead of steel, again as a weight-saving method. The aluminium parts are poured at a foundry using specially designed moulds unique to the manufacturer. Seat frames and the heart of the steering wheel are made of magnesium, a lightweight metal. The body is made of an impact-resistant composite plastic that is recyclable.

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Hybrid Electronic Motorcycle batteries consist of plastic housing that contains metal anodes and cathodes and fluid called electrolyte. Currently, lead-acid batteries are still used most commonly, although other combinations of fluid and metals are available with nickel metal hydride (NiMH) batteries the next most likely power source on the Hybrid Electronic Motorcycle horizon. Electric motorcycle batteries hold their fluid in absorbent pads that won’t leak if ruptured or punctured during an accident. The batteries are made by specialty suppliers. The motor or traction system has metal and plastic parts that do not need lubricants. It also includes sophisticated electronics that regulate energy flow from the batteries and control its conversion to driving power. Electronics are also key components for the control panel housed in the console. Plastics, foam padding, vinyl, and fabrics form the dashboard cover, and seats. The tyres are rubber, but, unlike standard tyres, these are designed to inflate to higher pressure so the motorcycle rolls with less resistance to conserve energy. The electric motorcycle tyres also contain sealant to seal any leaks automatically, also for electrical energy conservation. Self-sealing tyres also eliminate the need for a spare tyre, another weight-and material-saving feature. 7.8 Design of Hybrid Electronic Motorcycle

Today’s Hybrid Electronic Motorcycles are described as “modern era production motorcycle” to distinguish them from the series of false starts in trying to design a motorcycle based on existing production models of gasoline-powered motorcycles and from “kit” motorcycles or privately engineered electric motorcycles that may be fund and functional but not production-worthy. From the 1980 – 1995, interest in the Hybrid Electronic Motorcycle was profound, but development was slow. The design roadblock of the high-energy demand from batteries could not be resolved by adapting designs. Finally, in the late 1990s, automotive engineers rethought the problem from the beginning and began designing a motorcycle from the ground up with heavy consideration to aerodynamics, weight, and other energy efficiencies. The space frame, seat frames, wheels, and body were designed for high strength for safety and the lightest possible weight. This meant new configurations that provide support for the components and occupants with minimal mass and use of high-tech materials including aluminium, magnesium, and advanced composite plastics. All extra details had to be eliminated while leaving the comforts drivers find desirable and adding new considerations unique to Hybrid Electronic Motorcycles. An added consideration was the pedestrian warning systems; tests of prototypes showed that Hybrid Electronic Motorcycles run so quietly that pedestrians don’t hear them approach. Among the many other design and engineering features that must be considered in producing Hybrid Electronic Motorcycles are the following:

• Batteries that store energy and power the electric motor are a science of their own in Hybrid Electronic Motorcycle design, and many options are being studied to find the most efficient batteries that are also safe and cost effective. An electric motor that converts electrical energy from the battery and transmits it to the drive train. Both direct-current (DC) and alternating current (AC) motors are used in these traction or propulsion systems for Hybrid Electronic Motorcycles, but AC motors do not use brushes and require less maintenance.

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• A controller that regulates energy flow from the battery to the motor allows for adjustable speed. Resistors that are used for this purpose in other electric devices are not practical for motorcycles because they absorb too much of the energy themselves. Instead, silicon-controlled rectifiers (SCRs) are used. They allow full power to go from the battery to the motor but in pulses so the battery is not overworked and the motor is not underpowered.

• Any kind of brakes can be used on electric automobiles, but regenerative braking system

are also preferred in electric cars because they recapture some of the energy lost during braking and channel it back to the battery system.

7.9 The Manufacturing Process of Hybrid Electronic Motorcycle

The manufacturing process required almost as much design consideration as the motorcycle itself; and that design includes handcrafting and simplification as well as some high-tech approaches. The assemblers work in build-station teams to foster team spirit and mutual support, and parts are stored in modular units called reform racks of flexible plastic tubes and joints that are easy to fill and reshape for different parts. On the high-tech side, each station is equipped with one torque wrench with multiple heads; when the assembler locks on the appropriate size of head, computer controls for the machine select the correct torque setting for the fasteners that fit that head.

7.10 Quality Control

Industry has proven that work stations are a highly effective method of providing quality control throughout an assembly process. Each work station has two team members to support each other and provide internal checks on their part of the process. On a relatively small assembly line like this one for the Hybrid Electronic Motorcycle, the workers all know each other, so there is also a larger team spirit that boosts pride and cooperation. Consequently, the only major quality control operation concludes the assembly process and consists of a comprehensive set of tests and inspections.

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7.11 By-products/Waste

There are no by-products from the manufacturer of Hybrid Electronic Motorcycles. Waste within the assembly factory also is minimal to nonexistent because parts, components, and subassemblies were all made elsewhere. Trimmings and other waste are recaptured by these suppliers, and most are recyclable. 8.0 Strategy and Implementation Summary Hybrid Electronic Motorcycle holds a competitive edge by specialising in low emissions that could offer any competition around the world. Hybrid Electronic Motorcycle strategy will focus on direct marketing to eight regions (Northern America, Europe, China, India, Russia and Eastern Europe, Southern America, Africa and Asia Pacific) motorcycle manufacturers, as well as advertising in magazines. Sales prospect will be finalised in person, over the phone, and via the Internet. As visibility of our motorcycles increases, sales among environmentalists and the younger generation will increase significantly thereafter.

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8.1 Competitive Edge Hybrid Electronic Motorcycle holds a competitive edge by specialising in low emissions motorcycles that could offer any competition. Hybrid Electronic Motorcycle will stand out as the preferable alternative to fossil fuel burning transportation systems. As visibility of our motorcycles increases sales among environmentalists and the younger generation will increase significantly each month thereafter. As word spreads, this rate of increase will maintain steady for at least 15 – 20 years amongst our target market in the younger generation who will continue to grow and develop over time. Furthermore, our motorcycles will readily attract new investment because we introduce the concept of sustainability to individual transportation systems by bringing fuel efficiency, economy of size, and environmentally friendlier alternatives to the market. As the central distribution point of environmentally friendlier motorcycles, Hybrid Electronic Motorcycle will bring unparalleled know-how and will also aim to serve as a clearing house for product innovations and design patents. 8.2 Marketing Strategy Hybrid Electronic Motorcycle media strategy will focus on direct marketing to eight regions (Northern America, Europe, China, India, Russia and Eastern Europe, Southern America, Africa and Asia Pacific) motorcycle manufacturers, as well as advertising in magazines marketed to

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automobile enthusiasts, engineers, hobbyists, mechanics and scientists, and through good ratings in consumer protection reports. Hybrid Electronic Motorcycle provides a solid foundation of connections for future marketing ventures. 8.3 Sales Strategy The sales strategy of Hybrid Electronic Motorcycle will optimise selling by focusing on serving the immediate needs of the customer – foster the “motorcycle pioneer” image, individual transportation, reducing dependence on fossil fuels, and minimising the motorcycle’s impact on the environment. Informed by the customer’s immediate needs, our sales team will focus on informing the customer of the benefits to driving our motorcycles. Prices, delivery and conditions of sale are negotiable within the bounds of profitability. 9.0 Budget for pre-commercial release prototype and low rate production line Pre-commercial release prototype (6 units and 2 models- one in 50cc and another in 120 cc) and “low rate production line” (<100,000 unit /year)

• Total estimated budget: US$4 – US$4.5 million (for China standard) or • Total estimated budget: US$5.5 – US$6 million (for EU standard)

10.0 The production line equipments will include the following items:

• Complete test equipments for final assembly line (especially to test all the hybrid function)

• Complete wheel motor hub moulds and test equipments for low rate production (100,000 units/year)

• Complete hybrid ECU moulds and test equipments for low rate production (100,000 units/year)

• Complete Electronic differential device moulds and test equipments for low rate production (100,000 units/year)

• Complete Battery Management system moulds and test equipments for low rate production (100,000 units/year)

• Complete Battery charger moulds and test equipments for low rate production (100,000 units/year)

• Complete motion controller moulds and test equipments for low rate production (100,000 units/year)

11.0 Hybrid motorcycle process production

In continuous process plants require emphasis on real time control and appropriate incident handling, while the planning is mostly reduced to pure scheduling as the sequence of operations is typically predefined. Such systems are linear and have no or very limited storage capacities between processors. Therefore, the planning can be reduced to the selection of current processor capacity from the range values restricted by the maximum capacity of the bottleneck element for each element of time. The production line technology constrains – e.g. lead time, preparation and cleaning time and capacity limitation at start-up or shutdown – needs to be naturally considered.

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The main concern of planning and scheduling in both above cases is to ensure that the system capacity, defined by a well understood physical bottleneck is used efficiently and ensure that the production costs are globally minimized. Therefore, the main emphasis is put on scheduling and the planning is typically highly centralized. The motorcycle industry operates in high volumes and on low margins, thus it focuses a lot of attention on process optimization. Such optimization can be specified by the following generic requirements:

• Minimize the stock through the production chain, thus decreasing the financial and storage costs.

• Maximize the production uniformity, to be able to use the industrial means in an efficient manner and to avoid overtime cost.

• Minimize the unnecessary handling of products between successive steps of the production process to further reduce human resources and other manipulation related costs.

• Allow the integration with production surveillance and management tools. • Allow real-time or near to real-time re-planning in case of demand changes or production

anomalies. • Allow easy and straightforward process reconfiguration in the future.

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12.0 Maintaining A Successful Process