Word Transport Authority Details $2.6M South American Sale
18 June 1999
Word Transport Authority Details $2.6M South American Sale
EL CAJON, Calif.--June 17, 1999--Comp. Automobile (OTC Bulletin Board:CARHF) World Transport Authority (WTA), a wholly-owned subsidiary of Composite Automobile Research, Ltd. (OTC BB: CARHF) announced today details of the sale of the "Master License" for the countries Panama, Venezuela, Colombia, and Ecuador to WorldStar Andino, Inc. of Columbia, for $2.625 million.Senor Carlos Ronderos Torres, former Minister of Trade for the Republic of Colombia, is general manager of WorldStar PAEZ, S.A., the Manufacturing and Distribution license holder under agreement with WorldStar Andino. PAEZ, outside of Cali, Colombia, provides substantial tax relief considerations for new businesses coming into the area.
The Colombian central government has endorsed the deal, which will provide the first South American automobile factory owned and operated by local citizenry for sale to local citizenry. Colombia, Ecuador and Venezuela are "Andino Pact" nations that allow for duty-free import of automobile parts and most components.
The WorldStar Vehicle, in four configurations, represents four years and $3.44-million of investment in research and development to produce a highly resilient composite automobile that can be easily manufactured using locally available labor in emerging-world nations. The vehicles are produced under distributed manufacturing licensing agreements with local entrepreneurs in the nations in which the vehicles are sold.
Standardization and quality control are built-in to the "cookie-cutter" facilities delivered to site locations "ready-to-install," under the supervision of WTA engineers who train key personnel in all facets of manufacturing of the unique automobiles. The Company provides ongoing training and management information support to the local factories, and controls all inventory delivery of raw materials and components parts.
The Company is strategically positioned to satisfy the rapidly emerging requirement for reliable transportation in geographic regions ignored by major auto manufacturers such as Ford , Chrysler , and General Motors
WTA has completed its research and development cycle and is operationally profitable entering its production and marketing stage. The Company has no debt.
WorldStar Andino has entered into a letter of intent for the purchase of a factory for installation near Panama City, Panama. A feasibility study is underway currently. WorldStar Andino is current with all payments to WTA and is in negotiations to provide fleet vehicles to a major cargo carrier in the region.
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by and information currently available to the Company at the time such statements were made. Actual results could differ materially from those included in such forward-looking statements.