I went to RCR this week to pick up my SLC, and spent quite a bit of time talking to Fran about the Apex situation. As you read what follows, keep in mind that my professional background includes analyzing why companies grow and prosper, chug along at about the same production level, or end up ultimately failing and going out of business.
I drove up to RCR pulling a trailer with a ’99 Eclipse which I had bought because it had never been hit, had no rust, and a nice interior. It was an automatic with the undesirable 420A motor. Yes, this SLC buyer had also signed up for an Apex! We’ll get back to this seeming incongruity later…
Before I even got a glimpse of my SLC, Fran drove me off-site to a cluttered warehouse facility where various RCR bodies such as a D-type were in various stages of finish sanding (some of you know what a fiberglass shop looks and feels like), and there sat a complete Apex body bonded to an Eclipse center section.
The car is GORGEOUS.
We then spent a lot of time talking about the future of the Apex project and Fran’s current internal dilemma about the car. He was quite candid about the fact that other recent and near-future RCR offerings, particularly the LMP-1, have been so exciting that his passion for them has overshadowed his interest in the Apex. As he put it, “I LOVE the SLC and the LMP-1. I LIKE the Apex, but it doesn’t give me the same thrill when I think about it as those two cars do. And I’ve already spent a ton of money on development, but I can’t afford to continue if I have to build and sell five hundred units just to get back my development costs. That’s time I could spend building more of my existing cars where the development costs have already been paid off.”
We then talked about product development, and the irony that a car like the devastatingly potent LMP-1 was considerably easier and less expensive to design and bring to market than the entry-level Apex. Consider: The body of the LMP-1 meant splashing a mold from an original Cadillac race car, whereas the Apex required making a full size clay model from scratch (just like GM does when they design a new car) before a mold could be made. The LMP-1 chassis is very similar in design to the SLC, GT40, T70, etc. in terms of using the same square, rectangular, and flat aluminum material, just with different dimensions to end up with proper chassis stiffness, wheelbase length, and track width. The Apex required Fran to start completely from scratch. I believe that JUST THE BODY of the Apex has consumed more of Fran’s money (in development costs to build the first unit) than the ENTIRE LMP-1 program!
Fran’s problem is that the whole purpose of the Apex was to keep the price low enough to bring in buyers to RCR/Superlite that are not (yet) prospects for a $90,000 fair-weather toy. These are people who CAN afford to spend $25,000 (all-in) on a custom car, but a roadster-only design (like a Cobra replica or FF 818) means it’s $25,000 for something that’s still a toy.
This, I have thought from Day One, was the genius of the Apex: By using the Eclipse center section, with OEM doors, windows, and interior, you ended up with a high performance mid-engined custom car that was weatherproof, as secure against theft or break-in as a factory sedan, and had the finished interior look and feel of a “real” car.
Fran said “You really LIKE the Apex, don’t you?” He was referring to the odd notion that an SLC purchaser would be lobbying so hard to keep the Apex alive.
“Compared to my SLC?” I answered. “No. No contest. But back when you first told me about it, I thought your design concept of taking an Eclipse, putting the drivetrain in the back, giving it killer brakes and suspension, and a drop-dead gorgeous body, was pure genius. I’m not a turbo four guy; I like the power delivery, sound, and feel of a V-8. I saw the Apex as the perfect way to get the younger turbo four guys into the RCR fold. But as soon as you told me RCR would support the LS4 drivetrain in the Apex, I found an engine/trans combo out of an Impala SS for $2000 and ordered an Apex. This will be a car I can leave parked at the Multiplex for the day while I attend the Sam Peckinpah film festival, or toss the keys to one of my girlfriends for her to go peacocking in it. There’s no way either of those things is ever going to happen with my 740 horsepower SLC.”
Fran started thinking out loud, and said the Apex could keep its $19,995 price point and earn back its development costs in 30 units instead of several hundred if the kit used customer-sourced late model Corvette suspension and brake components. I asked if the car could be designed to handle almost as well with these pieces instead of custom ones.
“Exactly the same. It’s just a matter of putting the pick-up points in the right place.”
“Well, there’s your answer. That stuff’s all over, and the customer can either find it himself, or you can sell him new pieces at cost, his choice.”
Fran was thoughtful. “Even though other people have been successful doing it, I’m not wild about the idea of used parts in an RCR/Superlite product.”
“You’re already doing it,” I reminded him. “The D-type uses XJ6 front suspension, and a solid rear axle out of something-or-other.”
“But that’s my first front-engined car...”
“What does the engine location have to do with anything? And if you think about it, you may be already doing it with the SLC as well. The standard brakes in the SLC kit have “Chevrolet” cast into the calipers—they’re ZO6 units, right? On my SLC, I could have insisted you give me a brake delete credit, and I could have gone to one of my Corvette racer buddies and swapped him some ammo or fireworks or books or something for some ZO6 take-off calipers and rotors, and my SLC would be just as good a car as it is with you supplying all new parts. Is anyone going to care if the fuel pump or oil tank in my SLC came off a wrecked Sprint car? I don’t think so.” I could see the wheels turning…
“Look,” I went on, “there will probably always be enough guys out there every year for RCR to stay in business at a decent profit with your existing product line of cars that cost $75,000 and up to build. But if you get a bunch of guys building Apexes, in a few years you’ll have a lot more people ready to step up to the high-end stuff. They will be either Apex builders that had additional financial success, or more-affluent people who learned about RCR when they saw an Apex and asked about it and the designer.”
I thought of something. “Like RCR’s upcoming $63,000 kit, which will weigh 3100 pounds when completed. The $63,000 kit price includes a Graziano AWD Audi transaxle with 2.36:1 ring and pinion. We’re talking, of course, about the 2015 RCR Veyron replica. Customer supplies normal Z-rated tires and 1000 HP turbo LS motor. All-in cost: One tenth of the original.”
Does this sound like a good plan, Fran?
JR
[Author’s Note: Keep in mind that I am a novelist. In this recounting, I have taken a few literary liberties with the dialogue and may be leaving the reader with the impression that I talked Fran into proceeding with the Apex. I didn’t. I don’t know if Fran is ultimately going to scrap the Apex or not, but I know that he is listening to serious potential buyers, and he seems to be leaning in the direction of keeping to the stated kit price and leaving out the parts the customer can easily get elsewhere.
What I CAN tell you without any hype is that Fran has three Apex bodies in hand, he has one other customer who has ordered an Apex (set up for 4G63T, I assume), he has my LS4 Impala drivetrain at his shop, he had Vickie type up a 50% deposit invoice on an Apex for me, and I paid that invoice on Thursday. So there will be at least two Apex cars running around getting potential customers excited.
Oh, and I completely made up that stuff about the 2015 RCR Veyron replica. The truth is, I have no idea what year it will be released…]
