The UK-based vehicle transmission specialist Antonov provided its shareholders with an update this week on its business strategy as it moves into the next stage of the commercialization of its business. The revised strategy places greater emphasis on generating short term revenues in order to reduce the level of ongoing fundraising required to support products with a longer development cycle.
Key elements of the revised plan include:
Primary focus on products with a shorter time to market, for example, Antonov 2-speed applications (earlier post);
Securing commercial engineering projects with both automotive and non-automotive customers, using core competencies and technologies; and
Continued support of products with a longer time to market, such as its 6-speed automatic transmission.
Antonov already has a prototype 6-speed transmission demonstrator operational in China and, along with its strong long-standing government contacts, will continue to explore potential manufacturing partnerships in the Chong Qing region and develop guarantees for part of the necessary funding.
In the meantime, the company will continue to manage the level of ongoing project investment within available funding and resources, which it currently obtains through the issue of new shares under existing financing arrangements.
Antonov has already taken steps to reduce annual costs by more than £1 million (US$1.4 million), in addition to the reduction of more than £0.5 million (US$0.72 million) already achieved in October 2008. Almost half of the cost reductions have been achieved by reducing the number of employed and contracted staff; the remaining reductions will be achieved through savings across a broad variety of other operating costs.