SOURCE: Ronn Motor Company

Ronn Motor Company

August 11, 2009 08:00 ET

Ronn Motors Signs Sales and Marketing Contract With World Wide Green Lubricants

3.5 Million Gallons in Annual Sales for Ronnzoil Oils and Lubricants Within First Year Predicted by WWGL

AUSTIN, TX--(Marketwire - August 11, 2009) - 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. Many government mandates are already in place to "Go Green" as quickly as possible, giving biodegradable and environmentally friendly products the preferred purchasing preference, providing Ronnzoil Premium Green Oil Club a much larger potential customer base.

WWGL will ensure the success of the Ronnzoil Premium Green Oil Club Program by going to market with incentives and value added programs included in the base oil price. These will include consumer education on the superior product quality, as well as both roadside assistance and an extended engine warranty renewable with every oil change.

World Wide Green Lubricants, LLC is a registered Louisiana limited liability company, specializing in the oil services industry, focused on providing for the comprehensive needs of business and individual automobile owners wanting an environmentally friendly, bio-degradable oil alternative that will also improve engine performance and enhance the life of the engine. With a core staff of experienced professionals and a team approach to its projects, WWGL provides increased brand recognition, brand credibility and a proven quality product, more so than any of its competitors.

Headquartered in Horseshoe Bay, Texas, Ronn Motor Company, Inc. is a design and manufacturing company focused on the leading edge engineering of environmentally friendly, finely built premium automobiles and technology. These systems include Hydrogen Fuel, Fuel cells, and Plug in-electrics. These features, coupled with RMC's core values of a strong sense of ethics, environmental sensitivity and premium quality, positions the Company as one of the new leaders in an automotive industry transitioning toward fuel efficiency. For more information, please visit www.ronnmotors.com.

This release contains forward-looking statements that reflect Ronn Motors plans and expectations. In this press release and related comments by Company management, words like "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions are used to identify forward-looking statements, representing management's current judgment and expectations about possible future events. Management believes these forward-looking statements and the judgments upon which they are based to be reasonable, but they are not guarantees of future performance and involve numerous known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements.

Contact Information

  • Ronn Motors Investor Relations Contact:
    The Eversull Group, Inc.
    Jack Eversull
    972-378-7917
    972-378-7981 (fax)
    Email Contact