A Supercharged Opportunity

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A Supercharged Opportunity
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Callaway Cars Mission

• To find a select body of fast car enthusiasts who
  will join Reeves and his team to excite
  customers, make money and have fun doing it.
• Agreement Raison detre
• Both parties are joined together to deliver
  Seriously Fast Callaway Corvettes to discerning
  customers, giving them the highest standards of
• Product knowledge
• Vehicle demonstration
• Product service

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Callaway History
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Todays Callaway Corvette Products
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Callaway Corvette Opportunity

• A Seriously Fast Corvette
• Halo car with 580 bhp
• Any body style, any transmission (except Z06)
• Distinguishes store as the Corvette specialist
• Promotes positive word-of-mouth among Corvette
  owner groups
• Incremental sales / Incremental profits
• Select retail partners only
• One price selling philosophy
• Callaway Corvette package
• At launch 18,100 with 2,200 margin
• From Q2 2008 19,500 with 2,400 margin -
  includes unique Callaway wheels
• Additional opportunities
• Packages available (e.g., brakes, suspension,
  carbon/magnesium wheels, interior group)
• Performance parts program, e.g. Honker cold air
  intakes, shifters, exhaust systems

Callaway advantages
Spec
Spec
Power Value
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Callaway Corvette

• Standard equipment includes
• Engine output 580 bhp
• Intercooled Roots-Style Supercharger with liquid
  chrome housing
• High Flow Fuel System
• Callaway Honker Induction System
• Callaway Double-D Exhaust System
• Callaway Expert PCM Recalibration
• Callaway C16 Hood with Supercharged Emblems
• Callaway Body-Color Injector Covers
• Callaway Door Sill Panels
• Callaway Corvette Authenticity Documentation
• Callaway unique styled wheels (from Q2 2008)

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Callaway Packages
Standard
Options
PLUS OTHERS, e.g. Carbon Wheels, Clutch
Flywheel Package, Deutschleder Interior Group and
Sport Seat Package
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Warranty

• Callaway-Installed Components
• 3 year / 36,000 miles transferable
• Remainder as GM

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Retail Partners Planning

• Retail Partner Year One sales goal 2 per month
• Relate to standard Corvette Z06 volumes
• Constrained by the need to supply each Charter
  Retail Partner
• Representation Strategy
• Organic growth in line with 2 per month per
  Retail Partner target
• Likely to be around 20 nationally 12 months after
  launch
• In subsequent years add points in high potential
  markets and for service coverage

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Retail Investment

• Initial Ordering
• Two vehicles including demonstrator (keeping a
  current demonstrator is a key requirement)
• Parts Kit Approximately 500
• Special Tools None i.e. as GM
• One Designated and Callaway trained sales
  specialist
• Training travel expenses to be met by retail
  partner
• Must have access to high speed internet in store
  to share with customers for videos, configurator,
  Callaway news etc.
• One Designated and Callaway trained technician
• Training travel expenses to be met by retail
  partner
• 2 days training in Old Lyme, CT.
• Identification program
• Callaway interior wall plaque
• Link to Callaway on dealer home page
• Use of Callaway logo on stationery business
  cards

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Supply Chain Plan

• Customer/retail partner specifies Corvette
• Signed quote - 50 deposit due to Callaway -
  balance due on completion.
• Retail partner stock, pipeline diversion or
  customer order
• Drop shipped or re-shipped to GM dealer in CT or
  CA
• If coming from retail partner stock then partner
  responsible for re-ship costs
• Remember to allow Bowling Green build to
  drop-ship time
• Callaway build program
• 2 weeks from receipt
• Shipment back to you
• FOB Old Lyme, CT costs bourn by retail partner
• Allow at least one week
• Covered transportation recommended

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Next steps