For a long time, inventors and entrepreneurs have seen golden opportunities in the developing world. The idea of a people’s car for poor regions has come up perhaps more times than anyone can count. The little pickup truck on your screen was another one of those ambitious ideas. The World Transport Authority WorldStar was supposed to be a cheap truck with minimal parts assembled out of turn-key factories anywhere in the world. But the U.S. Securities and Exchange Commission says the man who ran the business was the perpetrator of a scam.
Even if the venture wasn’t entirely kosher, the World Transport Authority was able to build some of its supposedly revolutionary trucks. One of them is currently for sale in Raynham, Massachusetts for $10,000. The seller claims it’s just one of two left in existence and it has a Volkswagen drivetrain.
That sent me for a spin. At first, I thought this was just a weird custom. However, the possibility of more than one of these existing gave me the gut feeling that there’s a whole story here. Apparently, this is only the tip of a frankly insane iceberg.
The Truck To Change The World
The story of the WorldStar pickup is similar to so many “world changing” ideas we’ve heard of before.
I don’t have all of the pieces of the puzzle, but I found all of the important parts. In 1996, Douglas Norman formed the Composite Auto Research Corp in Canada and started marketing his vehicle under the World Transport Authority (WTA). This company would be incorporated in El Cajon, California in 1998 under Norman’s name. Norman’s vehicle? None other than the cutie WorldStar.
According to the San Diego Business Journal, Norman had a history of customizing racecars and operating a boat manufacturing plant for decades, but noticed that his skills were perhaps put to better use saving the world. Norman took note that there were about 5 billion people on the planet without dependable transportation. The World Transport Authority was founded to provide these countries with an affordable and simple vehicle, the WorldStar.
The truck still sounds too good to be true. It was to feature a body made out of simple glass-reinforced polyester mounted to a tube steel frame, with flat-four power via a Volkswagen Beetle engine that could run on either propane or gasoline at just the flick of a switch. And it was to be a purely mechanical machine with the most minimal electronics required for the electrical bits – no computers, no chips, and a minimum amount of metal to corrode. The World Transport Authority said the trucks had just 430 moving parts and were so easy to construct that they would be built locally using only semi-skilled labor to the tune of 100 to 200 hours per truck.
Oh yeah, the whole production system itself was supposed to be revolutionary. WTA said its micro-factories were modular and included a metal shop, a trim shop, and a mold shop. Developing countries were supposed to be able to install these factories for just $400,000 and in no time flat they’d be developing WorldStars. The truck was also supposed to be modular, allowing for body styles including trucks, vans, ambulances, or taxis.
WTA sweetened the deal by saying a WorldStar would cost less than $7,200 to buy, go where there aren’t roads, run on four different fuels, and be such a boon to the local economy that it would help developing areas out of poverty. Later, WTA would claim a partnership with Zastava, so there could have been WorldStars with different engines out there.
WTA’s website advertised the WorldStar as being something of a modern Ford Model T and Volkswagen Beetle. But the WorldStar was built specifically for developing countries by being built to survive rugged environments while also being able to carry 1,250 pounds of whatever you could fit in the bed. Sounds great, right?
Something’s Fishy
If you read the company’s press releases, you were probably certain WTA was soon to become a household name. The company even went public.
Each of the company’s press releases made some kind of bombastic claim. In 1999, WTA claimed it took the WorldStar to Texas A&M University, where the truck was slammed into a concrete loading dock at 22 mph. WTA then said the university slammed a Ford sedan into the side of the WorldStar at 40 mph. The company claimed the only damage to WorldStar from the loading dock crash was a broken hood hinge and a broken hinge strap and no other damage. Oh, and the damage from getting T-boned by a Ford? Just a crack in the fiberglass. The Ford was said to have been totaled.
WTA then claimed that a Texas A&M instructor told the company: “The WorldStar is the most rugged and durable vehicle we have ever crash-tested. No one at the crash-test site in Texas believed the WorldStar was anywhere nearly as strongly built as it definitely proved to be. It is one very tough pick-up.”
Mind you, this is a truck built out of fiberglass and tube steel (above) for developing nations. Yet, WTA wanted you to believe you could slam a larger Ford into it at 40 mph and the WorldStar would take it as if nearly nothing happened.
Other press releases claimed that WTA closed deals with Central America, South America, Colombia, Philippines, Angola, the Far East, Costa Rica, Africa, Senegal, India, Jordan, Syria, Lebanon, China, Guinea, and so many more places. If you took all of the press releases for truth, it looked like WTA was achieving its mission to put the world behind the wheel of a WorldStar. You’ll note that my list above isn’t just individual countries, but whole continents. And we weren’t talking about singular factories, either, but WTA claiming these regions were buying up licenses for several factories.
There are photos out there showing a number of WorldStars built from trucks to vans. It’s unclear what happened with these vehicles or just how many were delivered in their target markets. WTA said it was targeting a whopping 189 nations. Allegedly, the company spent $3.44 million developing these things, too.
The Sham
Clearly, some of these claims rang as too good to be true as the U.S. Securities and Exchange Commission filed a civil action against Douglas Norman in the United States District Court for the Southern District of New York on February 21, 2003.
In the suit, the SEC alleged:
Defendant, Douglas Norman, obtained illicit profits of at least $1.8 million through a “pump and dump scheme” that promoted the common stock of World Transport Authority (“WTA”), a company that purports to have a design for both a low-cost motor vehicle called the WorldStar and the facilities needed to manufacture it. During 2000 and 2001, from a position of authority in that company, Norman knew and approved of materially false or misleading statements about WTA, which appeared in press releases, Internet messages, and elsewhere. Norman also caused WTA to file materially false or misleading periodic reports with the Commission during those years. Norman’s campaign of deception inflated the price of WTA’s stock, thus generating illicit profits for him when he sold WTA shares. Norman’s scheme also violated other registration and reporting provisions of federal securities laws.
By engaging in the conduct alleged herein, Norman directly or indirectly and as a controlling person of WTA, violated antifraud, reporting and registration provisions of the federal securities laws. Unless this Court enjoins Norman, he will continue to engage in conduct similar to that described in this Complaint. The Commission, therefore, requests that this Court issue an order permanently restraining and enjoining Norman from directly or indirectly violating the aforementioned provisions of the federal securities laws.
That sounds rather shocking, but then the SEC explains how it went down:
WTA’s core business was promoting the sale of the “WorldStar,” a small motor vehicle, and a system to manufacture it. WTA’s literature claimed that the WorldStar was uniquely suited to underdeveloped countries because its body resisted corrosion and because it used fewer than 500 moving parts. WTA literature also claimed that, in about 90 days, one could establish a “micro-factory” or “factory in a box” to manufacture the WorldStar. It also stated that one could establish such a factory with a small capital investment and that such a factory could produce one vehicle per day.
To carry out its business, WTA issued “Master Licenses” that gave a Master Licensee an exclusive marketing territory, typically covering one or two countries or a geographic region. The Master License granted the licensees “the right and responsibility” in their territory to promote the WorldStar and issue “Manufacturing and Distribution Licenses” to sub-licensees, who would actually build and sell the WorldStar vehicle. WTA based the price for a Master License on the population in the exclusive sales territory. The fee to obtain a Master License often exceeded $1 million. However, WTA typically did not require a Master Licensee to pay that fee upon issuing such a license. WTA permitted Master Licensees to make installment payments after they entered subordinate Manufacturing and Distribution Licenses.
WTA’s Master Licenses typically required the Master Licensees to charge $372,000 for each Manufacturing and Distribution License and pay that amount back to WTA. Of the total $372,000, WTA treated $112,000 as an installment payment on the Master License, and the remaining $260,000 was to pay for establishing a “micro-factory” and manufacturing supplies.
The SEC continues that WTA also claimed that it would make earnings through the sale of vehicle parts and manufacturing materials as well as royalties on the sales of the WorldStar. Sadly, as the SEC points out, the license program wasn’t successful with the SEC saying “Most of WTA’s licenses never went beyond the announcement stage,” and that WTA sold only a handful of WorldStars.
Despite this, the SEC says, WTA published false or misleading press releases and listed out 15 instances of such. You don’t have all day and I don’t either, so click here if you’re interested in reading the allegations. The SEC continues:
The revenue projections, estimates, and valuations in press releases concerning license agreements lacked any reasonable basis for several reasons. At a minimum, it was unlikely that sale of any Master License or Manufacturing and Distribution License, if it led to production and sale of any vehicles, would do so quickly enough to fulfill the revenue projections, estimates, and valuations in WTA’s press releases. In addition, WTA’s press releases were misleading because they described the Master License fee as a fixed amount although the Master Licenses did not unconditionally commit licensees to pay any fee at all.
Somehow, it doesn’t even end there as the SEC continued to accuse WTA of making things up:
On or about October 6, 2000, WTA’s Internet consultant posted on “RagingBull” a statement quoting Norman as saying that WTA would see revenues from its September 2000 China license agreement in “months, a few months.” (See ¶ 26, above, quoting WTA’s press release of September 13, 2000 valuing this Master License at $900 million.) WTA’s “Internet consultant” also reported that Norman said, “The Q reports will soon reflect the dramatic increases in cash flowing into our company.” Norman knew, or was reckless in not knowing, that these statements were false or misleading. Among other things, the China licensee had not yet placed an order for a factory.
On November 10, 2000, WTA’s Internet consultant posted on “RagingBull” a statement quoting Norman as saying, “We [WTA] are averaging 1 micro-factory every 12 days” and that micro-factories in India would be producing WorldStar vehicles within six months. Norman knew, or was reckless in not knowing, that these statements were false or misleading. Among other things, WTA had no factory orders and lacked the resources to produce factories.
On December 13, 2000, WTA’s Internet consultant posted a statement on “RagingBull” quoting Norman as saying that, “[the Philippine facility had] orders for cars to keep them busy for the next 6 months.” Norman knew, or was reckless in not knowing, that this statement was false or misleading. Among other things, the Philippine government had not yet approved sale of the WorldStar in the Phillipines.
I think they call that a “big yikes” in this industry. This lawsuit was filed early in 2003 and in response, Douglas Norman resigned from WTA in March of that year. It came only a few months after WTA claimed to be in negotiations to obtain substantial ownership in Hydrogen-on-demand extraction technology.
Things didn’t go so well for Norman. In 2005, SEC v. Douglas Norman concluded with the Court entering a Final Judgment against Norman for running a pump-and-dump scheme. Norman was ordered to pay a disgorgement of $1,800,000 and prejudgment interest of $382,883, plus civil penalties of $1,800,000. As if a $3.9 million hit wasn’t enough, Norman was banned from being an officer of a public company and from participating in any offering of penny stock.
[Editor’s Note: That’s a great use of the legendary box taillight there, seen on Jeeps and trucks and trailers all over, and it’s probably also worth noting that an air-cooled VW flat-four used by a non-VW company up front to drive a pickup truck or van has some precedent. Ever heard of the Tempo Matador? Same basic idea. – JT]
As for WTA, it tried to clean up its image and continue without Norman. The company reorganized its structure and then published a few more press releases detailing a down payment for a $3.4 million sales order and three WorldStar demonstration vehicles shipped to manufacturing subsidiary Millennium Autotech International Corporation in the Philippines.
That said, things started falling apart for the company. The California branch of WTA shuttered in 2004 but WTA’s Wyoming branch continued to operate until 2010. The SEC revoked WTA’s registered securities in 2010. I haven’t found much of what went on with WTA past those 2004 press releases. The company’s site went offline sometime in 2004.
This WorldStar
That leaves us with the little guy we see today. The seller says that it’s one of two left in existence, though there’s no way of knowing for sure. It is, however, definitely a rare ride.
According to the seller, the engine is a 1600cc flat-four from a 1974 Volkswagen Beetle. That should be good for about 47 HP and there’s a four-speed manual in there as well. Note that the VW drivetrain is now up front and its components are reversed!
[Editor’s Note: I’m not this is a ’74 engine. That looks like a generator instead of an alternator that a ’74 would have had, and I can’t quite make out if it’s a dual-port engine from the photos. I think this could be a ’68-’70 engine, just fair warning for anyone who buys this incredible machine. – JT]
Amazingly, WTA managed to fit the WorldStar with rack & pinion steering and front disc brakes. However, this was a vehicle designed for developing countries, so you don’t get heat or air conditioning. Sadly, the seller doesn’t say anything about how this vehicle is still around, but says it’s gone all of 12,000 miles in all of 25 years. Apparently, the little VW powerplant gets it up to 70 mph.
The price for this weirdo is $10,000, which is a lot for what’s essentially a one-off cheap car from a disgraced company. The good news is that the VW powertrain means keeping the thing alive shouldn’t be too hard. The bad news is good luck replacing any WTA-specific parts.
One thing I can guarantee is that if you do buy this World Transport Authority WorldStar, you’ll have a classic car that you can be sure basically nobody else will have. And now you’ll be able to tell the wild story of why you have an absurdly rare car, too.
(Images: Mark N, unless otherwise noted.)
I almost skipped reading this article, but since I love weird obscure cars I’m glad I didn’t. I’m also obsessed with VINs and VIN theory so I had to dig a little deeper. Surely this little thing couldn’t have records with the NHTSA?
Oh but it does.
On October 11, 2000 a VIN decoding document was filed with the NHTSA by Lyle Wardrop, “President and Owner” of WTA, for the WorldStar vehicle. WTA’s WMI is 1W9/303, and per the coding supplied the VIN on the featured vehicle would presumably be 1W911082*Y1303*** (assuming Model Year of 2000=Y). Unfortunately since the seller has covered the license plate for some unfounded fear we will all find out where he lives or something, we do not know which serial numbered unit this is, buy I’m absolutely DYING to find out now.
It’s possible using that base VIN structure to webscrape and find out how many others, if any, WorldStars might have registration data in the US. What would be even more fascinating to me would be registering this with your state’s DMV, and trying to explain to an insurance company just what the hell you have.
Amazingly, this site will actually correctly identify the above assumed base VIN structure as a WTA MPV: Check Any VIN – It’s Free | Free Vehicle History and VIN Check
Were these ever sold to the public? How? Why? Is the seller someone who was associated with WTA? Is the seller Douglas Norman?
Even more fascinating is that the VIN coding document has provision for an electric variant!
ORG795 (dot.gov)
That’s a single-port motor, so it’s most likely a 1500cc. Oddly, it has an alternator fuel pump, tipped to the left to clear an alternator. The crankcase breather situation is troubling.
If I were younger, I’d buy it, just to run it through Mecum to see what it would bring. I’m betting it would go for $30k at Mecum.
Gotta love the PVC water pipe lumber rack. That should work very well until you put something like lumber on it.
In the photograph showcasing the legendary box taillights it looks like somebody added a badge on the rear bumper that says “Klown Car” *eye roll* Is that a case of so-called boomer humor on par with people putting giant wind-up key handles on the back of old Minis and other small cars? In the late 90s somebody local had a BMW Isetta sadly saddled with such a gag. (It was a BMW, so a later iteration than the other local Isetta of missing parking valet fame.) Yeah, it’s a huge pet peeve, when people assume cars to be toys or clown cars just because they’re smaller than most cars typically driven by ‘Muricans.
“Was reckless in not knowing” is pretty damned harsh for the SEC. Big yikes indeed!
That’s a single port. Could be an industrial unit. It also has an alternator style fuel pump.
From pre-fab housing to pop-up village solar generators to cheap all-terrain transportation, you are never sure if these third world saviors have good intentions or realize that altruistic schemes are easy sells.
Or overpriced “anti-poaching” ebikes from Cake.
Or miniature self-contained nuclear reactors
When I worked across the street from a middle school in a rough neighborhood, the boys would always yell out “WORLD STAR!” when a fist fight broke out for reasons unrelated to this truck.
Seems like he made a couple of rookie mistakes.
(1) not being a billionaire to start with. Being a billionaire already allows you to pump and dump your own stock, resulting only in a small fine and some twitter babysitting for a while.
(2) not charging people a small fee to be on the waiting list. Then he could have treated those waiting lists like actually pending sales.
(3) Keep announcing that the features/vehicles are coming “next year”, in perpetuity. You haven’t failed to deliver as long as you keep promising “next year”.
Frighteningly accurate
It looks like it should have floppy ears and be covered in fur.
Oh, wow, this is it – ca 25 years ago, I remember catching a small part of a story on one of the TV news magazines (Dateline NBC, 60 Minutes, 20/20, not sure which), about some guy who was accused of running around conning people into investing in his new startup car company marketing a light truck for the developing world, but I tuned in too late and didn’t get enough details, and had a hell of a time trying to figure out which company they were talking about. For some reason, I was stuck thinking it was somehow SsangYong based, and that was a dead end .
This ends the mystery, the WorldStar is absolutely the vehicle they showed, recognize that front end immediately. That had been driving me crazy for years
For something SsangYong based, you might be thinking of the Phoenix SUT, based on the chassis and body of the SsangYong Actyon Sports.
No, it wasn’t that, that was about a decade later, I had been thinking it was maybe the Korando
Reminds me of the old Africar debacle.
That was my first reaction, followed by “they ripped off the Dodge Ram front styling “
The Dodge M80 concept
https://preview2.netcarshow.com/Dodge-M80_Concept-2002-ig.jpg
I’m pretty sure there has to be a third WorldStar out there somewhere.
It’s weird that this second worldstar is in Russian colors and not Soviet. Maybe they were unusually prescient in that?
The exhaust routing is madness!!
It reminds me of the Panhard PL17, which attaches its engine mounts to the exhaust.
It looks like a prototype intended to replace the Grumman LLV.
It seems like it could have been viable, if it was handled better. Except for the part about using a drivetrain that’s 80 years old, has been out of production for 20 years, and the company didn’t have a license to build.
That engine was in production in Brazil until 2006 and in Mexico until 2003, so it was very much available new at the time this scam was in process. Presumably, if it had been legitimate and resulted in a huge business opportunity, Volkswagen might have been persuaded to keep one of the lines open past 2006 if the business case was really strong. Or at least sell the tooling
I coulda BEEN somebody. I coulda been a Contender. But you hadda go braggin’ and makin’ stuff up about me. So instead I’m for sale on Facebook in some podunk town, and worth even less than I was last year.
The price is lower but I suspect the worth is unchanged.
Oh yeah all of that seems totally legit
Best I can do is three fiddy…
The price has come down from $15,000 less than a year ago:
https://barnfinds.com/one-of-a-kind-1990s-worldstar-pickup/