Management's Discussion and Analysis or Plan of Operation.

This Quarterly Report on Form 10-QSB, including the following management's discussion, analysis, and overview contain forward looking statements that are not statements of historical fact and may involve a number of risks and uncertainties. These statements relate to management's analysis and other information that is based on forecasts of future results and estimates of time lines, etc., that are not yet determinable. These statements may also include references to our future plans, prospects, and business strategies.

These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "intends," "should," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The safe harbor provisions of Section 21E of the Securities Exchange Act or 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made in this report. You should not place undue reliance on forward-looking statements. Forward-looking statements involve risks and uncertainties. The actual results that we achieve may differ materially from any forward-looking statements due to such risks and uncertainties. These forward-looking statements are based on current expectations, and we assume no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the Securities and Exchange Commission, including the following factors that may cause actual results to differ materially from our forward looking statements:

1.

The general global economy and industry conditions

2.

Our limited operating history

3.

Industry competition

4.

Environmental and government regulation

5.

Whether the alternative transportation vehicle industry will continue to grow

6.

Our ability to obtain approval, if required, from government authorities for our vehicles

7.

Our ability to fund short term and long term capital financing

Note that forward looking statements made by management in this Quarterly Report speaks only as of the date on which the report references.

EACH FORWARD-LOOKING STATEMENT SHOULD BE READ IN CONTEXT WITH, AND WITH AN UNDERSTANDING OF, THE VARIOUS OTHER DISCLOSURES CONCERNING OUR COMPANY AND OUR BUSINESS MODEL MADE IN OUR FILINGS. YOU SHOULD NOT PLACE UNDUE RELIANCE ON ANY FORWARD-LOOKING STATEMENT AS A PREDICTION OF ACTUAL RESULTS OR DEVELOPMENTS.

In this Quarterly report on Form 10-QSB the terms "RELO," "Company," "we," "us" and "our" refer to RELO and its subsidiary.

OVERVIEW

This current phase of our Business Plan is to bring to market our Alternative Transportation Vehicle (the "Duncan") which is an inexpensive low emission and fuel efficient vehicle. We have identified the manufacture that we expect to use for mass production and they have updated their manufacturing costs in order to add several new options to the base vehicle. We believe our vehicle will be utilized as a second or third family vehicle in many households in the US, and will be the primary vehicle in many third world countries. The ruggedness and stability of the Duncan will provide access in areas never before accessible.

The Duncan includes the market-leading safety features of a roll cage and a NASCAR style safety harness. The Duncan offers superior vehicle dynamics due to wider wheelbase and a lower center of gravity. The Duncan is subject to environmental and safety compliance with various Federal and State governmental regulations, including regulations promulgated by the Environmental Protection Agency, National Highway Traffic Safety Administration and Air Resource Board of the State of California (CARB). The costs of compliance activities can be substantial for vehicles to be used on the national highways. We have opted to initially distribute the Duncan for off road usage only.

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The Duncan is the top of its class in quality, power, ground clearance, suspension travel, and should rival the ride of any ATVs rider's enjoyment by providing high performance in acceleration, cornering, and off road capabilities. It was engineered to be the most stable vehicle of its class on the road. It's front to rear weight distribution offers predictable handling. The design configuration allows for a utility bed, making it the best of all worlds in the small off road vehicle market. We believe the Company is one of the first to pioneer a growing niche for alternative transportation vehicles, and our goal is to become known as a source for new technology vehicles for transportation.

SUBSIDIARY

In June, 2006, we formed a subsidiary, Duncan Motor Company, a Florida Corporation, which is managed by Richard Duncan, the creator of the Duncan prototype. Joining the Duncan management team is Dr. Robert Wright, an engineer and expert witness for automobile impact who designed the safety features for the prototype. We have been fortunate to attract Elena Golovanova, a highly qualified international business woman, who has assumed the position of Director of Marketing and Sales for Duncan Motor Company. Ms.Golovanova has already made significant progress in developing relationships and interested parties for International vehicle sales.

RECENT DEVELOPMENTS

Management has conducted a series of Marketing meetings organized to discuss how our relatively new company can be influential in changing the driving habits of the average American family in order to be able to succeed in manufacturing a fleet of more environmentally friendly, "greener" cars. We concluded that we have several unique selling positions: our design, our safety features, our fuel efficiency, and the excitement of our vehicle's driving experience.

Item 3.

Controls and Procedures.

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's Exchange Act reports is recorded, processed, summarized and reported within the time frames specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and its principal financial officer, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures in Rule 13a-15(f). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control, objectives and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of the end of the period covered by this report, based on an evaluation of the Company's controls and procedures, the Company's Chief Executive Officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective.

There have been no significant changes in the Company's internal controls, or in other factors that could significantly affect the internal controls, during the last fiscal quarter.

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