Financing Elio Motors Development And Production

[BlioKart]

G1 the Equalizer.

I remember reading it and not really thinking about it. Would be nice to try before I order but I am set on what I want anyways.

 

[goofyone]

(Your statement will not go un-noticed by G1 and the other true believers),

This too is not reassuring ,( but will be rationalized away so the idol is not disparaged). There is just so much that can be thrown out there. The end the possibility is governed by a specific date. Sometime (?) if the 1500 workers are not cranking 'em out, there was a big, daily, very large, per-diem penalty, and unless EM secures another extension there is a very specific date that will be unable to PR it away.
All else here is BS, but that date is a reality that cannot be rationalized away.

The date is also BS as it can, and indeed already has been, changed at least once and it can easily be changed again. The only thing that is not BS, and ultimately matters to EM getting into production, is the reason for this thread; FUNDING.

 

[JEBar]

I have been trying for nearly a year now to set the record straight on this issue as I believe there are many reservation holders who have this belief however as far as I can find EM has never actually promised ride and drive events ahead of production. Instead what EM has consistently said is that they are planning a series of ride and drive events for their reservation holders 'around the start of production'.

Here is a quote directly from EM's FAQ system and I have seen this repeated many times with slightly different wording but always essentially the same:


Note the fact that this does not specify whether this happens just before or after that first delivery happens. It also does not specify how close which is very important because we have been told that we will be expected to place our orders about two months ahead of delivery. Even if these events begin happening a month before production begins that is very likely still after several thousand early reservations holders have already had to submit their orders.

I hope EM can provide the Ride & Drive events far enough in advance to give everyone a chance to participate ahead of placing their orders however I am aware that as an early reservation holder I may not get this chance and indeed EM has never promised that this would be available to me.

I tried to find the quote from EM that you posted above and couldn't do so, I'm sure glad your ability to track down such things is far better than mine ....

 

[goofyone]

I tried to find the quote from EM that you posted above and couldn't do so, I'm sure glad your ability to track down such things is far better than mine ....

As I wrote I have been trying to correct this misconception for a while so I was able to find it quickly by simply searching my old posts.

 

[JEBar]

As I wrote I have been trying to correct this misconception for a while so I found it quickly by simply searching my old posts.

hey, it worked ..

 

[outsydthebox]

Computer simulations are perfectly acceptable according to the ATVM program guidelines and combining those with the current plant plans from Comau, the existence of the plant itself and reusable plant equipment, and the chassis mule prototypes already constructed and EM very likely has the bases covered. Having the actual pre-production vehicles would most definitely not hurt, even if not required, however likely even more helpful is the running engine. The DOE, and other 'green' oriented people in the administration, are likely to care a lot less about the production line details than they do care about actually meeting, or exceeding, the fuel efficiency target.

And even with the old, Geo motor they have already exceeded 80mpg. The new engine will just be icing on the cake.

 

[outsydthebox]

So the DOE considers the hallmarks of a "strong application" as including;

•Detailed project narrative and plan with key activities and milestones
•Integrated, dynamic financial model, including cash flow, and a strong NPV for the project
•Three years of consolidated financial statements (audited, if available)
•Significant equity funding at the time of application
•Significant, unencumbered collateral, broken down by asset type
•For suppliers, sale agreement for existing (and/or planned) production strengthens the
creditworthiness of the application
•Control over the proposed project site
•Experienced leadership and senior staff with experience directly related to the proposed project
•Strong operating history of the company, parent, and/or subsidiary

What are peoples thoughts of Elio's current stance weighed against these points?

I give them high marks on all counts...but, my opinion isn't the one that matters. The ball's in the DOE's court.

 

[Ty]

And even with the old, Geo motor they have already exceeded 80mpg. The new engine will just be icing on the cake.

I don't think so. The new motor is close though.

 

[John Painter]

I have heard that IAV employees will be there to build the motors while training workers at the plant .... no clue how long the training and transition will take/QUOTE]
Right, IAV.

 

[goofyone]

So the DOE considers the hallmarks of a "strong application" as including;

•Detailed project narrative and plan with key activities and milestones
•Integrated, dynamic financial model, including cash flow, and a strong NPV for the project
•Three years of consolidated financial statements (audited, if available)
•Significant equity funding at the time of application
•Significant, unencumbered collateral, broken down by asset type
•For suppliers, sale agreement for existing (and/or planned) production strengthens the
creditworthiness of the application
•Control over the proposed project site
•Experienced leadership and senior staff with experience directly related to the proposed project
•Strong operating history of the company, parent, and/or subsidiary

What are peoples thoughts of Elio's current stance weighed against these points?

The truth is that many of us could likely write a well reasoned paragraph supporting EM and another paragraph rejecting EM on each one of those points so ultimately I do not believe any of those points really matter. Instead I believe that if the politicians and/or political appointees who run the show in DC like the Elio Motors concept and believe Elio Motors is capable of producing the vehicle they will write the loan acceptance in such a way so it appears that EM has those items covered. If they do not like the concept and/or do not believe that EM is capable of delivering on their promises then they will write a rejection in which EM fails to meet one or more of those items.