Send Email To Dop To Show Support For Elio Motors Loan.

[Kuda]

Just a question, seems like an interesting path to explore... why would EM refuse any more private investment money while the ATVM loan process is underway? Why would more investment money be a bad thing at this time? I get that you've said that EM has a plan if the loan doesn't happen. In my feeble mind, seems like that plan would be easier to implement if more private investment money came in while waiting for the loan.

Too many 'Chefs' spoil the soup............

 

[Rickb]

EM can do everything right, -demonstrate a great product, show the benefits of a realistic 84mpg, fill out all the forms perfectly, submit it before due dates, show the positive impact it will make for job creation, enhance overall productivity, etc. etc., but just a few well placed bucks (oops p.c) lobbyists,
for the auto industry, home and/or abroad, and a few Senators from Michigan and the loan slides off the table. Currently, our government cannot agree to much- let alone release loan money for a private startup and the risk it presents. The thought of that solar company that got a loan (from whatever pot) and went under is a risk no politician wants to take at this tme

The loan funds are there to use. The application process is long and slow to be certain the company making application has a product and a financial statement that qualifies them for the loan. Looking at the entire DOE portfolio not just the successes and failures proves that it's a very well managed and successful loan guarantee program.

Many companies will launch and become successful some will not, case in point Solyndra and Fisker........I hope they provide Elio Motors the opportunity to use loan money for success or failure. What's more important is that the loan approval will get the Elio to market on schedule avoiding another possible delay. My long range prediction is success......with or without the loan.

 

[Rickb]

Just a question, seems like an interesting path to explore... why would EM refuse any more private investment money while the ATVM loan process is underway? Why would more investment money be a bad thing at this time? I get that you've said that EM has a plan if the loan doesn't happen. In my feeble mind, seems like that plan would be easier to implement if more private investment money came in while waiting for the loan.

If there is low interest money available for the current investor pool to use for development why bring in additional investor funds at some higher cost in terms of interest rates or a % share of Elio Motors the company until absolutely necessary? Private investment money comes with some cost.

 

[CompTrex]

If there is low interest money available for the current investor pool to use for development why bring in additional investor funds at some higher cost in terms of interest rates or a % share of Elio Motors the company until absolutely necessary? Private investment money comes with some cost.

Sure, but couldn't EM take the investment money, even at a higher rate, then when the ATVM loan comes through with the lower rate, pay back the investor their portion? I just don't get a good feel for whether the lack of a loan is holding things up right now. Maybe they don't need the money right now so. like you said, instead of paying interest on money you don't need, let's see what happens with the gov't.

 

[AriLea]

why would EM refuse any more private investment money while the ATVM loan process is underway? Why would more investment money be a bad thing at this time?

To me it jumps out, 'planning'. When you put big money into stuff, you commit under contractual arrangements. Those conditions are probably highly dependent the nature of other investments and loans. They will want to hold off as long as anything is still up in the air.
This doesn't say they won't commit to things that can't wait.

 

[goofyone]

As others have said the least cost option is the ATVM loan as everything else has higher direct or indirect costs.

From what we know EM does not actually need money until about next summer as they have what they need to get the engine and vehicle ready for production and to get preliminary work done on the plant. As EM has some time to burn before the money is necessary they have chosen to wait and see what happens with the loan before proceeding with other options. If the loan is denied or if the process drags on too long they may have to consider other funding options to either replace the loan or bridge the gap to the loan.

 

[goofyone]

Was in Shreveport two weeks ago on business. Stopped by the plant & went
into the Visitors Center. Skeleton crew manning the entrance. Asked a
fella if I said the name 'Elio' did he know what I was talkin about. He said
"Oh Yeah." I said: "I'm probably not the first person to ask you that.". He
said: "No, you're not." He said Paul was recently there (which I knew) &
did I know Gino. I said I knew who Gino was & that if anyone could get
The Elio to production, he could. He said Gino was there doin computer
work. They aren't letting the public go into the plant yet. I told him I would
see him again, next fall..............
View attachment 3331
From the Visitors center I drove over to the gate by
the Assembly Bldg. & took this pic.

It is great to hear more news about some work going on at the plant. I think many people have overlooked the fact that EM is now actually actively working on getting preliminary work completed at the plant. This work being done now will make getting the vehicle into production go much quicker than most people may realize.

 

[Jeff Porter]

Too many 'Chefs' spoil the soup............
View attachment 3336

Thanks for the information everyone, appreciate it.

Makes sense to give the less-cost ATVM loan a chance to come through. But I do smell a delay coming. Too many things up in the air. Looking at the combination of ways things could turn out, seems more likely that Sept 2015 could become Feb 2016. The ol' mantra comes in, expect the worst, hope for the best.

 

[goofyone]

The ol' mantra comes in, expect the worst, hope for the best.

I see nothing wrong with this attitude. There are definitely a lot of moving parts which all must line up to enable this project to move forward and delays are an entirely realistic possibility.

 

[RUCRAYZE]

I see nothing wrong with this attitude. There are definitely a lot of moving parts which all must line up to enable this project to move forward and delays are an entirely realistic possibility.

with goofy having the inside track on what's happening, I'm now resigned for another delay (do we have a choice)?
If this does happen the project will shine less brightly, for investors, buyers, and reduced possibility of loans. Add in the negative press, which will reinforce the nay-sayers. EM has some really tough decisions ahead......