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

[grampi]

No banks would give EM $185M.

How do you know?

 

[Kuda]

How do you know?

Current: http://www.mnn.com/green-tech/trans...uirky-80-mpg-6800-elio-should-debut-next-year

 

[JEBar]

Current: http://www.mnn.com/green-tech/trans...uirky-80-mpg-6800-elio-should-debut-next-year

nice article but no new info .... hopefully the article will motivate new folks to take a look at EM

Jim

 

[tonyspumoni]

How do you know?

As near as I can tell the ATVM loan would be an unsecured loan, e.g. DOE would obtain neither an equity stake (called a debt-equity swap) nor collateral. In this sense Grampi is absoultey correct - no bank would give EM a loan on similar terms, which is what makes the ATVM loan so crazy attractive. 4% on 20 years for nothing? That's effectively printing money.

 

[Smitty901]

How do you know?

Because banks don't loan money on good ideas or products. You need to bring more to the table and Elio just does not have it YET.

 

[Jay3wheel]

There are lots of other sources for money than banks.

Insurance companies for example.

 

[JEBar]

the vast majority of lending institutions make loans based on the person/company having sufficient assets/collateral to ensure that they won't lose money if the person/company can't repay the loan .... government agencies don't necessarily operate under that restriction .... investors are about the only non-government group that kicks in money to back a concept

Jim

 

[Kuda]

Snipped: .... investors are about the only non-government group that kicks in money to back a concept

Jim

& Elioites!

 

[Ty]

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.

Paul is taking a quiz:

1. Choose one of the following.
A. Get an ATVM loan and maintain control of your company. Pay it back when you can.
B. Take investor's money. Pay them a portion of profit... forever.
C. Give up. Take your ball and play somewhere else.

I'd choose A and only if I had too, B.

 

[Ty]

I don't think funding is the problem.............getting the new engine built and tested is no doubt the time consumer.

Elio isn't doing anything with the engine. I think many people think Elio is spending their time building and designing an engine. They aren't.

From Elio's supplier info page:
IAV is the engine designer for Elio Motors. They will design and develop the entire powertrain for the vehicle (engine, transmission, powertrain control system? Including performance, emissions, validation and endurance testing.