100 Preproduction Elio's To Be Built In December!!

[Cache Man]

This is telling me that the factory will be up and running sometime in the 4th quarter. BIG NEWS!
Enough workers to make 100 finished vehicles - that's probably one complete assembly line.
They should be poised to go pretty soon after that. Yep, BIG NEWS!
MK

The 100 vehicles could be assembled by the newly hires company (I believe in Detroit) which will assemble the 25 test vehicles. At this point we cannot say and it seems that things are now "fluid" again. I would think they would want to build them in LA to meet the lease requirements or pacify the city government folks.

 

[Mel]

The 100 vehicles could be assembled by the newly hires company (I believe in Detroit) which will assemble the 25 test vehicles. At this point we cannot say and it seems that things are now "fluid" again. I would think they would want to build them in LA to meet the lease requirements or pacify the city government folks.

I believe the announcement said that they will be built in the Shreveport plant.

 

[Cache Man]

Let's use your example to do a very simplified cost analysis (accounting only for production costs):

Before [100 pre-production solely for testing]:
Total Net Cost = production cost - income from unit sales
= $60,000 X 100 - $0 X 100 = $6,000,000

After [100 pre-production sold to fleets and used for testing]:
Total Net Cost = $60,000 X 100 - $7,000 X 100 = $6,000,000 - $700,000 = $5,300,000.

In other words, Elio was planning to make those 100 for testing anyway and not for sale, which using your scenario would've cost them $6M. Now, they're looking at $6M offset by the sale of these 100 vehicles, so EM's net costs for this phase using your illustrative numbers would be $5.3M.

How is that not a good thing in your mind?

If a fleet company was looking for a "cost saving car fleet" why would they want to spend millions on a fleet in order to save money and have the first Elios? If they are common people like most of us, then I don't think I want an Elio that costs $60,000. I don't think J. Leno would buy a fleet of Elios. I believe the cost or price will be subsidized to the $6,800 range and with an agreement to allow Elio to examine the cars or possibly purchase them back for analysis.

 

[Cache Man]

I believe the announcement said that they will be built in the Shreveport plant.

Yes they did. But to add a little humor... They said they would start production several time now and use the 125 vehicles internally. I'm sure others can post other things Elio has said that later was unsaid. They did state the 100 vehicles are "Pre-production". Does this qualify for the "production in 2016" per the Parrish agreement? The 25 E-series are being built in Detroit to determine how the production will be performed and to develop tooling, per another Elio news release.

 

[Marshall]

By $680,000, are you suggesting that EM will get the parts for free?

I'm suggesting that they weren't free without revenue and aren't free with revenue. They offset, so the new revenue is strictly from changing an expense with no matching revenue with to an expense with matching revenue. Neither produces PROFIT in a traditional sense which is why I think they are called PRE-production vehicles.

 

[Elio Amazed]

I'm suggesting that they weren't free without revenue and aren't free with revenue. They offset, so the new revenue is strictly from changing an expense with no matching revenue with to an expense with matching revenue. Neither produces PROFIT in a traditional sense which is why I think they are called PRE-production vehicles.

Cool.
The only problem I have is with "matching" revenue.
I think these 100 will cost quite a bit more than $6800 each to build.

 

[Marshall]

Cool.
The only problem I have is with "matching" revenue.
I think these 100 will cost quite a bit more than $6800 each to build.

Most certainly so. But the cost is unchanged other than the new revenue which also certainly less than cost for a limited run of 100 vehicles. Probably substantially less.

 

[JEBar]

REMINDER ....

discussions are what this forum is all about .... heated discussions that degenerate into arguments aren't what this forum is all about .... we have a few posters in this thread that need to reflect on some of the ways they have chosen to present their points .... a line is being drawn here .... those who have been here for a while know exactly what I'm talking about and need to take a deep breath .... those who haven't been here long need to pay heed

 

[Marshall]

REMINDER ....

discussions are what this forum is all about .... heated discussions that degenerate into arguments aren't what this forum is all about .... we have a few posters in this thread that need to reflect on some of the ways they have chosen to present their points .... a line is being drawn here .... those who have been here for a while know exactly what I'm talking about and need to take a deep breath .... those who haven't been here long need to pay heed

You do realize I'm agreeing with him, don't you? The disagreement is on how to account for the new revenue and clarifying it is not from Traditional Profit but from reducing cost.

But reminders are always welcome at my age.

 

[JEBar]

You do realize I'm agreeing with him, don't you? The disagreement is on how to account for the new revenue and clarifying it is not from Traditional Profit but from reducing cost.

But reminders are always welcome at my age.

this morning some post in this thread were reported .... after going back reviewing all 16 pages I wrote the post above .... when I clicked on Post Reply, the forum software just happened to place it following the one you made ....