The key word is "additional." That means in addition to the loan request, not including it.
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As to 'media test drives' I heard a week ago when the Elio was in Cedar Rapids that the P4 had an automatic transmission mostly for the media since many can't drive a manual transmission. Based upon that, I doubt the P5 will be aimed at the media. At least not the general, 'hostess of the morning news show' media. Maybe the enthusiast media. but probably not the general media.
HHH
Elio Addict
“Financially Viable”:
The applicant will be deemed “financially viable” for purposes of 10 CFR
611.100(a)(2) if (i) there is a reasonable prospect that the applicant will be able to pay principal and
interest as and when due under the ATVM Program loan and (ii) the applicant has a net present value that is positive, taking all costs, existing and future, into account. (See definition of “financially viable”
in 10 CFR 611.2.)
As Bart Simpson questioned in such simple fashion, "Are we there yet?"
The bonus program is now taking an average of 65% from the $1000 profit on the base vehicle for earlier reservation holders. The profit margin on options has been stated by PE to be targeted at a fixed 20%. Each impacts future cash flows.
Going on this ride remains an adventure.
The applicant will be deemed “financially viable” for purposes of 10 CFR
611.100(a)(2) if (i) there is a reasonable prospect that the applicant will be able to pay principal and
interest as and when due under the ATVM Program loan and (ii) the applicant has a net present value that is positive, taking all costs, existing and future, into account. (See definition of “financially viable”
in 10 CFR 611.2.)
As Bart Simpson questioned in such simple fashion, "Are we there yet?"
The bonus program is now taking an average of 65% from the $1000 profit on the base vehicle for earlier reservation holders. The profit margin on options has been stated by PE to be targeted at a fixed 20%. Each impacts future cash flows.
Going on this ride remains an adventure.
CompTrex
Elio Addict
And speaking of test drives: with their still-standing-by the-date of mid 2016 rapidly approaching, I wonder if the purchasers will ever get a chance to test drive one of these before we buy it. I sure would like to be able to drive one before I need to decide on a transmission and other options, but being only a year out I see this opportunity dwindling.
WilliamH
Elio Addict
with EM's
I asked Jerome about preorder test drives last December in Charlotte .... he told me that they hope to be able to make arrangements for them but that may or may not possible for early reservations .... in short, it appears that nothing much has changed in that area .... that uncertainty played a significant part in our decision on what type of reservation to make .... since we aren't in any rush to get one, we decided that we would rather have tens of thousands built prior to ours
I asked Jerome about preorder test drives last December in Charlotte .... he told me that they hope to be able to make arrangements for them but that may or may not possible for early reservations .... in short, it appears that nothing much has changed in that area .... that uncertainty played a significant part in our decision on what type of reservation to make .... since we aren't in any rush to get one, we decided that we would rather have tens of thousands built prior to ours
outsydthebox
Elio Addict
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Please correct me if I am wrong but, I was under the impression that EM's "target profit" was to be $2K per unit.
2nd: Every one of the listed "vendors" (parts & materials suppliers) are well established companies. These companies are currently supplying other car makers at a profit. They are not sitting on their hands waiting for the Elio to start up, with "zero" cash on hand. I believe it is industry standard for these suppliers, to be paid 30 days after the product is supplied. This give EM a time "cushion". Yes, that leaves the vendors carrying the load, but they are established companies. I have been working as a "vendor" to the auto industry (dealerships) for 20 years now. It is normal for for me to bill every 30 days and get paid within 2 weeks. So, It may be up to 6 weeks before I get paid. This should be "factored in" with our "WAGS".
Oh boy, a sizeable level of thinking, estimating and guess work has gone on in the last 24 hours. Yep, I'm in that boat too.
We tend to forget EM has sized all of this up. The cash flow and capital outlay IS the principle business plan issue in automotive startups.
EM does not like to detail such things to the public. There is always a combination of cash up front and back door deals and loans involved. EM has admitted to requiring upfront 240m total of which almost 100m will have been collected when the A+ program concludes and is done-done.
EM has not, and will not let us know how much goes directly towards production start up or the other cost areas. Those all are a huge black-box to us. But again, certainly EM has calculated all this out and made, and going to make their back-door contracts and loans to work it all out. The banks are more than willing to make money connecting a 60day-90day delay in delivery vs payment receipts etc. Who do you think will benefit from those credit card programs? Not just EM. Certainly a bank has already been engaged as a package deal.
So of course it doesn't add up for many of us. That's because we, in the open public, don't have all the numbers and deals available to calculate it all.
We tend to forget EM has sized all of this up. The cash flow and capital outlay IS the principle business plan issue in automotive startups.
EM does not like to detail such things to the public. There is always a combination of cash up front and back door deals and loans involved. EM has admitted to requiring upfront 240m total of which almost 100m will have been collected when the A+ program concludes and is done-done.
EM has not, and will not let us know how much goes directly towards production start up or the other cost areas. Those all are a huge black-box to us. But again, certainly EM has calculated all this out and made, and going to make their back-door contracts and loans to work it all out. The banks are more than willing to make money connecting a 60day-90day delay in delivery vs payment receipts etc. Who do you think will benefit from those credit card programs? Not just EM. Certainly a bank has already been engaged as a package deal.
So of course it doesn't add up for many of us. That's because we, in the open public, don't have all the numbers and deals available to calculate it all.
On the bright side the happily divorced wife may be the evaluator.