Financing Elio Motors Development And Production

[Kuda]

Snipped: Then it 's time for the rubber to hit the raod we'll just have to carefully watch the press releases this year to be able to fully determine what will and won't happen.

There is a very careful & sophisticated dance at play here. Public faith in Elio is fragile at best & further delays will surely harm Elio's credibility. That said I believe they are beyond "The Dog & Pony" show stage & the due diligence requirements. Now comes the "End Game" where bets are hedged to the extant they can be & bank contracts are signed. These typically go in Tranches that are keyed on certain spelled out milestones. That is to say if you don't perform to projections you don't get the next round of funding....................

 

[whattheelf]

Since you didn't provide a link, I assume you took that from Matt Keegan's Auto Trends article: http://www.autotrends.org/2014/04/28/elio-motors-nola-fact-fantasy/

Did you happen to notice the last two sentences of the article?

"...the Shreveport plant is one of the most modern of its kind (updated and expanded in 2002) and comes with more than $500 million in equipment. That’s a benefit many hope will give Elio solid footing in its quest to become the next success story in American business."

Personally, I question that $500 million figure. But the equipment HAS been purchased.

Yes, just referencing the name/source, from an industry analyst, not the link, which I believe has been mentioned in other articles.

The central issue is it is unclear whether the plant, or now what partial space within that plant, could handle the projected numbers and financials projected by EM? There is considerable confusion here, as much as some may indicate the news from just two weeks ago is "old news", I have not seen one other release challenging or refuting the comments from the parrish commisioners, whom are far closer to this initiative than anyone here, whom are very noted skeptics on EM.

I am also unclear what role and/or equipment, and in what space is COMAU going to occupy and install their equipment, or retrofit what equipment. I can tell you first hand, while on several operations assignments moving complete volume assembly operations, seldom does the "existing" equipment remotely capable without considerable retooling and modification. The same goes with the Elio, what used to stamp, form, extrude, and cast etc etc GM car parts, requires tens of millions of dollars in changes, and happens after many months, not weeks.

So, yes I read the entire article, a few times. But, I actually believe the $500M in equipment is there, if not actually considerably more, but the issue is about what it costs and time it takes to retrofit, which is not trivial. Its a great marketing plug designed to impress and attract interest, but there is much more to consider beyond the existing equipment to be ready for actual volume production.

 

[whattheelf]

There is a very careful & sophisticated dance at play here. Public faith in Elio is fragile at best & further delays will surely harm Elio's credibility. That said I believe they are beyond "The Dog & Pony" show stage & the due diligence requirements. Now comes the "End Game" where bets are hedged to the extant they can be & bank contracts are signed. These typically go in Tranches that are keyed on certain spelled out milestones. That is to say if yopu don't perform to projections you don't get the next round of funding....................

Indeed. Its alot easier to secure next round funding from investors/PE/institutions, say when large contracts/design wins have been secured, typical of other industries, the challenge here is what beyond reservation deposits, which are rather limited, will enable said critical round of funding. For the fabulously wealthy, 150M is actually not that much of a stretch to acquire, for a product foreseen as being eventually rather pervasive, thus the red flag here already.

 

[Kuda]

So, yes I read the entire article, a few times. But, I actually believe the $500M in equipment is there, if not actually considerably more, but the issue is about what it costs and time it takes to retrofit, which is not trivial. Its a great marketing plug designed to impress and attract interest, but there is much more to consider beyond the existing equipment to be ready for actual volume production.

It is with just these things & numerous others in mind that Gino Raffin was asked to get involved at the early design stage. He's bin involved with
a number of vehicle start ups & If this was a fly-by-night affair he wouldn't waste his time.........

http://us6.campaign-archive2.com/?u=24b371802c83d81776b06aa68&id=72e91759db&e=[UNIQID]

 

[Johnny Acree]

First let me say I'm all in, got the Tee shirt bought the hat.
And sence this thread seams to be about "will Elio make it". I was wondering how close Aptera was to "making it".
I found this http://www.greencarreports.com/news/1070154_aptera-shutting-down-for-good
As I remember Aptera was very close, and that is what scares me. It can go bad very quickly. One week they were going to build it the next they were closing the doors.
I really hope EM can do it!, but if you don't study history you are doomed to repeat it.

 

[Kuda]

Indeed. Its alot easier to secure next round funding from investors/PE/institutions, say when large contracts/design wins have been secured, typical of other industries, the challenge here is what beyond reservation deposits, which are rather limited, will enable said critical round of funding. For the fabulously wealthy, 150M is actually not that much of a stretch to acquire, for a product foreseen as being eventually rather pervasive, thus the red flag here already.

None of this is for the faint of heart. There are no guarantees other than nothing ventured..............smart people are doing their best to try & change the paradigm & God bless them for that. Will they put GM out of business, not likely, will they wake up a lot of people & do considerable good for the good
'ol USA, not to mention, Louisiana, I think so. So Here's to you Elio Team...........DLTBGYD!

 

[Kuda]

First let me say I'm all in, got the Tee shirt bought the hat.
And sence this thread seams to be about "will Elio make it". I was wondering how close Aptera was to "making it".
I found this http://www.greencarreports.com/news/1070154_aptera-shutting-down-for-good
As I remember Aptera was very close, and that is what scares me. It can go bad very quickly. One week they were going to build it the next they were closing the doors.
I really hope EM can do it!, but if you don't study history you are doomed to repeat it.

I watched Aptera as well. I don't know the details that led to their collapse but I bet you a steak dinner Paul Elio does...............

 

[Craig]

My successful 28 year career, post college and grad, includes significant accomplishments and several solo and shared design patents, spanning senior roles in mechanical & industrial engineering, project management, industrial design, business process reengineering, product marketing, and strategic business development, with the latter half of my career including officer/director positions, which as you may understand already required considerable corporate finance and tax assessment, specifically as it relates to strategic M&A activity. I've been mentored and recruited into these positions across several industries from aerospace/defense, semiconductors, telecom, and consumer electronics. A fortunate trajectory that has enabled me to very comfortably retire prior to 50. Now looking at various opportunities to invest and/or help fund green energy initiatives and various endangered wildlife conservancies.

Many members have sent EM e-mails voicing their concerns, wants and wishes.
I think if you send EM an e-mail today, voicing your concerns and telling them of your extensive background, they will answer and then you can post it.

Several creditable Engineers on here have done that and ended up getting a little one on one. You can then show us how they feel about your concerns and the changes they are contemplating for the car or business plan, if any, because of those concerns and most on here will probably get off your back. JMO

P.S. Please include all of your post #63 in your e-mail to Paul. Thanks.
http://www.elioowners.com/threads/funding-alternatives.1460/page-7

 

[Dustoff]

August 2013
District 7 Commissioner Stephanie Lynch held a news conference Monday to express her concerns about the proposal, which she describes as the largest direct cash investment in the history of Caddo Parish.
"In a nutshell, we are considering buying the old GM facility to provide backdoor cash to Elio Motors, a startup manufacturer who has barely secured enough private investor interest to move beyond the concept phase of developing a three-wheeled vehicle."
Supporters of the plan say it will help the startup car maker bring 1,500 jobs to the parish.
According to Lynch, Elio's inability to raise capital at this point may make the deal too risky and speculative. "If Elio is having trouble raising $7.5 million to purchase the plant, Lynch says, where is the $200 million going to come from that is actually needed to bring those jobs to Caddo Parish," said Lynch.
While Lynch says she is not opposed to the parish purchasing the plant, she says is "concerned about the lack of private investment needed to actually bring those jobs to fruition."
In a statement released Monday, Lynch goes on to say that she has not seen the level of support from the business community and taxpayers who will be left holding the bag should the deal go south.
"This deal has not been properly vetted, and as currently proposed, shifts the majority of the risk and liability onto taxpayers," Lynch said. That's why she's calling for more input from the business community on the proposal. If the jobs don't materialize after 30 months, she wants a provision to be able to sell the property to developer so the parish can recoup its money. She also wants guarantees that the parish, Caddo Parish taxpayers, would get their investment back if the jobs don't come through.

Does any of this sound like any recent posts?
Sour grapes?

 

[Craig]

I remind again. With all your amazing business knowledge you still have the time to sit on an Elio forum ALL day typing endless BS for what? It's a long shot we get it! Why would someone with your self proclaimed wisdom spend so much of your Valuable time playing on a forum you see no value in? Don't play the "I want to save you from yourselves" BS. You made your point (I guess??) What is your end game? Do you fear progress or change? Are you related to 3card Debbie? Or are you an unemployed doomsday critic with nothing better to do? You have made your point, shared your self proclaimed accomplishments. Good for you. Feel free to move on and save the day elsewhere. Your input is received and filed. Stop feeding yet another clown to jump on the bus. Wish you well in all your genius endeavors.