I Have Given Up On Elio, Have You?

[Ty]

If they went bankrupt, the deal on the plant would end, the equipment would go up for sale and the refundables would get their money back. Whatever the money made on the equipment and remaining assets would go to the lease and loan holders. Then whoever owns the intellectual rights to Elio would have to decide what to do. The chance of anyone coming in and taking over Elio as it is, will never happen without major renegotiation of the existing contracts. The job works program would have to be eliminated, the back lease would have to be eliminated and the equipment loan and assessment would have to be renegotiated. The downfall is, that plant equipment has been idle for 7 years and it doesn't increase in value and the Elio design is becoming dated.

With the remaining 58K reservations, they would need to send out a survey to see a few things.
1. How many people are still interested in the Elio? I know not all 58K will want one today. That's an unrealistic expectation because some have died, moved on or family/financial situations changed.
2. Of the remaining ones interested, would they still be interested if the contract was renegotiated? Many will bail because if it's not what they have expected, they will walk away. So you need to know that number.

Of those still interested, then you need a new survey
1. What price are you willing to pay out of pocket today for an Elio?
2. What mileage are you willing to accept?
3. What level of safety are you willing to accept?
4. If it's built outside the US is that OK?
4. Would you buy an Elio if it was only offered as an EV?

At that point then it'll become clear as to what to do. Until then you'll never know what the majority are willing to accept and if it's feasible to continue the Elio project as is or change it.

Well said. Though, I believe the equipment in the factory was bought by Elio who now owns the equipment outright. Finding a buyer for the equipment would be tough. Elio couldn't sell off the few pieces they didn't need and I don't suspect there is a big market for it either. Effectively, it's valuable in-place only and scrap elsewhere. However, the GM plant IS about the right size to assemble Tesla's new Model Y... at a rate of one vehicle per 54 seconds.

 

[ABC123]

I signed my binding commitment about this time in 2017. It clearly says that my base price is locked. I can’t get my $1k back, so if this goes to production, I’m not renegotiating the binding commitment.

If the price goes up or the production vehicle is electric, I’m no longer interested.

In retrospect, I should have opted for the refundable option, bonuses be damned. Kudos to those who have been here longer than me.

I’m talking with my accountant on how to deduct the deposit as earnest money.

 

[dbacksfan81]

Well said. Though, I believe the equipment in the factory was bought by Elio who now owns the equipment outright. Finding a buyer for the equipment would be tough. Elio couldn't sell off the few pieces they didn't need and I don't suspect there is a big market for it either. Effectively, it's valuable in-place only and scrap elsewhere. However, the GM plant IS about the right size to assemble Tesla's new Model Y... at a rate of one vehicle per 54 seconds.

From September 17, 2014

"The startup motor company Elio Motors is a little closer to producing its three-wheeled vehicle at the former GM plant in Shreveport. Elio Motors announced Wednesday that it will raise funds by selling off or recycling equipment GM had used to build trucks. It'll keep what's needed for producing its own vehicle. Some see this as a good sign of things to come.

"I think we're going to see activity in there real soon," Escude said. "All that means is that they are getting closer and closer to setting up the assembly line and we're getting closer and closer to hiring."

Escude says the market value of the equipment is $400 million. He says Elio purchased it through RACER, a trust set up to sell off GMs old properties at a great discount. Escude says when the parish purchased the GM plant the equipment had already been sold.

"Almost a year prior to that, the deal for the equipment had already been done," Escude said. "So, Elio has always owned the equipment. The parish never had the option to buy the equipment."

Elio will not occupy the entire GM plant. The remaining space will be leased out to other manufacturers, and Escude says the place has been active possible occupants. He expects some of Elio's suppliers may take up shop there.

"I would be surprised if some of them didn't," Escude said. "It's a lot easier than shipping it when you have it right here."

https://www.ktbs.com/news/elio-moto...cle_cfde8d67-98ce-5344-8f10-f4f05330b550.html

 

[raptor213]

Given this discussion topic, I'm curious what options may or may not be presented to those of us who naively opted to lock in our firm non-refundable reservations, agreeing to purchase an Elio if/when that opportunity presented itself. I wonder what provisions might allow for reservationists to still walk away.

 

[Mel]

2. Of the remaining ones interested, would they still be interested if the contract was renegotiated? Many will bail because if it's not what they have expected, they will walk away. So you need to know that number.

Of those still interested, then you need a new survey
1. What price are you willing to pay out of pocket today for an Elio? $5500. $7000 minus $1500 in deposit and bonus. This was contracted!
2. What mileage are you willing to accept? Not real concerned about mileage. MPG was a target, never promised.
3. What level of safety are you willing to accept? Anything reasonable. Again, this was targeted, never promised.
4. If it's built outside the US is that OK? "Made in USA" is not a requirement for me. It was never promised.
4. Would you buy an Elio if it was only offered as an EV? NO! I could not use a range of less than 400 miles. My job yesterday used over 360 miles.

 

[Neal]

I haven't given up. I have no regrets. Yes, my confidence is not a high as it used to be, but I'm still all in.

But mostly, I don't feel duped. I have seen nothing that indicates that there have been nothing but the best efforts to bring the Elio to fruition. All start up companies are risky, especially in the automotive world.

 

[Ray O]

I am still hopeful. It would be great if we could just get a report on how Roush Motors did with the new engine at what engine it is. I still thing using just one transmission and eliminating the air bags would save money and production time.

 

[RSchneider]

They still owe on the equipment. They have sold off what they do not need (which if you looked at their ebay site was a bunch of outdated equipment that would work for a small startup operation). They sold around $5.8M in equipment and have about $875K left for sale. As of the rest, it sits and they valued it at $11.9M. It's been depreciated and they are at the point they can't keep doing it.

As for the contract, I am only going using that reference if the company went bankrupt. Thus if it became Smith Motors they would never have to honor a contract from a defunct company (Elio Motors). As for modifying it, that would what Smith Motors could do and then survey what the old reservation holders would be willing to put up with when it comes to changes. If it comes down to that Smith Motors cannot sell someone a $5500 Smith because the retail price could be $10K, then they would just not contact anyone and build what they can for a price that they think will work for them.

 

[Made in USA]

Probably my biggest issue is that Paul Elio is basically missing. It would be nice to hear things like: Paul is going to New York to talk with investors. We don't need to kow who, or what the outcome is. Just tell us what he is up to. Is he talking with suppliers or engineering companies? What I fear is that he is just sitting at home eating bon-bons waiting for the phone to ring.

 

[Elf]

Knowing a little about manufacturing and banking I only invested $100 at the beginning .I will be very shocked if vehicles are ever produced .