Is Elio Sandbagging?

[BADBOY]

The way I understand the process is that the stage they are on right now is likely the longest stage as it is the due diligence stage. This really is the key stage in the process as this is where the government reviews everything EM has submitted and whatever else they choose to ask for and decides whether EM both qualifies for a loan and whether they are willing to enter negotiations with EM for the loan. The next step is would be where EM and the government actually negotiate the exact amount and terms of the loan and if that all works out as expected the loan papers are signed and EM gets the money.

There have not been any time targets publicly stated by either the DOE or EM. We don't know if this is because there is none of if it is because nobody can or wants to talk about this.

You can find much more ATVM discussion on this thread: http://www.elioowners.com/threads/atvm-loan.2596/


As for what happens if the loan takes a long time or is denied we just don't know for sure right now. EM has indeed told us they have the commitments necessary to bring this vehicle to market without the loan and at this point we have to take their word on this. Hopefully it won't be needed at all but if it is we hope those who have said they would provide the money actually do.

Many thanks and I have read that other thread. Appreciate explanation of due diligence but to me it does not seem to involve much time for negotiations. Gov't like any lender says "Here is how much and for this percentage". Elio says yes or no. I do understand gov't can take for ever to read and approve EMs info but as you said earlier would be reasonable that gov't would want to push another "green, economical means of transportation for the worker/common man." I am a glass half full guy on this autocycle.

 

[goofyone]

Many thanks and I have read that other thread. Appreciate explanation of due diligence but to me it does not seem to involve much time for negotiations. Gov't like any lender says "Here is how much and for this percentage". Elio says yes or no. I do understand gov't can take for ever to read and approve EMs info but as you said earlier would be reasonable that gov't would want to push another "green, economical means of transportation for the worker/common man." I am a glass half full guy on this autocycle.

I agree and am also optimistic about EM's chances with the ATVM loan as the politicians would like to see quick results in delivering ultra inexpensive and ultra fuel efficient transportation available to the average American and this is exactly what EM is promising to deliver if provided the ATVM loan.

 

[RUCRAYZE]

do you really believe "the politicians would like to see quick results in delivering......" They can't even resolve basic issues like spending money on road repair or paying our debts. For sure, LA politicos would love the plant and the jobs it'll bring, be sure to notice them all lined up/photo ops- when the first units come rolling off the line. Their priorities are to get re-elected and kiss every baby and any ass to achieve it!

 

[grampi]

Quick Overview:

Department of Energy Advanced Technology Vehicle Manufacturing Loan Program which Elio Motors was invited to apply for and did in August of this year. If approved this would provide EM with up to $185 million dollars at an ultra low interest rate which they would then use mostly for preparing the Shreveport plant for Elio production.

Earlier in the year Elio Motors was invited to a green technology event in Washington DC where the Under Secretary of the Department of Energy actually sat in the P4 and was introduced and spoke with Paul Elio for bit and lead to further discussions in which EM was encouraged to apply and eventually did after completing all the prerequisite steps.

They applied for this loan in Aug and they still don't know if they're gonna get it? How long does this process take?

 

[nthawk68]

They applied for this loan in Aug and they still don't know if they're gonna get it? How long does this process take?

The Govt hasnt passed a budget in over 5 years, so i would sat maybe 5 years....
If they give out all their money, some bureaucrat may get out of a job.

 

[goofyone]

They applied for this loan in Aug and they still don't know if they're gonna get it? How long does this process take?

It is known to take a while as this is the government we are talking about. As an example it took Tesla a year to receive their ATVM loan. The DOE claims they are trying to process the loan applications more quickly now so it we are lucky they will shave a month or three off that time.

 

[Oldfarmer]

They applied for this loan in Aug and they still don't know if they're gonna get it? How long does this process take?

I would normally say that's a great question but- it took me 8 (!) months to do a refi last year.

 

[goofyone]

do you really believe "the politicians would like to see quick results in delivering......" They can't even resolve basic issues like spending money on road repair or paying our debts. For sure, LA politicos would love the plant and the jobs it'll bring, be sure to notice them all lined up/photo ops- when the first units come rolling off the line. Their priorities are to get re-elected and kiss every baby and any ass to achieve it!

Considering this loan program is not exactly held in the best regards by many because of questionable decisions they have made giving money to companies that took the money and then took a while before they entered production or even failing before they entered production I would say that Elio Motors offers the politicians a very good scenario in which if they get the money this spring Elio Motors will very likely have vehicles rolling off the assembly line and into customers hands before the end of the year and they already have enough reservations to stay in business long enough to have a chance at actually succeeding over an extended period of time. Also unlike the high end vehicles like Tesla and Fisker these vehicles will be affordable to almost everyone which goes hand in hand with your ass kissing scenario.

I am under no illusions as to the self serving reasons why the politicians would want Elio Motors to be successful if given the loan but in this case what they would want and what I want happen to match up.

 

[JEBar]

it shouldn't come as a surprise to most folks that when a person or company has to deal with Washington, politics is supreme .... as has been noted, the current administration has had very few major victories while suffering numerous setbacks .... they have less than 2 years left to build a legacy and when a company comes by offering an American made product, priced within the reach of most Americans, American jobs, using mostly American made components, I suspect that the agency will be somewhat more motivated to expedite the process

Jim

 

[Rickb]

do you really believe "the politicians would like to see quick results in delivering......" They can't even resolve basic issues like spending money on road repair or paying our debts. For sure, LA politicos would love the plant and the jobs it'll bring, be sure to notice them all lined up/photo ops- when the first units come rolling off the line. Their priorities are to get re-elected and kiss every baby and any ass to achieve it!

It's highly likely EM will get their loan application sinc they were invited to apply. I think there are some sincere politicians trying to get the job done to benefit the average family and other politicians representing the 1% roadblocking the efforts. A 'for the people' politician will support Elio and what it means to affordable transportation. It's the 1% that screws it up for other 99% of us.

I am currently working with one those sincere politicians to get the Idaho MC code changed and is a major supporter of the Elio concept after he saw it.