Is Elio Still Saying Mid 2016 To Start Production?

[cantwait]

Didn't EM'S refiling document include a 15 month timeline schedule, which starts after SEC approval and crowdsource funding is in the bank, state an anticipated 2017 production schedule...............and that is if everything goes according to plan.

That's how I read it. 15 months would mean February 2017, at the earliest now. Also, they added that if anything goes wrong, like a delay or rejection, with the ATVM loan, production will be delayed significantly.

Again, if I am reading it correctly, the ATVM loan application due diligence is on hold until the E's are completed and tested. That would mean that, six months from now, the government will look at everything to make a decision. That could mean a quick approval process, or it could drag out over several months. After approval, the remaining 9 months of the 15 month timeline would start moving. If there is no approval, it would switch over to the alternate plans, with the above-mentioned significant delay.

It all comes back to the "no obligation" clause of the reservation agreement. Didn't we all know that all of the marketing materials represented targets, and not promises? Production date, price, fuel mileage, safety, etc? Why stress over it?

 

[BADBOY]

My understanding was the ATVM loan depends on Elio showing it does not need the loan..as silly as that sounds. Should not have anything to do with the Es. Please correct me if that is not right.

 

[Rickb]

My understanding was the ATVM loan depends on Elio showing it does not need the loan..as silly as that sounds. Should not have anything to do with the Es. Please correct me if that is not right.

I believe it has to do more with EM or any applicant having the ability/resources/revenue stream to repay the loan. particularly a startup vehicle company with no product to sell that may be buried in debt. It's not silly at all.

 

[slinches]

There's a requirement that EM has to be able to pay it back without relying on additional* federal funding on top of the ATVM loan. That means they may qualify while being reliant on this loan to fund production, but would not qualify if it only covered part of the funding and they needed a second government loan to get there (needing more private or public funding might be technically acceptable, but would likely be difficult to show a high likelihood of repayment).

The other caveat is that the vehicle must meet the ultra high efficiency vehicle standard (75mpg per the DOE testing methodology). So far, EM has shown compliance by analysis, but they may need to confirm that via test before the loan is granted.



*This is my interpretation based on the wording of the requirements, but I'm not a lawyer and this isn't legal advice.

 

[BaldGuy]

My understanding was the ATVM loan depends on Elio showing it does not need the loan..as silly as that sounds. Should not have anything to do with the Es. Please correct me if that is not right.

It won't let me set the time to 6 mintues 11 seconds. Sucks can't just do a straight link anymore. O well.

 

[WilliamH]

There's a requirement that EM has to be able to pay it back without relying on additional* federal funding on top of the ATVM loan. That means they may qualify while being reliant on this loan to fund production, but would not qualify if it only covered part of the funding and they needed a second government loan to get there (needing more private or public funding might be technically acceptable, but would likely be difficult to show a high likelihood of repayment).

The other caveat is that the vehicle must meet the ultra high efficiency vehicle standard (75mpg per the DOE testing methodology). So far, EM has shown compliance by analysis, but they may need to confirm that via test before the loan is granted.



*This is my interpretation based on the wording of the requirements, but I'm not a lawyer and this isn't legal advice.

That is also what I thought, but more and more feeling that DoE makes up the requirements as they go.
But what the heck is the "75 mpg DoE test".
I've looked for it but never found it as such.
Is that the EPA test suite?

 

[slinches]

It's the test they specify (which one that is, I forgot)

ETA: The DOE specifies the NHTSA test. (mileage ratings on the sticker are from the EPA)

 

[RUCRAYZE]

and which part of dysfunctional government is someone missing??
After they get their "Elio's" in line, all the paperwork is reviewed, handshakes, head nodding,approval will rest in the lap of some hack who considering their options- doing nothing will be the safest choice.
They-all can't get together to repair the roads and bridges! If the future of this project is government loan assurance ,we are in deep dodo.
Assurances to the contrary that the loan is a deal breaker, IF other funding sources are not forthcoming there might be an additional auction for the 25 units, -Speaking of auctions, anyone hear the millions that the EBAY auction generated :-) the full time workers that were prepping the equipment for sale?

 

[RUCRAYZE]

It may be wise from the standpoint of them looking like fools every time they have to push back the date, but what is supposed to keep people's interest if there's no carrot on a stick? Most people need something to look forward to...

You don't keep folks interest by throwing out what might not be achievable - you get their attention and interest at the LA Car show, good PR, and a positive curve. EM has learned their lesson about putting dates/goals out there.
IF the E is not a big hit this week....................

 

[BaldGuy]

Actually, just off there website on 11-17-15.
Say hello to Elio. The ultra-high-mileage, sleek two-seater for an incredibly affordable base price. Coming fourth quarter 2016!