January 15, 2015 Delay And Delay Repercussions Discussion - All Others Will Be Combined!

[BADBOY]

It would be sweet if the gov't decided to jump on this and not allow delay or possible collapse and pushed through the loan. I don't see why it has to take so long. I probably should just take a few months away from this MB to regroup but no football to discuss until late spring. Guess I can concentrate on the novel I am writing.

Still cannot understand if PE has $60 m why he could not just keep on target until Gov't says yes or no unless investors not willing and that equipment sale is not as sure as hoped.

 

[skygazer6033]

I think an investor pulling out is a good possibility. Another possibility is simply a miscalculation of the saleability of the surplus equipment. While that stuff is extremely expensive there is also an extremely limited market. (Maybe the Chinese might need it to build luxury SUV's) Otherwise they may end up selling it by the pound.

 

[Sam]

This will cheer you up a little bit. In today's blog, EM states that the surplus inventory now on sale is worth $17 million dollars. They also state that it represents only 15% of the total surplus inventory that they can sell. Assuming the value of the stuff is evenly divided (a large assumption), that puts the total value of the surplus inventory at $113 million. That will go a loooong way towards filling the gap needed to reach production.

Anyone can say anything is worth any amount they want. It's actually only worth what somebody pays for it. I can put the wife's wrecked Cadillac on Ebay and ask for a million dollars. Probably gonna be awhile before it sells.

 

[Sam]

That is an idea, but most trust fund billionaires are 1% ers that made their money in the oil and automobile industry so Elio doesn't seem a good matchup to their interests.

Comforting to know Elon Musk is watching out for us. I think AI may have more common sense that human intelligence and that makes no sense whatsoever.

Is this story about the billionaires really true? I mean can you prove that statement or is it just left wing BS?

 

[Horn]

Anyone can say anything is worth any amount they want. It's actually only worth what somebody pays for it. I can put the wife's wrecked Cadillac on Ebay and ask for a million dollars. Probably gonna be awhile before it sells.

Yep! Good example is used cars on craigslist. "Kbb says its worth 5k"...as they go for 2500 on CL

 

[Ty]

The equipment has been there for years. Don't you think any company needing (WORN OUT EQUIPMENT) would have already contacted them by now. Face it, no one wants it. Paul paid to much , he purchased something that no one wants. Ebay is the last straw.
I really think the big motor companies are a little behind Paul not getting the funding.

Elio bought the equipment and rented the factory when they could. Comas went through the equipment to see what Elio would need to keep and what should be sold. Then, they moved the equipment for sale. Nobody was allowed to remove anything from the property until all the deals went through. That equipment is the most modern equipment that GM had. It is relatively new.

The problem is finding a buyer who has a factory but needs some more equipment. I can't believe there is a large market there.

 

[BADBOY]

Elio bought the equipment and rented the factory when they could. Comas went through the equipment to see what Elio would need to keep and what should be sold. Then, they moved the equipment for sale. Nobody was allowed to remove anything from the property until all the deals went through. That equipment is the most modern equipment that GM had. It is relatively new.

The problem is finding a buyer who has a factory but needs some more equipment. I can't believe there is a large market there.

Does anyone know if the equipment can be used for other type work? For example, there is a strong demand for used equipment like backhoes, cherry pickers, small cranes etc. Big boys auction them and smaller companies or individuals like my buddy snap them up. Can any of this stuff be used on non vehicle tasks? PE has said he overpaid but still cheaper than going with new equip.

 

[goofyone]

It would be sweet if the gov't decided to jump on this and not allow delay or possible collapse and pushed through the loan. I don't see why it has to take so long. I probably should just take a few months away from this MB to regroup but no football to discuss until late spring. Guess I can concentrate on the novel I am writing.

Still cannot understand if PE has $60 m why he could not just keep on target until Gov't says yes or no unless investors not willing and that equipment sale is not as sure as hoped.

I believe just about everyone would love to see the government loan come through as that would pretty much solve EM's funding issues in one swoop and everything would push forward as fast as possible towards production. Hopefully we do get good news on this front relatively soon.

Just to clarify EM does not have $60m on hand that is just what they have raised, and mostly used, to get the project to this point. They have several million dollars on hand however this is only enough to keep operating the company and tour however everything else needs to be slowed or halted as they do not want to burn through it too quickly.

The way it was explained at the town hall is that the tight spot EM is in now is pretty much directly caused by it taking longer to get the old equipment on the market and sold than they expected as that money is what their plan called for them to be using to complete the engine and vehicle development program and finance operations ahead of production.

 

[goofyone]

Does anyone know if the equipment can be used for other type work? For example, there is a strong demand for used equipment like backhoes, cherry pickers, small cranes etc. Big boys auction them and smaller companies or individuals like my buddy snap them up. Can any of this stuff be used on non vehicle tasks? PE has said he overpaid but still cheaper than going with new equip.

This is a very good question. From a quick look at the Ebay page it appears to be mostly generic manufacturing equipment which is not really useful to your buddy however is likely very useful to companies in the manufacturing sector. I know a lot of this type of used equipment ends up being purchased by people intending to ship it to be sold in South America, Asia, and even Africa where they need this equipment but it may be too expensive for them to reasonably afford brand new.

http://stores.ebay.com/automationrecovery1/

 

[RUCRAYZE]

the only viable market I can possibly see is India.
Maybe, if besides EBAY, they put it on New Delhi Craig's list , they might get some nibbles.
I can't imagine another production auto manufacturer risking using used equipment. Don't know what it's called but supplies/deliveries are timed to meet production, and with used equipment, I think there is too much risk.
the upside of Ebay is their return policy, so if the buyer was unhappy with the equipment, he could return it (lol at buyers cost)
watching to see how that gazillion pound two story piece sitting in sand- fits on a flatbed !!