100 Preproduction Elio's To Be Built In December!!

[floydv]

Hmmm.
Let's see...
Let's say it's going to cost just $60,000 per unit for these.
Let's say they sell for $7000 each.

Explain to me how this increases revenue.

Must be the new PE math.

Also...

If I'm reading this right, the e-series is now kaput...
And there's not going to be jack sh*t built or tested until Q4.

Maybe I need to apply the new math to that too.

Let's use your example to do a very simplified cost analysis (accounting only for production costs):

Before [100 pre-production solely for testing]:
Total Net Cost = production cost - income from unit sales
= $60,000 X 100 - $0 X 100 = $6,000,000

After [100 pre-production sold to fleets and used for testing]:
Total Net Cost = $60,000 X 100 - $7,000 X 100 = $6,000,000 - $700,000 = $5,300,000.

In other words, Elio was planning to make those 100 for testing anyway and not for sale, which using your scenario would've cost them $6M. Now, they're looking at $6M offset by the sale of these 100 vehicles, so EM's net costs for this phase using your illustrative numbers would be $5.3M.

How is that not a good thing in your mind?

 

[Elio Amazed]

Let's use your example to do a very simplified cost analysis (accounting only for production costs):

Before [100 pre-production solely for testing]:
Total Net Cost = production cost - income from unit sales
= $60,000 X 100 - $0 X 100 = $6,000,000

After [100 pre-production sold to fleets and used for testing]:
Total Net Cost = $60,000 X 100 - $7,000 X 100 = $6,000,000 - $700,000 = $5,300,000.

In other words, Elio was planning to make those 100 for testing anyway and not for sale, which using your scenario would've cost them $6M. Now, they're looking at $6M offset by the sale of these 100 vehicles, so EM's net costs for this phase using your illustrative numbers would be $5.3M.

How is that not a good thing in your mind?

Never said it was "...not a good thing..." did I?
The 100 "pre-production" vehicles were orginally mentioned as being built to complete final tuning and training of the line.

To my knowledge, there was no mention of any other purpose (further testing) for these vehicles.

I think the original plan was either to keep them in an EM museum or scrap them.
Hate to burst bubbles, but if they did get $2,000,000 (really?) instead of $700,000 for them...

It's a drop in the bucket.

Who in their right mind is going to want to run a fleet of seconds used to tune an assembly line?
Got any information on who's actually offering to buy these (even @ $7000 each) yet?

Again, I strongly feel that there's nothing new here except for Roush and the delay.

 

[floydv]

Never said it was "...not a good thing..." did I?
The 100 "pre-production" vehicles were orginally mentioned as being built to complete final tuning and training of the line.

To my knowledge, there was no mention of any other purpose (further testing) for these vehicles.

I think the plan was either to keep them in an EM museum or scrap them.
Hate to burst bubbles, but even if they did get $5,300,000 (really?) instead of $680,000 for them...

It's a drop in the bucket.

Who in their right mind is going to want to run a fleet of seconds used to tune an assembly line?
Got any information on who's buying these (even @ $6800 each) yet?

Dude, what's your issue? You're being disingenuous. You asked, "Explain to me how this raises revenue." In other words, you were implying that selling the pre-prod units was not a good thing. I showed, using your illustrative example, that Elio would get $700,000 revenue from selling the 100 pre-prod units. That's $700K new revenue they wouldn't have gotten otherwise. I'm not saying that's profit. That's revenue that helps offset their costs of testing the 100 units. How is getting revenue to offset your costs not a good thing?

And get it right. My example based on your illustration showed $5,300,000 net costs, not $5,300,000 in revenues. If you're going to quote someone, at least get that right.

 

[Elio Amazed]

Dude, I hate being called dude when it's used in a disrespectful tone.
I suggest you curb your enthusiasm to show a little respect to me and to the forum.

You are the individual that interpreted my post to be "implying" something other than what it stated outright.
In your last response, you asked, "How is getting revenue to offset your costs" (here it is again) "not a good thing?"

Again, with caps for emphasis, I NEVER SAID (or implied) THAT IT WAS "NOT A GOOD THING".

And concerning "...get it right." (Again with the tone.)
Could you specifically point to where I quoted you as having stated $5,300,000 in revenues?
As far as I can see, the only thing I quoted in that response was your, "...not a good thing..." statement.
I sure can't find what you're referring to. You may want to consider taking your own advice.

Think about it...
OMG! We've just thought of a way to re-coup $700,000... IF we can find someone to buy the vehicles...
That we're going to use to train employees and fine-tune equipment in our new factory.
A good thing? Can't argue with that. I should get gaga over this? No.
The only significant news is Roush and the delay.

 

[Adamant]

Blah, blah, blah...the bulk of the consumer launch will have to be moved into 2017 at a date to be determine d, as the company continues to seek additional funding. Yada, yada, yada....

Pretty much. Same thing, new year.

 

[floydv]

Whatever, Amazed. Not sure what's bugging you, but I get that you're bugged. I'm off to more rational discussions.

 

[Adamant]

Somehow, this seems the time to repost this...

lol, it certainly feels that way.

 

[champsman]

I was wondering if Roush would send folks to Shreveport or will the 100 fleet units be built at Roush's facility, where ever that is?

Roush does vehicle testing for Ford and Freightliner trucks. Freightliner builds in Portland, Or. and also R&D which is right next door to Roush's yard where they test cab, chassis and custom engine design. Roush keeps the truck fleet on the move 20 to 22 hrs a day. Based on that Roush might open a yard at or next to EM Shreveport
Just my humble opinion

 

[eddie66]

The explaination for the 100 vehicles could be as simple as Elio attempting to avoid deadline fines with the Parrish for not producing jobs. Referred to in this video from KSLA awhile back. A good faith production may get him an extention on the jobs deadline until 2017.

http://www.ksla.com/clip/11107601/ksla-news-12-investigation-where-is-elio-part-ii

 

[pistonboy]

I suspect these 100 vehicles may be used for racing. Hence Roush's involvement. If so, this was probably agreed to a long time ago by the three parties (EM Roush, and customer) and it was probably agreed that Roush would be doing the initial engineering development as part of the racing development. Roush's work may be free for EM.