Another Year Gone By...has Anything Changed?

[Coss]

Read online on future Elio owners that Oppenheimer has skin in the game & Roush has substantial sweat equity. Wonder who the second or more sources of funding are that await Secretary Perry's look into the Loan Program in regards to ELIO. The last two momentum headlines demand reading between the lines... Suspension of Disbelief (for the doubting Thomas's) and Electric Details! Stay tuned...

Let's see, how about Apex Systems, and IAG, and all the body panels, and the electrical, and the stereo people, and the gauge system people, and the Cooling and HVAC, and the tire people Continental, and the paint people, and the etc, and the etc, and all the others listed as major vendors that threw their hats into the ring? That work for you?

 

[Ian442]

Let's see, how about Apex Systems, and IAG, and all the body panels, and the electrical, and the stereo people, and the gauge system people, and the Cooling and HVAC, and the tire people Continental, and the paint people, and the etc, and the etc, and all the others listed as major vendors that threw their hats into the ring? That work for you?

And that right there says it for me...all these companies doing all this R and D testing and design for this vehicle aren't doing it out of charity or tax write off, or anything else other trying to make this a production vehicle.

This will happen..one way or another.

 

[Samalross]

And so they're supposed to wait 3 years before paying anyone back?
Why? Why not take the money and run? Do the 3 years worth of build, pocket all the cash, and find a country with no extradition.
This way you get a lot of them out there, you keep all the cash, and wave bye - bye to everyone, and disappear, never to be heard from again.
Perfect fairy tale ending ..

They will pay interest, but this will be long term debt. Right now they owe 149 and need another 370 million. At 1000 profit per vehicle it would take 500,000 cars to be sold to pay debt, not including interest.

 

[Ty]

" Our previous funding requirement was $312 million, which did not include approximately $64 million in supplier equipment commitments. The additional commitments have been added to the current funding requirements "
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=12029151

Obviously, Elio Motors doesn't NEED to have $300+ Million in cash on hand. They just need access to $300M in a combination of credit and obligations. If, for instance, every single supplier said "We'll front you parts and/or equipment to get started", they would only need enough money to hire people and away they go. Of course, real life doesn't work like that so what we end up with is a mix of credit, cash, and obligated funds. Obligated funds? I count at least $88 Million in "investments" that other companies are set to make.

My question is this - When Elio says they need $33 Million to start their march to production and $312 Million to make it completely to production, how much of that do they need through a loan and how much of that will be extended through credit? Are they counting things like the below in the "We need $### to get started" figures?

Aisin World Corporation of America has agreed to provide our 5-speed manual and automatic manual transmissions (AMT). They estimate the total development and equipment cost to support the project will be $76.6 million and they will invest $36.6 million in the project.

Linamar Corporation has committed to manufacture and supply the engine assembly for the Elio at our Shreveport facility. While Elio Motors will be responsible for specialized tooling and equipment, Linamar will provide an estimated $45 to $50 million in general equipment to support the production requirements.

Hyundai DYMOS will build and supply seats for the vehicle and expect to incur approximately $1.8 million in capital equipment and building renovation in our Shreveport facility.

 

[Ty]

They will pay interest, but this will be long term debt. Right now they owe 149 and need another 370 million. At 1000 profit per vehicle it would take 500,000 cars to be sold to pay debt, not including interest.

Don't forget they figured on an additional 20% profit on all accessories sold... The automatic could add as much as $200 profit for each car by itself and most people will be getting that automatic.

 

[Ekh]

And so they're supposed to wait 3 years before paying anyone back?
Why? Why not take the money and run? Do the 3 years worth of build, pocket all the cash, and find a country with no extradition.
This way you get a lot of them out there, you keep all the cash, and wave bye - bye to everyone, and disappear, never to be heard from again.
Perfect fairy tale ending ..

This is silly. Payments begin on a schedule TBD and at a rate the lenders think they can make enough money from without strangling the debtor. Some of the money will be cash, while equity will provide some as well. Since there are many players in this game, it gets extremely complicated.

Elio will take its funding as available and as needed -- no point in running interest charges until you HAVE to. So the development money gets used first, plant set up second, starting wages for factory hands third, etc. Definitely not "here's a check for the whole half billion, have a good time"

But take the money and run is practically and legally impossible. Liens, mortgages, claims on stock and stock-in-trade will all be used to secure loans.

Three to four years to pay it all down is what I'd foresee ... and that's if demand holds up. Which it will; the car's just too good a deal for folks to pass it up ... provided it's well enough built and well enough equipped.

Look for an Electric Elio in Gen2, and look for crash warning / avoidance even in Gen1. (Which will raise cost, but you can't get a 5-star safety rating (or autocycle equivalent) without it).

 

[Watashiwah]

There is no better time than right now to buy some stock!!! I'm calling my broker in 15 minutes.....we are on the cusp of big changes!!!

 

[Folks]

So things are happening. Not all projects live up to their promise. But I intend to take my last few at bats swinging lustily. We all strike out in the end, but until that time -- I'll take my chances on disappointment on the off chance I can do some good and maybe make a nickel while I'm at it.

Well said. The naysayers are condemned to run in endless little circles of limited consciousness. It's tantamount to explaining to someone that they have a banana in their ear. Their memories are so short they never see themselves repeating the same cynical statements over and over. Kind of like those big "O" types. LOL

 

[Sailor Dog]

There is no better time than right now to buy some stock!!! I'm calling my broker in 15 minutes.....we are on the cusp of big changes!!!

Agree...did you get in @ $6.21 or $6.28?

 

[imageon]

It might be time for Paul to ask Apple to back the Elio. Apple, I've heard, was look at getting into some sort of German electric car or something and with the administration leaning on them to get there asses back to America, Elio looks like a viable way to go. They could drop some product into the dash and telimetry and kick in 400 mil or so to get this rolling.
If not there are other deep pockets out there if Paul wanted to relinquish some control and partner up.
Just a thought.
MK