LillyMayPatterson #1685 & #5648
Elio Addict
Tis the season for miracles.
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Elio's time has come again?
- Thread starter DScott
- Start date
RSchneider
Elio Addict
The debt would clear but all assets would go up for auction. So, someone would have to buy all of the assets. Then, all of the CAD data is way out of date, so that would all have to be updated and then all of the people that did all of that work are long gone. So, it's back to try to reverse engineer the thing. After that, then there needs to be an assessment on what was actually done or what was done to make it look complete. As we all know, they were a long way from having just one single complete vehicle. Something as simple as the body. Zero tooling as it was just fiberglass. Engine compartment was full of stuff they bought from Jegs or Summit. Then there's the vendor issue and I bet many were shafted by Elio, so now onto other vendors as the old ones will not want to get shafted again.
Then there's the big issue. What price to sell it at? What are you willing to pay for a complete Elio? As we all found out, it cost Arcimoto $60K to build each unit. That was no doors, HVAC and the comforts that we all demand. With Elio I suspect $80K per unit to build. Yes it can go down over time but with that, who wants to lose $60K per unit? In the end, $20K would be the minimum price it would sell for today.
On top of that, Paul would be required to prove with a third party that it actually gets 84mpg using the same standard as cars. Elio is competing with cars. Also, Paul Elio has a bad reputation because of this failed company and many will never want anything like what he has to do with. Thus why he sells used cars as opposed to selling the Elio to legit companies. Nobody want's to touch it. Plus, those 57K non refundable reservations will be gone. Thus start over again and nobody will put down any money again. Get burned once, not again.
It would actually be easier to start over from scratch than take on the albatross of Elio. If it was really easy, Paul would have declared bankruptcy but sell the assets ahead of time. Yet he has not. If you can't find a buyer, then what's next?
dbacksfan81
Elio Aficionado
There are two types of business bankruptcy, Chapter 11 and Chapter 7.
Chapter 11 is reorganization
"Chapter 11 bankruptcy is a form of U.S. bankruptcy that allows a business or individual to reorganize their debts and financial affairs while continuing to operate, rather than being forced to sell off all assets (liquidation). It is often referred to as "reorganization bankruptcy".
Elio Motors is not in operation so they do not have any income through sales or accounts receivable showing money coming in.
The other is Chapter 7 which is a liquidation of assets and ending operations.
Chapter 7 is a liquidation process for businesses that wish to terminate operations. Unlike individuals, corporations, partnerships, and LLCs do not receive a discharge of their debts, meaning the business technically remains liable even after closing.
Elio Motors has very few assets. They have five 15 year old prototypes of which only two were powered but not fully functional. Three of them only have scrap value, and the two that were barely drivable have little value.
The GM plant and offices in Phoenix were rented with the Phoenix office being nothing more than a mail drop, they didn't even own the furniture in the office. At the GM plant Paul was allowed to sell off the manufacturing tools they didn't deem usable and the rest were used as collateral for loans that were never paid back, so they were sold off, most likely becoming scrap metal, to attempt to satisfy the loan debt.
The only other asset is the one off unproven engine that IAV built and more than likely has not even been run in close 10 years which is an eternity in engine design and development. There are too many other 0.9 to 1.3 litre engines already in production to give it any value. The cylinder head and the block are a useless unicorn that is so far behind everything else it would make a better boat anchor than a usable engine.
The bigger issue is that three wheeled vehicles are a niche vehicle in a niche market, and as much as people want Kei cars and trucks to produce them to meet US standards is difficult and expensive, and while some are legal because they are 25 model years old or older, no one is rushing to support them with repair parts, and because of the lack of support by the manufacturers of them insurance companies are hesitant to insure them. Damage the windshield on one of the Kei trucks will require sourcing from overseas. Have a minor accident in one and it will more than likely total the vehicle since there are no replacement parts available in the US.
RSchneider
Elio Addict
On top of this, when he sent out all of those emails, all everyone found was a website that is no longer with us, a CEO that has disappeared off the planet but did do a podcast confirming it's a failed startup. So, even if I had $500M and wanted to invest in Elio Motors, I have nobody to talk to and nowhere to send the money. This is why contact info is of the upmost priority. Then those other companies can at least talk to someone and find out the real story plus where to send their money. Unless that happens, then this whole idea might sound great but since Paul refuses to talk to anyone, then it's best to assume, he wants to be left alone and start the next Elio Motors where this time it'll be right and where the "markets are not broken." That's what killed Elio Motors as Paul told everyone here via a video.
Think about it, if you won $1B in the lottery, who would to call to send your winnings too, to get Elio Motors up and running again?
Think about it, if you won $1B in the lottery, who would to call to send your winnings too, to get Elio Motors up and running again?
JohnJ
Elio Addict
I vote that a new company be created to build an Elio type vehichle and that RScjmeider and dbacksban81 be CEO and President.
Sonoran Sam
Elio Addict
Can I turn wrenches on the prototypes?? Just don't ask we to weld...
RSchneider
Elio Addict
I already planned it out. It will be like the Elio but just a few differences. It'll be an EV with hub motors. Still have all of the luxuries of a new car you buy today. Contract out the manufacturing. Then get them on the road. With Arcimoto, they had a successful plan. Get it certified by the US Goverment and then cross the production finish line. Once those hit the road, they sold themselves. The price will start at $50K but it will go down to $20K because the demand (because they are on the road) will go up and then the price will go down because of volume (thus why Arcimoto has hit 25K units this year and the price of a new one dropped from $20K to $12K).
Now, Telo has raised $30M and built three prototypes and have a contract manufacturer to build the production ones. I will need $30M up front for Series A funding. So, who here can do that and we can get this on the road. I have no idea of who would invest in this but someone else I bet, does.
Ok, but hub motors will be a mistake.
RSchneider
Elio Addict
Why?
The sprung/unsprung weight ratio would be unfavorable.