Jalopnik Claims Elio Has Only $100k In Bank, $123 Million In Debt

[Elio Amazed]

Whether or not that's true, it's irrelevant. It's still the program's purpose to accept some financial risk to accelerate the progress of high fuel efficiency vehicle manufacturing.

You may feel that these, as well as several other significant details, are irrelevant. Fine.
I think it's important that individuals be informed of the process and the differences.
Just trying to pass on some knowledge and fight misinformation here. Next...

 

[slinches]

There are significant details and insignificant ones. I just want to be clear which are which.

 

[Elio Amazed]

There are significant detail and insignificant ones. I just want to be clear which are which.

Well then, I guess the significant ones would be the ones that can be taken out of context...
To support whatever theory you want to put forward, of course.

 

[slinches]

Clever. I meant in the context of EM meeting their goal to deliver production vehicles.

 

[Horn]

Issues with ATVM Lending
"Neither GM nor Chrysler is in the current list of loan recipients. Chrysler had a loan request of $3.5 billion pending with DOE, but withdrew it in 2012.51 General Motors applied for three ATVM loans totaling $10.3 billion in July 2009, when it was operating under bankruptcy court protection, but according to a GM filing, DOE determined that the company did not meet the viability requirements for Section 136 loans. Several months later, the company submitted an application for $14.4 billion of loans.52 DOE did not make a decision, and on January 27, 2011, GM withdrew its application. At that time, GM’s then CFO Chris Liddell said, “withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet."

Since 2008, they have had 108 companies file for the loan. ONLY 5 received it. Nissan, Ford, Tesla, Fisker, and The Vehicle Production Group LLC.
2 of them defaulted/went under. 60% success rate. That isn't good. Only 5% of companies were accepted. There is a lot of money left in the loan program, but they HAVEN'T GIVEN OUT A LOAN SINCE 2011. Honestly it just looks like the program is dead aside from getting payments from Nissan and Ford. Tesla has already repaid their loan.

Think about it guys. It isn't hard to see. They aren't going to get it.

https://fas.org/sgp/crs/misc/R42064.pdf
https://en.wikipedia.org/wiki/Advan...turing_Loan_Program#Unsuccessful_applications

Before you bash this post. Actually look at the first link.

 

[Travelbuzz1]

Issues with ATVM Lending
"Neither GM nor Chrysler is in the current list of loan recipients. Chrysler had a loan request of $3.5 billion pending with DOE, but withdrew it in 2012.51 General Motors applied for three ATVM loans totaling $10.3 billion in July 2009, when it was operating under bankruptcy court protection, but according to a GM filing, DOE determined that the company did not meet the viability requirements for Section 136 loans. Several months later, the company submitted an application for $14.4 billion of loans.52 DOE did not make a decision, and on January 27, 2011, GM withdrew its application. At that time, GM’s then CFO Chris Liddell said, “withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet."

Since 2008, they have had 108 companies file for the loan. ONLY 5 received it. Nissan, Ford, Tesla, Fisker, and The Vehicle Production Group LLC.
2 of them defaulted/went under. 60% success rate. That isn't good. Only 5% of companies were accepted. There is a lot of money left in the loan program, but they HAVEN'T GIVEN OUT A LOAN SINCE 2011. Honestly it just looks like the program is dead aside from getting payments from Nissan and Ford. Tesla has already repaid their loan.

Think about it guys. It isn't hard to see. They aren't going to get it.

https://fas.org/sgp/crs/misc/R42064.pdf
https://en.wikipedia.org/wiki/Advan...turing_Loan_Program#Unsuccessful_applications

Before you bash this post. Actually look at the first link.

It's only 185 million, EM has a very good chance of getting the loan.

 

[slinches]

Horn, I think that speaks to the political hurdles that have been keeping the process held up.

Personally, I think one of the higher-ups in the ATVM program or loan office is simply refusing to process any loans because it's a risk to their career. Why take a chance on loaning money when you can keep your job indefinitely by stonewalling. If another startup fails, it would make the whole program look like a huge failure and the proverbial heads will roll. They won't even loan to the big three because it would look bad politically (and the established companies stopped applying for the same reason).

 

[Travelbuzz1]

Horn, I think that speaks to the political hurdles that have been keeping the process held up.

Personally, I think one of the higher-ups in the ATVM program or loan office is simply refusing to process any loans because it's a risk to their career. Why take a chance on loaning money when you can keep your job indefinitely by stonewalling. If another startup fails, it would make the whole program look like a huge failure and the proverbial heads will roll. They won't even loan to the big three because it would look bad politically (and the established companies stopped applying for the same reason).

A group of congressmen halted the loans since 2014 and no one has recieved a loan. This administration needs all of the good PR that they can get to get jobs for the working class to PAY TAXES to lower the debt. If last Saturdays demostrations did not convince you that this administration is in deep trouble with the general public, nothing will.

 

[Elio Amazed]

A group of congressmen halted the loans since 2014...

News to me. Link please.

 

[slinches]

Travelbuzz, what do you mean by "halted"? The ATVM program still has authorization for several billion in loans as far as I'm aware.