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

[JEBar]

I forgot to mention before but that Elio rep today said they hit 40,000 reservations. That figure just didn't make it to the Elio site yet.

not surprised at the surge .... I suspect that a bunch of them came as a result of the positive news about the engine .... hopefully the momentum won't be negated by the news of the production delay .... it makes sense to me to believe that the higher the number of reservations, the easier it will be to raise the capital necessary to move forward

 

[Catia]

not surprised at the surge .... I suspect that a bunch of them came as a result of the positive news about the engine .... hopefully the momentum won't be negated by the news of the production delay .... it makes sense to me to believe that the higher the number of reservations, the easier it will be to raise the capital necessary to move forward

By the end of the year, we should hit between 50,000 to 60,000 reservations....or maybe more.....

 

[Jeff Porter]

Kind of looking like that is what the out come will be.

http://gas2.org/2013/08/16/financials-show-that-elio-motors-is-really-probably-not-gonna-happen/
http://www.ksla.com/story/20499338/lessons-learned-from-elio-motors-and-pontiac-Michigan

The list goes on and on seems there was more to the story all a long

Hi Smitty,

Thanks for the information. The first link is from Aug 2013, so it's quite dated information that doesn't really help much.

 

[Rickb]

not surprised at the surge .... I suspect that a bunch of them came as a result of the positive news about the engine .... hopefully the momentum won't be negated by the news of the production delay .... it makes sense to me to believe that the higher the number of reservations, the easier it will be to raise the capital necessary to move forward

Imagine how that bunch feels with the good news engine announcement one day and the bad news production delay announcement the next.

 

[CompTrex]

Imagine how that bunch feels with the good news engine announcement one day and the bad news production delay announcement the next.

Yeah, had I gone all in based on the engine news then seen the delay the next day?
That would have 'bummed me out' to say the least...

 

[creekstone]

Paul purchased the GM equipment from auction so it had to be much cheaper than appraised so I would think GM would buy it for more than PE paid and still get it cheaper than appraisal. Hope GM is really interested.

Page 2 of this document, dated 8/2/13, will give you an idea of what Elio paid for the equipment: http://www.caddo.org/AgendaCenter/ViewFile/Minutes/08022013-145

She (Commission member Lynch) also inquired about the value of the equipment that was sold to Elio Motors. Mr.

Rasher said that the value was $26 million, and it was all sold to Elio Motors. Elio Motors paid $3 million

six months ago; the next payment that is due is the $2.2 million payment for equipment. Three months

later, a payment of approximately $175,000 per month is to be paid. The final payment should be made

approximately 30 months from now.

Bruce Rasher is the Redevelopment Manager for RACER Trust, the government entity that handled the sale of the equipment and plant. http://www.racertrust.org/About_RACER/Questions_and_Answers

GM was NOT eligible to buy the equipment then. They may not be eligible now.

 

[creekstone]

My question was why was there no interest in this equipment when GM filed for bankruptcy and the billion dollar hand outs?

I have no idea if there were other parties interested in the equipment at the time Elio purchased it. However, RACER Trust would have given preference to anyone that would keep the equipment in Shreveport and provide jobs. Racer Trust is short for Revitalizing Auto Communities Environmental Response Trust.

 

[goofyone]

Page 2 of this document, dated 8/2/13, will give you an idea of what Elio paid for the equipment: http://www.caddo.org/AgendaCenter/ViewFile/Minutes/08022013-145

She (Commission member Lynch) also inquired about the value of the equipment that was sold to Elio Motors. Mr.

Rasher said that the value was $26 million, and it was all sold to Elio Motors. Elio Motors paid $3 million

six months ago; the next payment that is due is the $2.2 million payment for equipment. Three months

later, a payment of approximately $175,000 per month is to be paid. The final payment should be made

approximately 30 months from now.

Bruce Rasher is the Redevelopment Manager for RACER Trust, the government entity that handled the sale of the equipment and plant. http://www.racertrust.org/About_RACER/Questions_and_Answers

GM was NOT eligible to buy the equipment then. They may not be eligible now.

I have no idea if there were other parties interested in the equipment at the time Elio purchased it. However, RACER Trust would have given preference to anyone that would keep the equipment in Shreveport and provide jobs. Racer Trust is short for Revitalizing Auto Communities Environmental Response Trust.

We have a winner!

Because of their stated goals RACER Trust gives preference to a company who can buy, or find a buyer for, both the equipment and the property in essentially one deal with even more priority going to a company who is intent on building vehicles using the plant site and equipment. This preference is what essentially gave EM the deal even if they could not pay more and is also the basis for why Paul Elio says he paid too much in paying $26 million for the equipment as he was essentially bidding against himself as nobody else had the kind of priority consideration that EM had in this process.

 

[creekstone]

I don't think EM paid $26M for the equipment. I think that was a RACERS Trust valuation. I also think GM spent more than that initially.

Based on Bruce Rasher's response at the 8/13 meeting, Elio paid $3M six months prior. The next payment due (shortly) was $2.2M. And monthly payments of $175K were to start in three months and end in 30 months.

My rough calculation for the equipment purchase is $10M ($3M + $2.2M + $4.8M). And, EM will own the equipment free-and-clear in the spring of 2016 (assuming payments went/go as planned).

 

[goofyone]

I don't think EM paid $26M for the equipment. I think that was a RACERS Trust valuation. I also think GM spent more than that initially.

Based on Bruce Rasher's response at the 8/13 meeting, Elio paid $3M six months prior. The next payment due (shortly) was $2.2M. And monthly payments of $175K were to start in three months and end in 30 months.

My rough calculation for the equipment purchase is $10M ($3M + $2.2M + $4.8M). And, EM will own the equipment free-and-clear in the spring of 2016 (assuming payments went/go as planned).

Oops, you correct. I must have read that a bit too quickly. [emoji4]