News Flash! Jerome Gets His Licks In With Jalopnik!

[pistonboy]

Consider the following hypothetical situation.

EM announces it must go out of business.
GM and Ford rush in and buy it (if EM will sell it to them).
They (GM and Ford) bring it into full production (quickly with their money)
With their combined lobbying power they get two things done:

Get the Elio classified as autocycle.
Enable autocycles to participate in the carbon credits program, giving them much carbon credits.​

They honor all reservations and promises/agreements to reservationist.
They agree the Elio can be serviced at either Ford, Chevy, or some other dealers (leaving out poor Pep-Boys).

Edit: I have since created a new thread entitled "Failure Scenarios".
This post can be found there.
Thanks Elio Amazed. I should have created a new thread before your comment.

 

[Elio Amazed]

Consider the following hypothetical situation.

EM announces it must go out of business.
GM and Ford rush in and buy it (if EM will sell it to them).
They (GM and Ford) bring it into full production (quickly with their money)
With their combined lobbying power they get two things done:

Get the Elio classified as autocycle.
Enable autocycles to participate in the carbon credits program, giving them much carbon credits.​

They honor all reservations and promises/agreements to reservationist.
They agree the Elio can be serviced at either Ford, Chevy, or some other dealers (leaving out poor Pep-Boys).

Not Likely.
They'd have to start with a $123M deficit.
That's not even including the purchase price.
Then add another $300M to even start production.

More likely is someone buying the few bankrupt assets for pennies on the dollar.

They'd get a clean slate on current obligations and debts.
They could then simply pay what it takes to go into production.

They'd save a bundle on the "purchase price" and on waiving debts and obligations.
And all they'd have to do is wait it all out like a vulture sitting on a branch.