No Guarantees...

[Rickb]

I agree with your summarization with exception to your speculation about EM having significant backers lined up. Serious venture capitalists would never have waivered their EM financial support unless the deal providing for the GM Plant and equipment as EM's future production facilities actually fell through. (personal speculation)

I found reading through the Caddo minutes and statements made by Mr. Elio and Mr Lichter relating to Elio Motors plans for production to persuade the Commission to invest the $7.5 Million for the GM Plant a very interesting read. Marketing strategy at it's best. The timeline is not working out as planned for the Caddo Parish's investment in promised jobs. Hopefully, it's better late than never for Caddo, but as the thread title states, No Guarantees...

 

[Rickb]

Try reading this Press Release ---> http://www.eliomotors.com/press-release-elio-completes-plant-deal/ <--- from Elio. It is pretty close to what I dug up from other sources other than the fact that I found the deal with IRG saved Cado Parish the cost of ripping down the old plant.

Doesn't have any relevance to EM's failure to fullfill their contract obligation.

 

[KD]

You have some things very mixed up. Not that much of the whole deal in Shreveport is easy to follow, but in a nutshell the following is how Elio Motors was able to lease the former GM Hummer plant in Shreveport.

Pretext: Caddo Parish gave the land the former GM Hummer plant is on to GM because of GM's promise to bring lots of high paying manufacturing jobs to the Parish. Which they did, for awhile. From this point onwards, the chain of events and ownership of the property and improvements to it is harder to follow.
1) RACER Trust was created by the US Bankruptcy Court to deal with all the automotive industry fall-out after the recession. They are also required to take the local communities wishes into consideration as part of their mandate to return large bankruptcy properties to productive use.
2) Caddo Parish created a separate entity called the Industrial Development Board (IDB) to separate the Parish directly from potential liabilities and purchased the former GM plant from RACER Trust for a rock bottom price $7.5million, (with strings attached), strings include the need to create jobs, with some preference to manufacturing especially automotive. Caddo Parish agreed to that because they had (have) a scrap offer of $8 million on the plant, and over $4 million for the land it sits on.
3) Stu Lichter (Angel investor for Elio Motors) who owns Industrial Realty Group (IRG) is leasing the former GM plant from Caddo Parish's Industrial Development Board (IDB) for $25,000/month, to keep things real, in the fourth year of leasing the plant IRG's rent will balloon to $725,000/year. [This was done to keep a fire under Stu Lichter to get the entire property back into use, even if Elio can't start production.]
4) Elio Motors is "subletting" the factory space from IRG, and was able to "purchase" the used manufacturing equipment for manufacturing vehicles (this is a string) at a rock bottom price [basically they did not pay for it, well they did, on paper, but it's to come out on the end when they sell excess equipment.] To be more clear, part of RACER Trust's requirement is that they recoup $2.2million by this past September for equipment "sold" to Elio Motors, or IRG (aka Elio Motors Angel investor) would face mounting penalties for not paying up. [the specifics are not published, and I believe part of a NDA.]
5) Part of Elio Motors agreement (through IRG) with both RACER Trust and IDB for subletting the space at a very reasonable price and "purchasing" a large amount of equipment is that it would have made a payment on the equipment, and begin hiring 1,500 within 36 months from the signing of the deal with Caddo Parish's IDB, or face a stiff fine of $5,000 for each of those 1,500 jobs not filled (have you done the math yet?). This past spring, Elio asked for and received an extension from RACER Trust on making their equipment payment, but not on hiring. Elio Motors will need to begin hiring no later than August 2016 or face the fine's for each job not created as they agreed.

Most of this is easily found, after hours of drudgery reading through meeting minutes of Caddo Parish, as well as some of the published notes of RACER Trust, and to a lesser extent the press.

PS: I think Elio Motors had some significant backers lined up in 2012/13 that would have allowed them to do what they are just getting to now. I think the relatively brief, vitriolic and pointless law suit by former Caddo Commissioner Stephaine Lynch back in 2013 virtually derailed and almost caused Elio Motors to fail. That the company did not fail, so far, is, in my opinion one the things I think significant to the Elio story, and a good sign as to the company desire to get to production.

This is some good information for those of us relatively new to the Elio dream! This is the kind of research that would make me sleepy!

 

[Ekh]

Could I ask where you are getting your information?
Do you have independent confirmation that the ATVM is a slam dunk if the P5 or the E's get 75mpg?

From the SEC resubmission, it does look like Elio is not expecting to start working on the funding for the additional $240 million until the E's are built and tested, so it seems reasonable that that information would go to the ATVM people as soon as possible.


Where did you see that the P5 has a governor? I must have missed that.

No comment.

 

[Ekh]

You have some things very mixed up. Not that much of the whole deal in Shreveport is easy to follow, but in a nutshell the following is how Elio Motors was able to lease the former GM Hummer plant in Shreveport.

Pretext: Caddo Parish gave the land the former GM Hummer plant is on to GM because of GM's promise to bring lots of high paying manufacturing jobs to the Parish. Which they did, for awhile. From this point onwards, the chain of events and ownership of the property and improvements to it is harder to follow.
1) RACER Trust was created by the US Bankruptcy Court to deal with all the automotive industry fall-out after the recession. They are also required to take the local communities wishes into consideration as part of their mandate to return large bankruptcy properties to productive use.
2) Caddo Parish created a separate entity called the Industrial Development Board (IDB) to separate the Parish directly from potential liabilities and purchased the former GM plant from RACER Trust for a rock bottom price $7.5million, (with strings attached), strings include the need to create jobs, with some preference to manufacturing especially automotive. Caddo Parish agreed to that because they had (have) a scrap offer of $8 million on the plant, and over $4 million for the land it sits on.
3) Stu Lichter (Angel investor for Elio Motors) who owns Industrial Realty Group (IRG) is leasing the former GM plant from Caddo Parish's Industrial Development Board (IDB) for $25,000/month, to keep things real, in the fourth year of leasing the plant IRG's rent will balloon to $725,000/year. [This was done to keep a fire under Stu Lichter to get the entire property back into use, even if Elio can't start production.]
4) Elio Motors is "subletting" the factory space from IRG, and was able to "purchase" the used manufacturing equipment for manufacturing vehicles (this is a string) at a rock bottom price [basically they did not pay for it, well they did, on paper, but it's to come out on the end when they sell excess equipment.] To be more clear, part of RACER Trust's requirement is that they recoup $2.2million by this past September for equipment "sold" to Elio Motors, or IRG (aka Elio Motors Angel investor) would face mounting penalties for not paying up. [the specifics are not published, and I believe part of a NDA.]
5) Part of Elio Motors agreement (through IRG) with both RACER Trust and IDB for subletting the space at a very reasonable price and "purchasing" a large amount of equipment is that it would have made a payment on the equipment, and begin hiring 1,500 within 36 months from the signing of the deal with Caddo Parish's IDB, or face a stiff fine of $5,000 for each of those 1,500 jobs not filled (have you done the math yet?). This past spring, Elio asked for and received an extension from RACER Trust on making their equipment payment, but not on hiring. Elio Motors will need to begin hiring no later than August 2016 or face the fine's for each job not created as they agreed.

Most of this is easily found, after hours of drudgery reading through meeting minutes of Caddo Parish, as well as some of the published notes of RACER Trust, and to a lesser extent the press.

PS: I think Elio Motors had some significant backers lined up in 2012/13 that would have allowed them to do what they are just getting to now. I think the relatively brief, vitriolic and pointless law suit by former Caddo Commissioner Stephaine Lynch back in 2013 virtually derailed and almost caused Elio Motors to fail. That the company did not fail, so far, is, in my opinion one the things I think significant to the Elio story, and a good sign as to the company desire to get to production.

Admirably clear exposition, John. Lucidity is still occasionally useful, and this is a fine example of a time where the lamp was burning brightly.

 

[KD]

No comment.

 

[cantwait]

No comment.

Okay. No independent confirmation of ATVM info, and you have an inside source at Elio about the governor. Got it. Thanks.

That is disappointing news about the P5. I had hoped that it would be fully functional, in spite of the other comments here and by Elio that it would be a tour car.

 

[Rickb]

Rick did you forgot the 1/4 teaspoon of reality for automotive start ups with that pinch of skepticism?

John, that's funny. Even though I felt the Elio's Production date was locked in and the "Time has finally Come" after following EM since 2008, I'm only in at the $100 refundable level, my top dollar down payment on a vehicle that doesn't exist. That is my heaping 1/4 teaspoon of reality with big pinch of skepticism when it comes to vehicle startups. I have to see it to believe it.

 

[Rickb]

Comment: There is no 100% guarantee except that the P5 may not be fully functional.

The P5 isn't going to be fully functional?

 

[Ekh]

Okay. No independent confirmation of ATVM info, and you have an inside source at Elio about the governor. Got it. Thanks.

That is disappointing news about the P5. I had hoped that it would be fully functional, in spite of the other comments here and by Elio that it would be a tour car.

No comment means .... "no comment."