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Discussion in 'General Elio Discussion' started by Elio Amazed, May 11, 2018.
Reason has little to do with this, sadly.
For cripes, sake, there is no mystery here. They can't get the ATVM people to budge on the two billion in cash they have to lend. The loan board think they are caretakers of a capital fund rather than tech enablers. Elio is operating on literally no cash, and this is the last chance.
Oddly, the broke person needs the loan most. Which metaphor applies quite perfectly to how the ATVM loans were distributed. And out of all the rich loan recipients, only Tesla paid their loan back. Ford has over 20 billion in cash, and they haven't paid their ATVM loan back - nor have they made the small electric cars they were supposed to make with that loan, a little fact people never seem to recall. Ford is making money off that loan balance, and has done nothing. Take it from Ford and give it to Elio, who will actually make a darned car.
Look at my post where I posted a link to the ATVM loan. They DID NOT QUALIFY FOR THE LOAN EVEN IF THEY CROSSED ALL THEIR Ts AND DOTTED THEIR Is.
Ford has been paying on the loan. You do not give a loan and get frustrated if the person/company doesn't pay it off early. Also, they gave the loan to a company that is expected to pay it off. It is safer to give a loan to a company or person that is bringing in money than to one that isn't.
Here is what they have done with the money according to energy.gov...... https://www.energy.gov/lpo/ford
While it is true that Tesla paid them back early, the reason they did so was purely profit motivated on Tesla's part. If they hadn't, then certain parties were going to get their hands on HUGE amounts of Tesla stock at absurdly discounted prices.
Ford is paying back the loan as agreed, and on schedule.
People don't recall those because THAT'S NOT TRUE! More inaccurate, and blatantly false information. Ford's loan was NOT for making electric cars. The ATVM program was NOT a program that was exclusive to electric cars, nor anything explicitly for small cars. Ford was required to list, in detail, exactly what they were going to do with the money, and then do that with it, with stict reporting standards to ensure that they really did. Ford got their loan to modernize manufacturing methods, and improve the fuel economy of those engines. Which they did.
Ford went to the ATVM with a detailed plan for what to do with the money. The ATVM folks bought off on that plan, and started doling out the cash. Ford then went out did exactly what they said they were going to do, which is why the ATVM people kept giving them the money. Then Ford started paying the loan back, exactly on plan. Both sides of the agreement did eactly what they said they were going to do, according to the terms paid out for, and by, both of them. The fact that those terms weren't the ones you fantasize them to be is your problem.
Actually, Ford didn't take the ATVM loan to build cars:
In September 2009, the Department of Energy issued a $5.9 billion loan to the Ford Motor Company to upgrade 13 facilities in Illinois, Kentucky, Michigan, Missouri, New York, and Ohio.
Ford has manufactured vehicles at ATVM-supported facilities that are expected to save 268,000,000 gallons of gasoline and prevent 2,380,000 metric tons of carbon dioxide emissions each year.
Both facts are from : https://www.energy.gov/lpo/ford
Ford's loan isn't due until 2022. They are on schedule and it wouldn't make much sense to pay off a direct loan ahead of schedule. Tesla's and Nissan's loans were significantly lower and affected fewer projects and people.
Facts are fun.
I'm in a similar situation. I have 4 investment properties, thus 4 mortgages. I could take all of my stocks cash them in and use up all my savings to pay them off today. I seriously doubt the bank will start handing out loans to the poor because I did that. The bank has plenty of money to loan and it really doesn't make any difference to the people that need the money if I pay off early or just pay to what I agreed to do. What i am doing is watching the performance of my investments vs my loans. Right now it make no sense for me to pay off the loans. I do this because I want to make money as opposed to just leaving it on the table for someone else to make.
As for the ATVM loan, Tesla paid it off 9 years early but did that allow someone else to get a loan? Nope. The DoE had more than enough to loan out money and Tesla paying it back early was just a drop in the bucket.
If 4% of Elio Motors is worth $2,500,000, then the entire Elio Motors company is only worth $62,500,000.
I agree. That's the problem is people don't understand how companies look at loans. Just because you have the ability to pay something off doesn't mean you should always do it. Why would you use all your savings to pay off a 5% loan when you could invest your savings and get a 20% return on it?....or why use up all your savings, be cash strapped and then have an issue come up where you need money?