Send Email To Dop To Show Support For Elio Motors Loan.

[OctoberGlory]

Here's an interesting link to a Wikipedia entry about Carbon Motors and their failed attempt to get an ATVM loan and some of the reasons and speculation behind it.
http://en.wikipedia.org/wiki/Carbon_Motors_Corporation

 

[tonyspumoni]

Here's an interesting link to a Wikipedia entry about Carbon Motors and their failed attempt to get an ATVM loan and some of the reasons and speculation behind it.
http://en.wikipedia.org/wiki/Carbon_Motors_Corporation

Interesting read, OctoberGlory, and thanks for posting. I also find it interesting that the fuel efficiency bit was based on a BMW straight 6 diesel. Having owned two vehicles so equipped (2010 335d and 2011 335d) I can say that while they were indeed fuel efficient, they were only capable of at best 40 mpg highway and returned high 20s driven in urban settings. It would not therefore surprise me if the underlaying reason for Carbon's failure to progress was a combination of moderate fuel efficiency and poor financials.

DOE ATVM documents specify that full due diligence includes a market analysis, and here Elio should shine. >35,000 reservations is a pretty solid starting market.

 

[golfsteve]

I guess you haven't kept up with Elio Motors wesite. It has been updated and this information was provided in the Support Tab:

Elio Motors has been blessed with some core investors who have great resources available to them. One can just take a look at our board of investors to get a better understanding of the weight that is behind our mission. From Stu Lichter, the CEO of Investor Resources Group (the #2 commercial real estate group in the nation), to Jim Holden, the former CEO of Chrysler, Ken Way, the former CEO of Lear Seating (the company that provides 40% of all vehicle seats in the world), to David Schembri, a former Mercedes Benz executive and first President of smartUSA, we recognize that we are quite fortunate! Our management team in conjunction with our board of directors inspires a commensurate level of investment level expertise for moving forward.

Our overall strategy takes us well through year one of production and includes many pieces such that if one piece is not successful we have sufficient alternative pieces that are ready to fall into place. Most significantly, our investors are just as excited as you about our project, and therefore they are determined to make sure that we are successful- something that is wonderful to have behind us. As structured, we are extremely confident with our financial game plan, and we do recognize that this information will help you better understand who we are and how we are going to be successful where others have failed. While we are providing you with a macro level view of our finances, please know that our investors themselves have the micro level details and that our financial statement is strong.

I don't know about you, but I find this quite interesting. Z

If all of these investors have the money why do we need a $185 mil loan ? It says the overall strategy but said nothing about finance. And I have read almost everything I can find about Elio. And my question was if anyone has heard about how the fed loan was going. It is a great BOD but I know all of that. Sorry, but to me,you sounded a little condescending.

 

[Norahsbed]

If all of these investors have the money why do we need a $185 mil loan ? It says the overall strategy but said nothing about finance. And I have read almost everything I can find about Elio. And my question was if anyone has heard about how the fed loan was going. It is a great BOD but I know all of that. Sorry, but to me,you sounded a little condescending.

The way I see it is, If Elio Motors gets the Fed Loan, the investors will not have to cough up their money, EM will use it to get production started. If the loan falls through, the investors are already there. Either way, I don't see why production can't or won't start because of money. Others have commented on the length of time it takes to get the loan approved, well over a year by many comments I've read. When and if it happens I'm sure EM will let everyone know, including all of us!

I think Z is just a little frustrated with the constant questions about financing. The comments about the investors are EMs words not Zs. Lighten up a little, we don't know everything that's happening behind the scene. EM is lining up their ducks in a row. We just have to wait for them to waddle down the assembly line.

 

[JEBar]

If all of these investors have the money why do we need a $185 mil loan ? It says the overall strategy but said nothing about finance. And I have read almost everything I can find about Elio. And my question was if anyone has heard about how the fed loan was going. It is a great BOD but I know all of that. Sorry, but to me,you sounded a little condescending.

just guessing .... I suspect the decision to go after the Fed loan was purely a bean counter move based on what would be the cheapest to the company .... with a low interest government loan, EM's investors will probably make more money if they keep their funds invested elsewhere .... in short, getting the loan is plan-A so plan-B is being held in reserve

Jim

 

[Joshua Caldwell]

Because the government loan is a better deal than what investors demand in return for their money.

 

[RUCRAYZE]

If ANY company/business might have applied for ANY federal loan, in this political climate, at this time,I don't think they can realistically expect "the check is in the mail"

 

[goofyone]

To provide a better picture of the whole ATVM loan process I have written what I know about how Elio Motors became involved in the ATVM loan.

Those who have researched this know that Elio Motors first applied for an ATVM loan back in 2009 and later withdrew their application both due to issues with the loan program and because they felt they were not far enough into the development process to have a good chance of success.

It is also public knowledge that in late February 2014 Elio Motors took the P4 to Washington DC to show it to a few key representatives. The result was that they were so impressed that made a few calls and EM was asked to take the P4 over to the ARPA-E Innovation Summit conference where Paul Elio ended up spending time with Deputy Secretary of Energy Daniel Poneman. This event was completely unplanned, unscheduled, and completely on the fly however the P4 and Paul Elio apparently hit the right opportunity at the right time.

We know that Paul Elio, the team, and the P4 ended up back in DC again in early March for a private meeting. While we do not know the details however based on the timeline afterwards it is highly likely this meeting was a direct result of the ARPA-E exposure and there is a good possibility the ATVM loan was discussed. The DOE would not officially announce the ATVM programming restarting until a few weeks later in early April.

Now I get to come clean about something I have known for some time now. After the Elio Motors Town Hall meeting in mid April I wrote this post

Unfortunately I can't discuss details however what I can say is that there should be some major news about Elio Motors production financing goals sometime this summer.

You will just have to trust me on this, but I believe most of you know me well enough to know that I would not post something like this without being sure of the source. What I can say is that it is the same source that provided the engine block photos I posted yesterday.

At this Town Hall the invitees heard directly from Paul Elio that EM had been invited to apply for the ATVM loan would very likely be applying for the loan in a few months time after getting their ducks in a row.

In early June the possibility of Elio Motors applying for an ATVM loan became public knowledge when the minutes from a May 20th Caddo Parish Commission meeting became public in which Paul Elio stated that they EM had completed the application and had retained the services of an outside firm to review it so any issues could be addressed before submission.

In the August Town Hall meeting we were told that Elio Motors had attempted to submit their application in July however had discovered at that time that a full independent audit was required which they did not have. It took a few weeks for EM to complete this process and they finally submitted the application in the middle of August 2014.

 

[goofyone]

Paul Elio has publicly stated on several occasions that he really is not a fan of the ATVM loan however as CEO he is responsible for doing what is best for the company and its investors. As has been mentioned the fact is that this loan is the lowest cost option for financing and at the same time protects current investors as their share in the company would be protected by not needing additional investment which would dilute the ownership interest some, or all, current investors have in the company.

 

[JEBar]

during a conversation earlier today with Jerome Vassallo, VP of Sales at the Elio exhibit on 12-6-14 in Charlotte, NC, I learned that EM feels good about their prospects for earning the government loan .... that said, they have their financial house in order to where if the loan doesn't come through, the Elio will be built .... the only question is how quickly

Jim