August 15, 2013 3:10 pm
We were provided significant data related to the contract between Racer Trust, the GM property liquidation agent, and Elio Motors, Inc, Paul Elio’s company(Story “3-wheeler Won’t Sell) intended to produce the 3-wheel vehicle. The essence of this agreement as relates to current discussion is that September 4 is the 180 day marker for Elio Motors to make a $3,000,000 payment to Racer for “ME&F, Execution of the Note, Security Agreement and Bill of Sale for ME&F.” [More BAD News!]
Caddo citizens stake here is based on the Caddo Commission request to “front the money” that will allow Paul Elio to complete this portion of the acquisition of the GM plant that he appears to personally be on the hook for the $750,000 deposit. The completion of this phase of purchase of plant and equipment will allow Elio Motors to take possession of the plant and equipment and proceed with liquidation of the contents. The documents filed in the Caddo Courthouse are good reading.
Elio has submitted to the Caddo Commission documents related to his proposed manufacture (Financials) of the 3-wheeled vehicle named the “Elio”. Some who have had the opportunity to take a ride or test drive this vehicle under ideal conditions, on perfect concrete with no potholes or obstacles, indicate it rides “OK.” Our suggestion is that “OK” is only acceptable if you do not take into account these few obstacles that Elio will have to contend:
- There is NO dealer network for this vehicle.
- There is NO warranty program currently provided in any of his financials.
- The spreadsheet for anticipating recovery of costs indicates serious profitability obstacles.
- The spreadsheet as updated in June by Elio still shows production schedule date issues.
- The whole program Elio proposes looks like smoke and mirrors to even a casual observer.
Based on this data Elio’s down payment of $750,000 toward a total of $33,500,000 to purchase the buildings, equipment and land appears to be the least amount of money anyone can flush down the drain. Our observation is that Caddo citizens should not risk good money after bad, as Caddo will be on the hook for a stripped facility sold off for pennies on the dollar and nothing except a write off will exist for taxpayers. We suggest that more people download the financials referenced above and HERE and become aware of the coming vote by the Caddo Commissioners. But, Shreveporters don’t fear, Mayor Glover says he’s buying an Elio! [Glover-Elio Tweets]
Stuart Lichter, ultimately the money behind any development at the Shreveport GM Plant, (see video) states, “Paul Elio is either a lunatic or the next Henry Ford…”