Alta Motors v2.0 restart attempt

[bluefxstc]

Does anyone know why Alta went out of business? All indications seem that they should have succeeded.

Ran out of money, the real question is why, and that we don't know the answer too.

 

[No.73]

Ran out of money, the real question is why, and that we don't know the answer too.

It's like anything else that runs out of money - they ran out of time before securing additional financing for a business that wasn't yet profitable.

The why behind all of that is 1,000 decisions over a decade. It wasn't any one thing. They were survivors, grinders. It wasn't for lack of effort or grit. Folks went down swinging.

Maybe one day that story will be told - no one will care if it doesn't ascend to greatness from this low point, frankly.

 

[Philip]

I would like to update everyone who is following this. We are making progress. The goal has not been reached yet, but people keep stepping forward, and we are optimistic. We will need all the help we can get.

GO ALTA !!!

 

[datadog]

Happily.

I'll give you a ring when the company is in a position to hire employees and has prioritized the gaps to fill. Right now, there is no need to stir up hope or carnage unnecessarily. Philip has been documenting non-financial support and interest as well, but it's simply not relevant until we're going. Share your details with him and how you'd like to help in the future. While I lament your experience, I won't compound it by promising you anything now.

To be clear, I was never an investor in the old company. I’m a founder of a NewCo that aspires to buy the OldCo assets. This is not a reboot of Faster Faster (see eulogy above). This opportunity is a clean sheet new company, starting with the limited acquirable momentum that remains.

There is risk. We may not even have sufficient capital in time to acquire the assets necessary to support Redshift. We may need to leave Alta as a brand behind, if the tone continues to spiral down. We'll repeat our failures if we take the liabilities and scar tissue too. Please, let’s not confuse old with new - I had nothing to do with it.

To repeat, priority one is to get going and leave the drama behind; otherwise, what’s left will likely rot.

You can help us or hurt us - the choice is yours.

Very good. As I have experience with the product, I would hope that we could work together to smooth the transition.

 

[Redwolf]

 

[No.73]

The strangest things prove inspirational sometimes...

If you're sitting on the sidelines watching this all go down, not in a position to invest for one reason or another, but interested in doing your part - how about buying a bike?

I don't mean run all over the country trying to find one with a dealer willing to do a discount. I mean pay full retail price for a bike this month. Take delivery between April and June (depending on what's already built, and other nuances). If we can't deliver your bike in 3 months, you get your money back. If we can, it likely comes with some sort of limited-edition resurrection livery for your trouble.

Yes, you can probably get a cheaper bike somewhere else today, but if Alta's dead it's probably not worth that price.

We may be able to scrounge up ~$2 million liquidity this way.

Thoughts?

 

[Philip]

What if someone goes to their local dealer and buys a bike that is sitting on their showroom floor? Would this money go towards Alta 2.0, or to old investors?

 

[S300]

This sounds like a great idea! So basicly, we would need to find a dealer to order a new production bike?
Would parts orders help too?

 

[No.73]

What if someone goes to their local dealer and buys a bike that is sitting on their showroom floor? Would this money go towards Alta 2.0, or to old investors?

It would go to old creditors or pay the fees of the folks liquidating the assets. A fraction of it might be acquirable by the NewCo, but only a diluted fragment.

 

[No.73]

This sounds like a great idea! So basicly, we would need to find a dealer to order a new production bike?

Kinda, but not exactly.

You'd be placing a 100% paid in full deposit with the NewCo for delivery of a Redshift that we don't yet own, or haven't yet assembled.

Once the assets are acquired, including remaining inventory of bikes and parts, we'd match you with a bike or refund your deposit.

As per the answer to Philip's question, buying a bike through a dealer is actually quite destructive to this potential NewCo.

 

[No.73]

Would parts orders help too?

Parts orders through a dealer would similarly not help... If we set it up to take them, could help if made directly through NewCo. Probably better to assume if we can pull this thing off that parts would be available later. Then again, cash is cash. So anything helps.

 

[Philip]

It would go to old creditors and/or pay the fees of the folks liquidating the assets.

Ok. We do not want to buy the dealer floor bikes then. DO NOT DO IT! This would leave the NewCo without an inventory of new bikes to sell after the company restarts.

How would one go about ordering a bike with "limited-edition resurrection livery" from NewCo? I suspect my local dealer wouldn't know how to do this properly, and would instead try to sell me a bike that he already has.

 

[No.73]

Ok. We do not want to buy the dealer floor bikes then. DO NOT DO IT! This would leave the NewCo without an inventory of new bikes to sell after the company restarts.

How would one go about ordering a bike with "limited-edition resurrection livery" from NewCo? I suspect my local dealer wouldn't know how to do this properly, and would instead try to sell me a bike that he already has.

If you're willing, Philip - I say folks place their wishlist with you and we keep on updating our spreadsheet.

If we get to the end of the rainbow before time runs out, we get the cash in the door, buy the assets and get to work.

If we don't, the bikes on dealer floors will likely get cheaper (as will the second hand value of what y'all own).

 

[No.73]

How would one go about ordering a bike with "limited-edition resurrection livery" from NewCo?

For the record, there's a good chance this livery ends up being pretty low budget - like a merit badge only we'd understand.

 

[snydes]

How would warranties be viewed on existing bikes on dealer floors vs. bikes ordered through this NewCo?

 

[Redwolf]

For the record, there's a good chance this livery ends up being pretty low budget - like a merit badge only we'd understand.

If something like a service laptop with a commemorative sticker on the lid were on offer, to support the machine I already own, and assist funding NewCo, there may be something.

 

[No.73]

How would warranties be viewed on existing bikes on dealer floors vs. bikes ordered through this NewCo?

Any acquirer of these assets would likely leave behind the liabilities, including the warranty obligations. If a new entity sells you the bike, then the warranty with which it is sold covers that vehicle. It may or may not be the same.

If you bought an OldCo bike that now has an issue (including ones now on dealer floors), you're a creditor and can make a claim against the asset base being liquidated now. Resolving a problem at all (regardless if under warranty or not) will be easier if the Redshift platform is still being supported. I know some folks have gotten in position to support these vehicles regardless, so I'm sure there's a way.

Unfortunately, I am not deep enough in the details yet to make any additional commitments now.

 

[No.73]

If something like a service laptop with a commemorative sticker on the lid were on offer, to support the machine I already own, and assist funding NewCo, there may be something.

I'm not deep enough to confirm 100%, but I fear that idea is pandora's box from a liability perspective. Can't commit to it now. Sorry.

Out of curiosity... what would that capability be worth to you? I'm sure you can understand that being able to update firmware is one thing, but edit it quite another. Which capabilities would be most valuable?

Where we'd all ultimately want to be is something like "GS911" capabilities for BMWs from your smart phone... doesn't exist yet, though.

 

[S300]

If the new bikes are the same that should help the availability of parts too. The bike only came with a 1 year warranty so most will have expired in the next few months anyways.

 

[Philip]

Later today I will be posting a new thread about how current owners, and aspiring new owners, can help Alta Motors rise from the ashes by pre-ordering Alta Redshift "Phoenix Edition" bikes.

In the meantime, DO NOT BUY NEW BIKES FROM DEALER FLOORS. You would be paying off old creditors and Armanino, and hurting the survival chances of Alta Motors 2.0.