Doubling down on the double down. Bold strategy. Let's see if it pays off. Sent from my toilet using FerrariChat.com mobile app
So John Yi invested $600k for 15% ownership. That puts EAG valuation at $4mm at the time of investment.
So Art is claiming that his partners (who own 25% combined) either personally went into EAG in the middle of the night or their "agents" did where they removed the CNC machine, computers with IP, spare parts, and all the tools (some of which may belong to employees)? I expect if this is the case, the police will be involved as well as lawyers. Either the contract Art signed for the investment money was never reviewed by his attorneys to protect EAG or EAG has actually been robbed. I hope Art had CCTV video of the act and has insurance if this was an actual robbery. I also expect that it could be something like the partners said they were tired of his drama and were going to start another company and take the items they "funded" with their investment. Art implied they also poached employees. This is something the contract with his partners should have protected EAG and Art from. Art is also wrong, Steve Jobs did not create anything at Apple before his outing in 1985. The Apple-1 was Wozniak, The Apple II was Wozniak, The Apple III was Wendell Sander (Jobs actually messed it up by replacing a connector to save money), the Lisa was designed by "committee" and the Macintosh was first Jef Raskin then Burrell Smith/Andy Hertzfeld. What Steve Jobs did, was not suffer fools, Luddites, or people skating their way through their jobs. He was a futurist who had the vision that computers were for everyone not just technical folks when most computers required complex programming to perform simple tasks. Steve was vindictive, obnoxious, and a complete sociopath. The things he did to his "friends" with no remorse would curl your blood. No one should want to be Steve Jobs... I am not saying this stuff because I read a book, but know many people personally from before his time at Apple, at the beginning of both Apple and NeXT, and when he returned to Apple. We owe a lot of our modern society to Steve, but only because we need people like him to push ideas past the general Luddite "we fear change" attitude most people have, especially technical people who actually design this stuff for us to use. OK, enough of my Steve Jobs rant... the curse of being a technology historian is that I have to keep correcting people's reality distortion field of history.
I don't think I heard Art imply he wants "to be Steve Jobs." The words I heard were "now I know how Steve Jobs felt," and the analogy of him, Sculley and what happened back then seems to be the point. Some of those txts/messages also seem to show his claim there is some severe f*ckery going on, behind his back, is real and my heart goes out to him and his family. Some of the replies to those videos from people who know some of these characters also seems to corroborate he's dealing with low integrity characters. And, the overwhelming support of other auto people and businesses (DDE, Ferrariparts, other shops) is a real breath of fresh air when most of the time the internet brings out the worst in people. God knows there's plenty of that even here on Fchat.
No UCC's on file for EAG, European Auto Group, John Yi, or anyone with the last name "Bartosik," in Texas, so if they removed equipment, it wasn't securing a loan, at least not one where they registered the security in Texas. If they got a minority interest in the company, we don't know how that's reflected in stock ownership. they could have preferred stock which is paid out first, or any number of other arrangements, but they did not register any security interest in FF&E with the state. So just yanking it out of the building should prove problematic for them. And if Art has videos of the stuff being removed (and who doesn't have camera in their shop or home these days) that should pretty much seal the deal. Doesn't mean it won't take quite a while to sort out. D
On the other hand, if the investors put money into the business, purchased the equipment and then leased it back to the company, that could make it messier, but should still have been done with UCCs. What a cluster ****. For the company and any customers past or present. D
I really would love a converted v10 or v12 car someday. As a potential customer I don’t know why anyone would send their car there, putting their money at risk, and step into the middle of this mess. I looked at having them convert a f430, and had the opportunity to sit in their 599 to check it out at car week but between the challenges getting connected and the drama, never could get across the line. The whole thing has been unhinged for a while now and will seemingly continue for the foreseeable future, which is really unfortunate.
I hope this answers the original question from start of thread. We will remain consistent. In 2023, under new management and staff, EAG delivered the entire backlog accumulated in Austin from 2021-2022 after receiving favorable reporting in an industry publication (separate from San Antonio operations during 2020 and before at now defunct entity) The newly formed team executed flawlessly while facing pressure of time and making good on old promises. Many customer disputes were resolved - before becoming lawsuits - and all client cars were either completed or returned unfinished. Significant capital was consumed to complete old jobs where customer deposits were misappropriated and depleted. Facilities were also renovated to streamline assembly line and reduce turnaround times Throughout the year, certain claims began to accumulate regarding past contracts not honored. While heading into the new year, large debts to previously undisclosed customers and vendors came to light. Unfortunately, the solvency of EAG has been called into question at this point. The founders have now misled three different sets of investors. Lack of financial transparency and inconsistent reporting has also recently drawn government scrutiny resulting in financial levies. The core team of mechanics, designers as well as administrators who delivered on all unfinished cars in 2023 has now departed EAG. They still believe in the current product which was actually heavily reengineered by them. They have new designs and are preparing for the next act. Please be patient during this time of transition. Where sensible they intend on covering warranty on their work and installations. There are legal actions being taken to secure company assets and that is all. It is not personal matter. We will not engage in an instagram parade of slander. Thank you all, we will answer questions in DM.
Does this imply cars that were fully completed by EAG should command some premium as you are bypassing drama and risks associated with said drama??
Doubtful. Instead,until these issues ArtEAG and TheNewEAG alluded to are resolved, you're buying a car that may, or may not, have a supply of replacement parts and the technology to easily repair or replace them. I don't know what the component parts are, but since there's mention of a CNC in house, certainly sounds like at least some are being fabricated. The drama may extend now to anyone with their kit installed, unless they bought a second kit for spare parts. As to posted activity here, I'm wondering aloud if "TheNewEAG" AND "ArtEAG" are the same entity, can either party provide some clarity? D
People had their cars converted using custom parts. If EAG isn't revived how will that impact the value of the convert cars? I did see the 1st Instagram video and Art started the video by crying. I can't imagine the CEO of Ferrari, Ford, GM starting a video by crying. Talented mechanic doesn't translate to a talented business man who can scale the business. Not saying I have any ability close to what Art/EAG have; just a keyboard warrior making a comment.
The likelihood of your entire kit failing is pretty low. If a specific component of your kit failed (actuator/shift tower parts/cables/master cylinder/etc) you could always have it replaced with something from a competitor. Yes, if the part was proprietary, you may need to replace more than the single failed part, but it’s not like you can’t buy every part to convert a car for sub-$15k, including the tuning. So yes, if EAG bows out an EAG converted car wouldn’t be worth more, but it also won’t be an unserviceable paperweight either.
Art asked for access to TheNewEAG which has an email of sales @ eagusa.com, but he says he doesn't have access to that domain. So I just told Art to create a new account since I'm not going to be judge and try to sort out the business. Maybe Art will or has access to that account again (since yesterday). Either way best for FerrariChat to stay out of it and just let all parties have a voice.
In my personal opinion, I don’t view EAG cars as commanding a premium. In my research I found other shops that had done v8 conversions that would bypass the drama. In my search I came upon and ended up buying a factory gated car.
