Roaring Forties Information, March 2006

[Bill Bayard]

I'm very sorry to hear of your plight, guys! Keep your collective chin up. It may take some time, but I think you'll come out of this in one piece. CAV came through a "gray period". Let's hope that RF can do the same, for all of your sakes.

You can speculate on the cause of RFs financial woes all day long, but regarding AF, it is probable that Auto Futura smelled a bad fish during those 8 days, and simply backed out. Their announcement of the "non-alliance" with RF is likely intended to avoid any legal financial responsibilty to RF's creditors in SA. A prudent business move, nothing more, nothing less. I don't believe that the statement was intended to steal any thunder from anyone, or malign anyone.

The haze that has been hovering over RF deliveries of late, has had ME wondering what in the hell was going on, and I really wasn't paying close attention, by any means. I'm sure that AF scrutinized things a LOT more closely.

I hope that Robert is able to satisfy all of you who were left dangling in the wind. I also hope that your zeal for GT40s hasn't been crushed by this unfortunate situation.

Again, my sincere condolences to you all. Best of luck!


Bill

 

[Paolo-LoveGT40 Modelworks]

But is not possible to have the partially build cars maybe Robert have in his factory?.
I think he surely will have some already build chassis, maybe can be interesting to really know what is the assembly step of every chassis(I always keep in mind the first KVA were just 5 fiberglass parts and a "gate" to assembly it on..).
His one should be just better under every point of view, and I think every customer will prefer to have at least a partially build car than loose money at all.
Probably also for him this will be a possible solution..to avoid regive back the amount in money.
,,,maybe the rollers are quite ready and just need some minors finishings...dunno.

Is just an idea..maybe I am wrong..
paolo

 

[Andy Sheldon]

Everyone

Just wanted to say that some of those affected by this situation seem to have lost faith in GT40 manufacturers and I can understand your reasoning. It leaves a bad taste.

I hope I can reassure you by saying that in the 22 years that Tornado Sports Cars have been in the business not a single customer has lost a deposit.

Keep the faith.

Andy

 

[Jim Holden]

Regardless of what we may individually feel about the relative merits of a given kit car manufacturer, I know we can all agree that the failure of ony one of them and the potntial loss of deposits negatively impacts the public perception of the entire industry.

I would hope that the company management will be able to reorganize and ultimately honor their contracts with their customers.

Jim

 

[John B]

Very true!!

RCR/SPF and all the others have to due double duty to ensure their money is safe. These companies profit margin is not as large as people think, operating cost is heavily effected buy deposits. Most small companies don't have the capitol to flip the cost until the customer decides to pick up there car.

/ubbthreads/images/graemlins/soapbox.gifOliver

 

[Mike Dozier]

This isn't that different from the construction trade.
Lot's of small contractors face the same issues.
The answer is to set up Escrow accounts whereby the
buyer is assured money is paid only when work is done,
and seller gets paid as he progresses...and not all upon completion.

MikeD

 

[Keith]

Which basically means that whatever business you're in, it should be properly capitalised and not rely on customers deposits for operating cash flow. Not saying that's what's happened here but it's a never ending problem in small business. In construction, it's quite possible to pay/achieve interims with a surveyors report of progress or "materials on site", but in small car construction the interim payment demand may only be accompanied by a photograph of a "car in progress", but is it yours? I don't think there's any substitute for paying only for what you can see, touch and keep an eye on, on a regular basis whether you are dealing at home or overseas.

I'm for deposits in escrow every time. /ubbthreads/images/graemlins/twocents.gif