Leasing during bankruptcy
- Thread starter Sact Pure
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Unrelated.
Steveinarizona
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In general, a chapter eleven company can walk away from any continuing contract it deems harmful to its recovery. I don't see how ending an income stream would cause that. Plus, as noted above, there is no indication that Lucid may have to enter bankruptcy.
xponents
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It wouldnt, because Lucid wouldnt go bankrupt with its current cash flow as well as the saudis. To me, it seems like you are just joining in with the redditors and stock "experts" who say such nonsense.
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Usually, they would find some company to take over the liabilities right? Like in the case of the bank failures last year, with FRB, Chase took over all the loans. Would've been great if my mortgage just became free 
Steveinarizona
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Again, this is a meaningless discussion as there is absolutely no indication that Lucid is going bankrupt.Usually, they would find some company to take over the liabilities right? Like in the case of the bank failures last year, with FRB, Chase took over all the loans. Would've been great if my mortgage just became free
Having said that, the Lessor owns the car so if it cancelled the lease, the car would go back to Lucid (the debtor in possession). So you wouldn't be getting a free car, you would be losing your car. But no debtor would walk away from an income stream and no bankruptcy court judge would permit it.
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Forget the part about Lucid going bankrupt. I think the question is more along the lines of what happens to a car lease in general. I get what you're saying, i'm pretty sure continuing the lease to maturity is the best income stream for the debtor vs taking the cars back so i think that's clear.
BUT what if service centers go offline and you can't get your car taken care of if something goes wrong. Then what happens?
xponents
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They are required to stock a supply of parts for a period of time, which I think is about 10 years? This is how fisker karmas still run(excluding the fact that somebody else took them over).
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But who would manufacture Lucid parts for 10 years? Remember how it costs Lucid $300k to build each Air or something?
xponents
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That was including research + R&D, which I found unfair. They are already past those research costs, after all.
Overcharged
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The lease would be assigned to a new creditor.
If Lucid did really go South, as I have been saying Toyota would be the most likely one to acquire them, and fold Lucid into Lexus and then sprinkle Lucid sauce into the Toyota brand.
If Lucid did really go South, as I have been saying Toyota would be the most likely one to acquire them, and fold Lucid into Lexus and then sprinkle Lucid sauce into the Toyota brand.
Steveinarizona
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That is what happened with Saab and GM:
Orio Will Continue To Provide Spare Parts For Saab Cars
It is now almost ten years since the distinctive Swedish car manufacturer Saab went bankrupt. Unfortunately, many fans do not have new Saab cars, but this brand of ours still has many sworn followers around the world, wherever Saab showrooms used to be, especially at home, in Sweden. The...
www.saabplanet.com
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Dude, i think you're spot on. I really think the Lucid Air is like the modern EV take on the OG Lexus LS. Other than the LS's primary selling point being it's affordability. The ethos is quality, utility, luxury, etc... is spot on with the Lexus LS.
I don't ACTUALLY think Toyota would buy Lucid. They don't invest in new tech, or want to spend that much money. They'd rather keep selling slow old tech hybrid cars that are reliable, cuz that's their jam...but they really should!
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I think all this thread is doing is spreading FUD. How about ‘we’ll cross that bridge IF and when we get to it’.
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I don't think there's any FUD, no one's posting any argument that Lucid WILL go bankrupt. No articles, no facts, no opinions, just a "what if" thread.
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The ‘what if’ part is enough to satisfy the fear and uncertainty part. There is no indication Lucid will go bankrupt any time soon, so for me, especially without any facts, the discussion is moot.
Overcharged
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I certainly did not intend to go down the FUD path.
I was not afraid of buying a Lucid based on what I saw in the car coupled with the support they had (long term kind of support from KSA).
The mention of Toyota stems my belief that the folks at Lucid built a car with enough innovation, etc. in it that if the company were to fail (mostly because the luxury sedan market is too small) another company would be buying them. Toyota make remarkable hybrids and unremarkable eCars and their quality system is incredible (ex. Prius used as a taxi going over 600,000 miles in a mixed climate like Chicago). Lucid could really flourish there.
I was not afraid of buying a Lucid based on what I saw in the car coupled with the support they had (long term kind of support from KSA).
The mention of Toyota stems my belief that the folks at Lucid built a car with enough innovation, etc. in it that if the company were to fail (mostly because the luxury sedan market is too small) another company would be buying them. Toyota make remarkable hybrids and unremarkable eCars and their quality system is incredible (ex. Prius used as a taxi going over 600,000 miles in a mixed climate like Chicago). Lucid could really flourish there.
Steveinarizona
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I wish but I doubt it. Lexus has done great selling old technology vehicles with terrific reliability and customer service. But it has not done very well with performance cars. It tends to price them too high and sell very few of them. I would fear that Toyota would do the same thing with Lucid. It is a great car company but not one I would look to for performance vehicles.
But, as I have said, and I agree with Lucken, this post is meaningless. Perhaps it will be useful for people considering a Fisker.
