Great analysis Tom. There are changes to every engine offered in every car and truck model every year. Add up the number of changes per engine by the number of engines offered in each model and the total number of models, then multiply that by Frankie's quarter billion dollars per change. No doubt just these minor changes to engines must be using up GM's entire R&D budget. According to Frankie Fruge, that is.
The really bizarre part to her excuse for Cyclone not delivering on any of the many, many past promises is that it seems designed to drive away any new investors. GM and Ford, with all their experience designing and manufacturing engines, require $250 million to make one small change on one 100-year-old engine. Cyclone is developing an entirely "new" (steam engine....) technology engine from scratch that will be better than anything GM and Ford are capable of. How much will that cost?
According to Frankie, that $65,000,000 in investor wealth they wiped out was nowhere near enough to make a working engine that could be manufactured and sold. Or even publicly demonstrated. No reasonable investor could expect Cyclone to have made a working steam engine with such a pittance, right?
So she's telling the world that Cyclone will deliver nothing unless they get many tens or even hundreds of millions in new investment. Any lesser amount will lead to failure and that new investment will be totally lost.
I.e., don't invest in Cyclone.
That must be the only honest thing she's ever said.
AI
