There has been chatter since Friday morning that EAG is gone anyone know for sure
I saw a post from them on instagram yesterday. Everyone knows that’s the true measure of a company’s health.
Hmm. Wonder if they overextended themselves when these kits were super hot and going for really high prices thinking that wave would continue?
So no more warranty for people that got there cars converted recently? ...I'd be pissed/worried for those people.
Forget the warranty the parts are not interchangeable with anything so repairs are one off custom made parts big$$$$$$
I wonder how many customers have their cars there and have been waiting a while. Sent from my toilet using FerrariChat.com mobile app
Wait... I don't really do social media other than LinkedIn, so what is going on here with EAG? Did they announce something or is this just because they are asking for a 1 Million dollar investment?
It says they are no longer looking for funding. Although, looking at their monthly income of $50-100K, which is 600K-$1.2M annual income. That is really low productivity for a company with 7 employees. With more competition now entering the manual conversion market, it is not really a good business to be in. Image Unavailable, Please Login
I thought EAG had a rather risky business plan with all their investment in plant and tooling for a small market with a low entry level for competition. I guess like aviation, if you want to make a small fortune in exotic automobiles, start with a large fortune.
Saw this video posted just now on their instagram https://www.instagram.com/reel/C3gTg4_LXE4/?igsh=c2tpcWZ5ZGN5dHc3
I’ll never be able to fathom how a business that can generate good revenue would be offered up to partners for investment that you can make yourself in your own business over time. Unless you’re living horribly above your means, or are incapable of running a business, why would you even need to offer up that stake? Who knows what the truth is, but when you no longer have a monopoly and are attempting to still charge a premium you better offer good customer service and it seems like there was always an excuse instead of results. Perhaps if their track record was free of so much drama it wouldn’t have given the competition a foothold. I wish them luck. Sometimes being the best at what you can control yourself as the founder is better than attempting to grow into apple. For every apple and Steve Jobs there are countless failed attempts due to excuses. Hopefully they can turn a page, but it seems like the writing has been on the wall for a while. I feel for anyone with a car stuck there during this.
The only partner I've had as a self-employed person for the last nearly 40 years has been a family member. First, my brother, then my wife. That's it. If I needed investment, I saved it up. If I need help and can't afford to hire employees, I've hired them as contractors. If I couldn't afford to hire them as contractors, I either did it myself or skipped that business. You can only trust yourself and, hopefully, your own family. Any other partnership deals have a very high chance of being a disaster. No financial partner is going to have your zeal, drive, ambition, vision. They only see profit potential and have a short term outlook. I feel for Art. I really do. He's got that look of a creator and he got rolled by some smooth operators. Why did they take all the equipment and parts? I'm sure it wasn't that much of a surprise.
Man that’s a tough deal. I hope he’s got everything papered up w agreements. Then let the lawyers figure it out, godspeed
I recently visited EAG, and while I can't comment on the specifics of recent developments, I wanted to share some observations from my visit. During my visit, they appeared to be investing in expanding their capabilities. This included acquiring new equipment such as CNC machines and 3D printers, suggesting plans beyond their current product offerings. This potential expansion could have led to new products for enthusiasts, similar to what other companies like Hills Engineering provide. It's important to remember that situations like this often involve real people whose lives are affected beyond the business itself. Let's encourage respectful dialogue and avoid speculation without complete information. I'm sure more will come out about all of this in forthcoming days/weeks/months.
Sounds like there’s a lot more to the story. Post #19: https://www.ferrarichat.com/forum/threads/2007-ferrari-599-eag-6-speed-conversion.680946/#post-149526198
Over 400 V-8 kits sold at $35k a pop and 50 V12 kits at $50k a pop at ~30-50% margins. $16.5MM in revenue over the last 3-4 years, but they still have customers waiting on refunds. Crazy mismanagement. I feel for folks who bought into their ridiculous warranty claims and who have issues. As others have mentioned, they stopped using factory facsimiles and created their own custom parts, which means that anyone who has issues is totally SOL as a main dealer can't help. Much better off going with the copies using re-cast factory parts for 40% of the price.
