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Technology Stocks : Energy Conversion Devices -- Ignore unavailable to you. Want to Upgrade?

To: fred whitridge who wrote (3541)	4/11/1999 12:46:00 AM
From: jacq	Respond to of 8393

I would think first of all that GM-Ovonics does not have a problem with the SEC yet. The factory has not yet achieved commercial production in the meaning of accounting. They are doing ramp up engineering testing etc. Any revenues accrued are being placed against start up costs. As far as the costs to produce these batteries. There are indeed many things wrong with the process. The chief most of which seems to be a lack of urgency to get the job done. This will soon be a major market and they are dawdling. Every battery that they produce drops their costs per battery down because they are expensing everything but the kitchen sink on each battery. I would imagine that they even expensed the shareholders tour on those two poor batteries. Engineering and start up expenses are being written off as they go along. I remember a statement that battery costs would drop by 30% by September that is about 1% per week. Don't forget that they are paying someone to transport belt from Troy Michigan to Dayton. That's an eight hour round trip for someone. Soon that machine will be in Kettering and another $120 or so will come out of the cost structure of each battery. I heard different amounts regarding costs of producing a battery pack. They varied from $2,000 to $1,500.