The builders are having the same credit problems as everyone else, and it hurts and slows production.
I only inferred that this can look like a pyramid if you have never been involved with small lot production. I have. You take deposits from people and use it as working capital to run your business as best you can. In Steve's case, that means buying and refurbing Subaru donors, building and prepping the body, building and prepping the frame, a whole host of things. That's what you use your working capital for.
Perhaps you saw the pictures that Lane took of the SAS production; Several Subarus, cabriolet and coupe bodies all waiting outside, a few frames (some with mated engines) waiting inside and a few more cars in various stages of build - all that takes working capital to make happen.
SAS' real problem stems from having a 2-man shop, not being able to find and retain competent mechanical/technical help in his geographic market to grow his work force, and then being saddled with a whole bunch of early orders when he was still developing his basic car. That development is now done, and he has his build time down to 45 days or less per car after a car's order comes up for build, but he STILL has a huge backlog because people saw his cars, heard the rave reviews of high quality and great after-delivery service and begged him to build their car, too. He tried to discourage them with long lead times, but many persisted (and don't forget - he builds custom hot rods, too) so his order backlog/lead times prior to start of build are still very long. Once he gets going, the build happens pretty quickly, even for a 2-man shop.
He also now has a good support chain of high quality sub-contractors on whom he has off-loaded much of the sub-assembly build so he has slowly turned into a small volume, final assembly shop, rather than a prototype shop, just as several of us have recommended. All good things.
People who see his cars often want one and many are willing to wait for his product. At the SAS Price/quality point, I believe his cars are worth the wait. So do many others.
Hoss and Lane: (and any others wishing to comment...)
This pretty much cover it?
gn