Financing Elio Motors Development And Production

[JEBar]

Thanks anyway. I did some research and came up with a document from the Congressional Research Service which includes a pie chart on the ATVM program as well as a full report on the program to date. ( http://fas.org/sgp/crs/misc/R42064.pdf )
After reading the report, I believe I was correct in sending the included to my Senators (Cruz and Cornyn) and my Representative (Lamar Smith, Texas 21st Congressional).
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Dear Sir,

I have been following the efforts of a new manufacturing company named Elio Motors to get started in the United States for the past several years . This company and its founder have the simple goal of producing a good quality, high mileage (84 hwy/49 city) vehicle at a low price ($6800) that will provide basic transportation. This vehicle's design is planned to leverage the fact that most vehicles used for commuting (about 75%) have only one occupant. The vehicle will use more than 90% domestic parts

Elio Motors has submitted a request through the Department of Energie's ATVM program for a low interest loan to complete testing and go into production at a former General Motors plant. The estimated economic benefit from this project is 1500 production jobs at the assembly plant, 1500 additional jobs at various parts suppliers, and additional jobs in the surrounding communities. There are about 40,000 pre-orders for this vehicle.

I am taking this opportunity to request that you do whatever you can to encourage the Department of Energy to expedite this loan.

Additional information on this company and project can be found on the web at Eliomotors.com.

Thank you for your consideration.
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This tells them:
What my issue is.
What the potential benefits are.
What I want them to do.
Where they can get more information.

While by no means perfect or all inclusive, I believe this tell them there is a jobs related issue that they should look at.

I've emailed both of NC's Senators and our Representative .... if/when I get a response, I'll post it

 

[goofyone]

Before I write my US Reps I going to verify if they support the NADA's anti-direct to consumers sales legislation that's being sponsored, drafted, and passed in a few States. It could impact how they feel about supporting EM's DOE ATVM Application. They may feel it to be in competition with NADA and it's member Dealerships. Also, how those politicians are tied to BIG oil. Also, whether or not they even supported the legislation for DOE's Low Interest Loan Program in the beginning.

I'm obviously a little paranoid about some politicians and who is more likely to support new startups and vehicles like the Elio. It's not BIG Auto and Big Oil Connected politicians.

There is a compromise which has been reached in a number of states which makes nobody completely happy however it does address some of the issues. The compromise has been to allow manufacturers to sell direct to consumers only if the manufacturers do not have franchised dealerships. This way the existing franchised dealerships are protected and get to keep their system while also allowing new manufacturers with new ideas, such as Tesla and Elio, to join in. Some lawmakers who straddle the line may appreciate mentioning this as well.

 

[Kuda]

Snipped: I'm obviously a little paranoid about some politicians and who is more likely to support new startups and vehicles like the Elio. It's not BIG Auto and Big Oil Connected politicians.

Paranoia about the Auto companies wanting to derail Elio
is misplaced. Elio's success is in their interest as long as
they want to sell average mileage Trucks, SUV's, etc. hence
the "Cafe Credits" concept, which is still in play, as log as Elio
survives &/or congress decides against Autocycles, which to
my knowledge hasn't happened yet............

 

[goofyone]

Thanks anyway. I did some research and came up with a document from the Congressional Research Service which includes a pie chart on the ATVM program as well as a full report on the program to date. ( http://fas.org/sgp/crs/misc/R42064.pdf )

Thanks, I had not seen this report yet.

I especially found this bit, at the top of page 12, interesting as it is indirect evidence that answers two questions I have seen from Elio skeptics. This government report indirectly confirms that Elio Motors has actually applied for an ATVM loan, as I have seen claims that EM is lying about that because they have been source for all ATVM news, and it lends support to EM's claim that they were invited to apply for the loan as that has also been questioned by skeptics.

Since our March 2013 report, DOE has received one application seeking approximately $200 million.... DOE recently stated that it has begun new outreach efforts to potential applicants that will increase awareness and interest in the program and lead to additional applications in 2014.

Page 12 - http://fas.org/sgp/crs/misc/R42064.pdf

 

[BlioKart]

I was curious about who was behind the NADA's legislation to stop direct to consumer vehicle sales and what seems to be a direct shot at free enterprise. What's even more interesting is the NADA funding sources that make the power to influence possible.

I don't know what's best for citizens in this battle. NADA has a huge brick and mortor investment in sales and servicing centers. They also provide jobs in those communities that impact those local economies.

Companies like Tesla Motors rent a small mall showroom space for customers to place an on-line order. There is no customer local dealer parts and servicing options. It will be very inconvenient for warranty, parts, and service for Elio Owner's after the sale in those markets that have no access to PepBoys or Elio Stores for that matter.
It's apprently complicated. I can't take a side on the issue without facts to support it, but I understand the issue of competition and a level playing field.

Tesla does have service centers

Elio stated they will work on a program for areas without pep boys for warranty & service. My guess will be either another auto chain or a factory certified program for independent shops.

 

[LillyMayPatterson #1685 & #5648]

The problem is that the Manufacturer can't own the stores in Ohio.

Tesla has stores in OHIO, Ty. The one I visited near Cleveland has a full service center.

 

[Rickb]

Tesla does have service centers

Elio stated they will work on a program for areas without pep boys for warranty & service. My guess will be either another auto chain or a factory certified program for independent shops.

Yes I know and I'm fine with it, but it's not like buying a car at a dealership, that has parts and award winning factory service all under one roof with no middleman invovled. I have had a good experience overall at my brand dealerships as they always meet or exceed my high expectations. Hassle free service is more important than a hassle free purchase process for me. Buying has always been the easy part of vehicle ownership.

I'm going with a local trusted mechanic to service my anticipated Elio even if there was a PepBoys conveniently located nearby.

 

[RUCRAYZE]

Yes I know and I'm fine with it, but it's not like buying a car at a dealership, that has parts and award winning factory service all under one roof with no middleman invovled. I have had a good experience overall at my brand dealerships as they always meet or exceed my high expectations. Hassle free service is more important than a hassle free purchase process for me. Buying has always been the easy part of vehicle ownership.

I'm going with a local trusted mechanic to service my anticipated Elio even if there was a PepBoys conveniently located nearby.

I think cost becomes a decision maker when it comes to dealer service. I accept their overhead costs, but there are many private companies that can easily match mechanics skills at much less the price for labor, and the worst- jacking the price for the exact same parts.

 

[goofyone]

Traditional franchise dealerships essentially sell cars so they can finance and service them. Due to very high overhead costs dealerships generally do not actually make any profit selling new cars and generally have a gross profit margin of under 10% from selling used cars. The most profitable area for dealerships, by far, are the service and parts department where dealers know people will come to them due to their franchise and as a result can get away with charging a pretty big premium over the independent shops. The other large source of profit for dealerships is the finance and insurance department as dealers always make a tidy profit when they sell you financing along with all the extras such as extended warranties and GAP insurance.

EM and Tesla keep their retail sales channel costs very low by using small leased retail sales locations with no on-site inventory or service facilities. Tesla has service centers however these are small facilities separate, but usually, near by the retail sales centers. Because of these small sales centers with little up-front setup costs and low overhead costs the number of vehicles needed to be sold each month to break even on the sales centers is minimal.

 

[RUCRAYZE]

Traditional franchise dealerships essentially sell cars so they can finance and service them. Due to very high overhead costs dealerships generally do not actually make any profit selling new cars and generally have a gross profit margin of under 10% from selling used cars. The most profitable area for dealerships, by far, are the service and parts department where dealers know people will come to them due to their franchise and as a result can get area with charging a pretty big premium over the independent shops. The other large source of profit for dealerships is the finance and insurance department as dealers always make a tidy profit when they sell you financing along with all the extras such as extended warranties and GAP insurance.

Has been (not recently) mentioned that EM will do financing. Anything about EM insurance?