Momentum V160

[Coss]

Elio Motors Momentum v160

As gas prices have ticked upwards, the demand for more compact, fuel-efficient vehicles has followed the upward trajectory. According to a recent Car Buzz headline, “People Want Small Cars, But Automakers Stopped Selling Them.” Unfortunately for consumers, finding a smaller, more efficient vehicle is difficult to find, both new and used.


*MSRP excludes destination/delivery charges, taxes, title, registration, and options/installation.

Certain statements in this email including, but not limited to, statements related to anticipated commencement of commercial production, targeted pricing and performance goals, and statements that otherwise relate to future periods are forward-looking statements. These statements involve risks and uncertainties, which are described in more detail in the Company’s periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements are made and based on information available to the Company on the date of this email. Elio Motors assumes no obligation to update the information in this email.

 

[Coss]

Page 2

When Less is More
June 20, 2018



When you think about changes throughout automotive history, you likely think of evolving body styles, regrettable fads, and gradual improvements. Changes in automotive trends can be attributed to a wide array of forces, both direct and indirect. Naturally, as gas prices have ticked upwards, the demand for more compact, fuel-efficient vehicles has followed the upward trajectory. The trend is nothing new, as we’ve seen the same trend for decades, yet the end result has largely ended the same. According to a recent Car Buzz headline, “People Want Small Cars, But Automakers Stopped Selling Them.” Unfortunately for consumers, finding a smaller, more efficient vehicle is difficult to find, both new and used.

Generally, when the price at the pump is palatable, car buyers tend to flock to larger, less fuel-efficient vehicles. During periods of reasonable gas prices, sales of trucks and SUVs soar while the demand for more sensible commuter vehicles plummets. In response to immediate consumer demand, several automakers have either limited or eliminated their more efficient offerings. According to Car Buzz “Two years ago, FCA made a similar move to kill off the Chrysler 200 and Dodge Dart in order to focus on more profitable trucks and SUVs.” These decisions have led to a limited and expensive market for both new and used fuel-efficient vehicles.



To even the most casual automotive observer, it has become painfully clear that new car prices have been on a meteoric rise. During this time, as mentioned earlier, more automakers have abandoned their offerings of sedans and compacts in favor of larger vehicles. According to Market Watch, “…as fuel costs hit a four-year high in the first quarter of 2018, some of those ‘price-sensitive consumers’ started to reconsider the switch from car to SUV or truck, Edmunds said. As a result, smaller cars are moving off dealer lots quicker.” This sudden change has had a direct impact on the used car market.

Not long after smaller vehicles became an afterthought to automakers, gas prices changed demand and had an immediate impact on the used car market. Per The Automotive News “Small used-car prices in the second quarter rose across the board, at retail and wholesale. While some analysts point to seasonal shifts as reason for the uptick, the development also follows moves by some major automakers to curb production of small cars.” The sudden rush on smaller, more efficient vehicles has had a tangible impact on buyers: Edmunds found that retail prices for 3-year-old compacts have risen by 3.9 percent to $13,464.

As much as things change, they stubbornly remain the same. At Elio Motors, we endeavor to offer an ideal commuter vehicle that features an ultra-low price and unparalleled efficiency. There will always be changes to the automotive landscape, but we aim to provide a vehicle that can withstand the ebbs and flows of the industry.

 

[Made in USA]

Sorry, but this Momentum is sort of discouraging to me. It makes me think of how much gas I would have saved, or the driving enjoyment I might have had, if only they had started making the Elio's years ago. It's almost like rubbing it in my face that I can't enjoy the benefits of an Elio. Even if they do get their financing in order, it will still take about a year more before the Elio can be enjoyed.

I do hope they make it to production though. It will sell well. And yes, I do have a all-in reservation. Waiting is getting old though.

 

[wjdom]

Sorry, but this Momentum is sort of discouraging to me. It makes me think of how much gas I would have saved, or the driving enjoyment I might have had, if only they had started making the Elio's years ago. It's almost like rubbing it in my face that I can't enjoy the benefits of an Elio. Even if they do get their financing in order, it will still take about a year more before the Elio can be enjoyed.

I do hope they make it to production though. It will sell well. And yes, I do have a all-in reservation. Waiting is getting old though.

AMEN!

 

[KD]

And while we're all waiting, maybe not so patiently, does anyone remember way back when there was some discussion about how Elio was going to gain extra revenue from selling the engine for use as generators and such things? I know that the engine always seems to be a big mystery in this whole build process, and it would seem they could have been selling at least some version of it to not only work out any kinks, but actually generate some kind of income flow.

Just a wanderin'...and yep, still want my green Elio!

 

[Johnny Acree]

I bet the engine deal hit the same catch 22 as Elio. They just don't work on low volume.

 

[Rob Croson]

EM was supposed to have assigned the rights to manufacture and sell the engine to Linamar, who was also going to manufacture it for EM. However, since the engine was never actually finished, Linamar has nothing to make or sell.Once EM gets some money to finish designing the engine, then perhaps Linamar will have something to actually make and sell. As Johnny Acree says, perhaps there isn't enough volume in engine sales alone to make it profitable to do it. They may need the volume from EM's factory demand to make manufacturing it a competitive price possible.

 

[BaldGuy]

EM was supposed to have assigned the rights to manufacture and sell the engine to Linamar, who was also going to manufacture it for EM. However, since the engine was never actually finished, Linamar has nothing to make or sell.Once EM gets some money to finish designing the engine, then perhaps Linamar will have something to actually make and sell. As Johnny Acree says, perhaps there isn't enough volume in engine sales alone to make it profitable to do it. They may need the volume from EM's factory demand to make manufacturing it a competitive price possible.

The way I remember it, a company (possible Linamar) was suppose to come to the plant and teach Elio Workers how to make the engine. Once they got the hang on it, they was suppose to ride off into the sunset.

 

[Johnny Acree]

I did not re-read it here is the announcement
https://www.eliomotors.com/elio-mot...e-elio-engine-across-the-globe-press-release/

 

[Coss]

Well the best thing anyone can do is ask them about what happened to this deal.
And so it comes up again, ask the people that are supposed to be doing this.
Sounding off in here won't answer any questions.