100 Preproduction Elio's To Be Built In December!!

[Ekh]

That is very interesting. It suggests Elio Motors/Comau will need to start setting up the plant in July, if Comau's three month lead timeline is accurate.

As I understand it, Roush will actually be doing the setting up. Comau's role is a bit unclear, but Roush is driving the late-stage chassis- body development and plant set-up. IAV remains involved as well, probably with engine production set-up.

 

[Ekh]

I think the real question is whether EM will start hiring locals, if they do that, well it's really gonna happen.

Bringing in all the Roush outsiders is gonna piss off a whole lot of locals. No question about that ... even though it's a "we really are gonna do it" gesture that may stave off the penalties RACER trust is going to levy if they've not hiring and building by Jan 1

 

[Ekh]

ATVM loan. It happens when they get the ATVM loan. For some reason, the DOE is just... waiting. And waiting. And waiting. WTF??

Waiting for fuel mileage test results. How many times do we have to say this?

 

[Rickb]

You're right. Guess I should have picked another user name.

It's a good user name! My attempt at humor.

 

[Rickb]

I should have explained. "Time" is the issue. It seems that whatever date they say something will be completed it never happens. According to EM the first production cars should have been produced a couple of years ago. There is always one more delay. Enough already.

The reality may be that EM marketing hinted to impossible earlier production dates to test the waters and hook reservationists. I doubt many would have plunked down all in non-refundable reservation deposit funding for EM to use for it's daily operations if the actual production date been announced at 4-5 years out. EM continues using that tactic until they contract guarantee that the Elio will be built and provide both the new and early reservations with a specific production/delivery date.

 

[Ekh]

At this point I'm not too concerned about the fleet reservations, I want to start planning for a one way airplane ticket from Portland Maine to Shreveport Lousiana, and figure what hotels are close by the factory.

If that takes you more than 2 minutes, you're in trouble. Took me 1 minute 30 seconds to find Sleep Inn & Suites I-20, 3 miles from the plant. There are others closer but the roaches would outnumber the guests 15:1

 

[Ty]

(.....conspiracy theory back on track....... )

The factory is fully tooled from building Hummeds. Elio owns all the equipment. It'll have to be recalibrated, of course but it's all there.

 

[Ekh]

The google alert that I got said that Elio was producing the 100 Elios for the funding they'll provide. Paul said they were calculating a profit per production vehicle of $1,000. IF they can make the first limited production run at the same cost, they'll make $100,000 from building 100 Elios... hardly a funding bonanza!

$700,000 to maybe $1 million isn't worth it. There are other, better reasons for Elio to make this move.

 

[Ekh]

Who is buying these 100 Elios?



A company providing these vehicles for employees would be opening themselves up to lawsuit if and employee had an accident. Also, these are expensive semi handmade vehicles. Most companies want economical vehicles. A company making the purchase does not make sense.

”

It certainly does make sense. Let's say these Elios sell for $8,000 each. That's $800,000 the fleet operator has to pay. Standard sedans would cost $3,000,000, at the very least $2,500,000. So even if these first-run cars are a pain in the ass and have teething problems, the purchase price alone is worth it. Furthermore, the lower maintenance costs and lower insurance costs make this a great choice from the bean-counter's perspective. If the company is oriented towards progressive policies and being green, it's a great PR coup for them.

Great choice? You betcha!

 

[Ekh]

there appears to be more to it .... from the news release "Although the fleet vehicle build is a step in the right direction for the end consumer driving experience, the bulk of the consumer launch will have to be moved into 2017 at a date to be determined, as the company continues to seek additional funding." .... it will be interesting to to see how far into 2017

More than "interesting" to me. I'm 70, and pretty damn sick of perpetual postponements. I think this 100 pre-production sale is a way of putting a good face on the fact that they DO NOT HAVE THE MONEY. I don't care a fig for "alternative routes" because we've heard about them forever with nothing showing up. It's ATVM or nothing, I believe.

So while I'm personally pissed, I think the company is doing the smart thing and that it may pay off in the end. But it doesn't feel good, and that's the truth.