Hot Off The Press: Intent To Manufacture Engines Signed With Linamar

[Frim]

It would be interesting to see when they start mass producing Elio engines and if that were to happen before Elio car production then it could provide a strong source of income.[/QUOTE

They will have to have 100 engines for the first 100 cars. However, how do you make money by mass producing for cars that are not scheduled? Therefore, 100 engines would only be a tool-up. Logically, mass production would come after the 100 are tested and before car production can begin. I am still hoping for first Q 2017.

 

[Sethodine]

Ah, true. But I do hope the motors are assembled in Michigan, they need the jobs I hear.

The announcement seems to say that the engines will be built at the Shreevesport plant, but with the experience and know-how of Linamar doing the engineering and distribution. Although it wouldn't surprise me if this deal included additional manufacturing rights for Linamar at their factories.

 

[Maurtis]

The announcement seems to say that the engines will be built at the Shreevesport plant, but with the experience and know-how of Linamar doing the engineering and distribution. Although it wouldn't surprise me if this deal included additional manufacturing rights for Linamar at their factories.

You are absolutely right, I completely missed that sentence: "They will collaborate with Elio Motors to create engine manufacturing capabilities at the Elio Motors' assembly plant in Louisiana to support the high-volume production of the Elio engine."

 

[TCBronson]

The announcement seems to say that the engines will be built at the Shreevesport plant, but with the experience and know-how of Linamar doing the engineering and distribution. Although it wouldn't surprise me if this deal included additional manufacturing rights for Linamar at their factories.

Perhaps license rights to produce and distribute sales world wide?

 

[AriLea]

Global sales? I wonder what sort of applications global manufacturers might have for an engine like this. Maybe an Asian-style mini truck? Rick shaws / tuk-tuks?

But really, if we can get Elio crate engines here in the US then I'd be a happy clam.

I think everything the G10 engine was. Mini-Cars/trucks, tuk-tuk, utility pumps and gensets, ultra-light aircraft, boats, more boats, maybe some motorcycles?. There seems to be a few.

We have to keep in mind, this is intended to be an inexpensive engine with a volume production to support that. The cost/unit rate puts it in competition with a sizable market of small engine applications which (at this level of quality) hasn't had to compete with this low of a cost. I'd say it potentially could be more lucrative for the engine as a profit center than what Elio autocycle would provide.

 

[Ty]

The announcement seems to say that the engines will be built at the Shreevesport plant, but with the experience and know-how of Linamar doing the engineering and distribution. Although it wouldn't surprise me if this deal included additional manufacturing rights for Linamar at their factories.

What that doesn't say is that the Elio engine will be built in Shreveport, actually. It says they'll create capability. I would think, since Elio is apparently selling manufacturing rights, that the first engines will be built at Linamar's facilities until they can set up engine assembly at Shreveport. It could take some time to set up the engine assembly line from scratch. Sourcing the engines externally could be a way to jumpstart production.

 

[ThreeWheelBurnin]

I think everything the G10 engine was. Mini-Cars/trucks, tuk-tuk, utility pumps and gensets, ultra-light aircraft, boats, more boats, maybe some motorcycles?. There seems to be a few.

We have to keep in mind, this is intended to be an inexpensive engine with a volume production to support that. The cost/unit rate puts it in competition with a sizable market of small engine applications which (at this level of quality) hasn't had to compete with this low of a cost. I'd say it potentially could be more lucrative for the engine as a profit center than what Elio autocycle would provide.

A smaller, lighter replacement for the Chevy Volt engine? :-) A 55hp (41kW) engine should be plenty to keep the Volt going in most circumstances. The 65kW engine in the 2011-2015 Volt (75kW for the 2016+) seems more than enough. The only time I ever see the Volt pull more than about 35kW is when I floor it in sport mode. 110kW to the wheels can be invigorating every now and then!

That said, I still want my Elio.

 

[BiloxiGeek]

Ideal outcome of this.....

This has potential to generate some cash flow for Elio. If Linamar can spin up manufacturing quickly, sell them overseas, the money will start to flow.

And other users of the engine can start to do real world testing and feedback.

 

[Ekh]

I think the deal may be better than that. It may just be that linamar will help fund the construction of the Shreveport engine facility in return 4 the license to distribute engines worldwide. If so that takes a considerable divot out of the money Elio has to find to set up shop.

 

[Coss]

I think the deal may be better than that. It may just be that linamar will help fund the construction of the Shreveport engine facility in return 4 the license to distribute engines worldwide. If so that takes a considerable divot out of the money Elio has to find to set up shop.

They saw some kind of big potential in that motor to be interested enough to do that.
That's awesome.