Somewhat Tough Questions...

[JEBar]

all of EM's expenses have to be paid for through profits on units sold .... as to how many

.... the company is probably structured to where its investors and/or the government loan will cover the expenses until the company turns a profit .... by the time they get to the point of producing 250,000 per year, it shouldn't take too long

Jim

 

[goofyone]

While Elio may not have it's own R&D Dept, it is paying for R&D. The IAV engine for example.
My question is. How many Elios will they have to sell to pay for the R&D of the engine?
Would it be one years production of ten years? and the first four prototypes, they were expensive.
How many years production to pay for that. All R&D will have to be paid for out of the units sold, but how many units!?

As far as I can tell from various comments EM has made, EM has raised, and mostly spent, about $75 million dollars so far from private investors. This is of course money the investors would like to recoup and not lose so they want to see EM succeed. The project also has a loan for about $25 million for all the equipment in the GM plant which they expect to pay off with the proceeds from the excess equipment sale which they also predict will generate $30+ million which EM plans to use for actually completing the vehicle development and testing phase which takes them to production. So even before EM ever begins any work on the plant just getting the company and vehicle to a production ready state would have cost about $150 million of which about half the investors want to see back.

From what we know EM intends to have a profit of about $1,000 per base vehicle at a production rate of 250K vehicles per year which is $250 million dollars per year of profit plus profits from the sale of options, accessories, financing, and any other profit making deal EM can make. With those kind of numbers even if EM only sells half as many vehicles or makes half the profit per vehicle they expect they would still be just fine in terms of finances.

 

[Smitty901]

Contracting out is very common today in many companies. It is often the most productive and cost saving way to do things. Now that is not to say a few years down the road ELIO may wish to do more in house . For now it makes sense you do not have the capital out lay nor the cost in wages or compensation you do with using a contractor and paying only for what you use. It also gives you the flexibility to use the best you can find.

 

[RKing]

My statement as to the Gov not really caring is related to durability and not mandated equipment nor EPA. Ride quality, durability of powertrain and components, cockpit noise, handling and comfort ect. are unregulated and still can make or break Elio.
most industries are not self regulating, the ones that seem to be are actually doing so to be competitive and survive. The auto industry is getting there, very slowly , but there is really very little difference between a 20K Ford, GM, or Toy. If they don't matain the quality and execution they will not survive. Meeting Gov regs is just the opening bid, providing an exceptional vehicle is where the money is.
Any manufacturer can build a car that will meet all regs and the MPG requirement , problem is the public won't buy them in enough quanity to breakeven (speaking of US). Or so they think ,, I don't know if they are right or not, But the price point and extreme MPG of the Elio make it a trend setter, and maybe the big guys will open their eyes and follow suit. they cannot compete on price with Elio due to the overhead they have created, so they put lots of "stuff" on base cars to make it seem the price is "worth it". Truth is without all the "stuff" the price would be about the same. The "stuff" is where they compete. Good Grief I ramble,,, Sorry

 

[ecdriver711]

When Elio Motors changes the way people look at transportation, next year; the need to make a documentary about it.

 

[Smitty901]

When Elio Motors changes the way people look at transportation, next year; the need to make a documentary about it.

Next year at this time some of us on this forum will truly be ELIO owners. The first wave of something new and different

 

[Smitty901]

They have been running these Prototypes around. I wonder how many miles they have on the frames .How many have been recycled into new prototypes?
That would be an interesting subject to hear from ELIO on.
Elio will not only create a new market it will take market share from other failures, like the Smart dumb car.

 

[karl]

They have been running these Prototypes around. I wonder how many miles they have on the frames .How many have been recycled into new prototypes?
That would be an interesting subject to hear from ELIO on.
Elio will not only create a new market it will take market share from other failures, like the Smart dumb car.

Take a deep breath...

 

[pistonboy]

This thing will meet and exceed motorcycle standards in whatever time it takes to get to production. Much less time and money than if Elio was developing a vehicle that had to meet auto standards.

So why the push to get it classified as an autocycle? Newly made standards for the autocycle will probably be the same as for cars which will be more stringent than for motorcycles. Gone are the advantages of being classified as a motorcycle. Autocycle classification is not necessary to remove helmet and motorcycle licenses requirements either. This would be a bureaucrats dream. They can strangle it with all kinds of new regulations for this new classification. I live in California and I fear this. I am ordering mine early so I can hopefully get it grandfathered in as a motorcycle before they classify them as autocycles. Also, could we still use them on the HOV lanes? The law says motorcycles can go on the HOV lanes, it does not say that autocycles can. Modifications can be made to motorcycle engines, not to auto engines that have to be smog checked every two years as is current in California. What about other states. I would like to hear other ideas on this. Thanks.

 

[RUCRAYZE]

So why the push to get it classified as an autocycle? Newly made standards for the autocycle will probably be the same as for cars which will be more stringent than for motorcycles. Gone are the advantages of being classified as a motorcycle. Autocycle classification is not necessary to remove helmet and motorcycle licenses requirements either. This would be a bureaucrats dream. They can strangle it with all kinds of new regulations for this new classification. I live in California and I fear this. I am ordering mine early so I can hopefully get it grandfathered in as a motorcycle before they classify them as autocycles. Also, could we still use them on the HOV lanes? The law says motorcycles can go on the HOV lanes, it does not say that autocycles can. Modifications can be made to motorcycle engines, not to auto engines that have to be smog checked every two years as is current in California. What about other states. I would like to hear other ideas on this. Thanks.

Excellent observations, and as you become more knowledgable as to E.M.'s planning to get this product to market, you'll begin to learn the answers to many of your concerns- basically- use the best of both worlds (cars and motorcycles) to manufacture a safe, low cost, machine that will appeal to many looking for such a product.