Where Do You Stand Now?

[Ekh]

It is a valid concern*. But that's where the price and mpg come into play.**

Yes, motorcycle oriented people like it, that's a sizable niche, (no fade expected)
Three wheeler enthusiasts like it, small but energetic niche, (no fade expected)
Social club people like it, that's a niche,(growth over time expected, up to 5years - 10 years)
*Novelty motivated people like it, that's a niche reducing as sales rise (fade expected),
Green oriented people like it, a strong niche, greatly enhanced by the** low cost threshold to play,(no fade expected, depending on factors)
People with low income like it, that's a... NOT a niche but an ongoing segment, *** (no fade expected, depending on economic factors)
**Cost-per-month people who commute like it, that's not a niche, and a very large opportunity. (no fade expected, depending on alternatives)
Diamond lane access commuters like it, all weather access is their objective (no fade expected, depending on alternatives)
**Cost sensitive commercial and government applications, medium size segment (some fade expected to a dependable renewal, depending on alternatives)
**People who drive a long distance for some purpose, travel costs becoming a principle issue, (no fade expected, depending on alternatives)

*** (Everyone needs transportation) The Messerschmitt three wheeler and Issetta are good comparisons for this segment. These enjoyed good patronage until economics and alternatives made them obsolete. But it's important to realize these were not executed as 'or' vehicles but as accessible alternatives in hard economic times. The times changed, and cost attractive alternatives were developed.

The kind of cost-vs-purpose motivation for the Elio is expected to be an ongoing factor without a known end point while the transportation system remains in it's current technology. It would take a dramatic change of technology to alter that formula.

As for alternatives, the low price of the Elio is a strategic policy that serves as a dis-incentive to competitors. All the potential competition will wait to see how this play's out. Meanwhile Elio should become market established and stable. Elio motors is therefore not likely to change that strategy while volumes remain at viable levels. And a small vehicle like this has one secrete weapon. Relative to larger vehicles, the ability to accommodate variations in sales levels is more flexible and scalable. Less stuff is just simply more agile. All parts and most tools being more exchangeable between automation vs human handling is one example of this flexibility.

The cost to execute in the hundreds of millions is also a deterrent for competiton. Once Elio is established, there is more opportunity in complementing the new market than going head to head with Elio. Another way to say this, since now people can depend on an Elio to save them money, they can now chose bigger, more luxurious and maybe less efficient vehicles for their 'And' compliment to the Elio. Instead of a Sedan and a Minivan, maybe they can choose to get an Elio (or two) and a 4x4-Six Pack Truck. Some people may get and Elio for work, and something like a Tesla for evening socials.

As for the foreign competition, the import costs become a significant percentage of a $7k vehicle, this will continue to give Elio leverage so long as the brand remains in good standing with the public, and Elio Motors sticks to their strategic low cost formula. The Slingshot is a example from China, it sells here for over $22k, no opportunity to compete with the Elio price point even though simpler and cheaper to produce.

Some excellent points, AriLea, especially about the low price point making it hard for others to move in on them. Detroit HATES small, cheap cars because the margins are so much slimmer, and their overhead is just the same as for the more profitable large cars and SUVs.

 

[Inigo93]

Alabama is the only state with No required motorcycle endorsement .

Not so.

California has no motorcycle license requirement for three wheeled vehicles. This is nothing new. It's been this way for a very long time.

As for helmet requirements.... I know that California has no requirement for a helmet on an *enclosed* motorcycle with a GVW greater than 1000 pounds, but I'm not sure how long this law his been on the books. At least a year (ie, when I did the homework), but I can't imagine that particular law is too terribly old.

 

[BlioKart]

The last time (I think 2001) when I saw the doc fee, I picked up my plates which were on the desk and walked out to my trade-in. The "closer" followed me out and asked what I was doing. I told him I was taking my old car and going home. He took the entire doc fee of the purchase agreement. I think we have purchased 5 more vehicles from dealers since and never paid a doc fee. Never gone home without the car.

Thats the reality of the situation they need you more than you need them.

 

[Smitty901]

Not so.

California has no motorcycle license requirement for three wheeled vehicles. This is nothing new. It's been this way for a very long time.

As for helmet requirements.... I know that California has no requirement for a helmet on an *enclosed* motorcycle with a GVW greater than 1000 pounds, but I'm not sure how long this law his been on the books. At least a year (ie, when I did the homework), but I can't imagine that particular law is too terribly old.

You did not read what was posted. CA does have a motorcycle endorsement has for a long time. CA can do what ever it wants in CA but leave the state without a CA motorcycle endorsement on any 3 wheeler and you will get a ticket. You are fine in CA with in their boarders.
The only state in the USA that has NO required motorcycle endorsement at this time is Alabama .And that will not be that way much longer.
Many Alabama riders though they could get way with out paying the fee and getting an endorsement , as soon as they cross over into another state they paid up.
You only have reciprocity when the state you are from has an endorsement.
Until Alabama fixes the law anyone can go there get on any motorcycle any size and ride as long as they have a regular car license has nothing to do wit 3 wheeler exemptions. They are the only State like that as of now.

 

[BlioKart]

I'll just pick up my car at the factory and drive like hell out of LA in the shroud of darkness -- hate it down there anyway. Hot, sticky, with bugs the size of pelicans and snakes in the swimming pools.

Have to pick up the car somewhere, because Elio can't sell them in Ohio. and they still aren't saying anything about that inconvenient truth.

as long as the bugs and snakes aren't inside the Elio its all good.

 

[Smitty901]

that is really interesting .... info appreciated .... hopefully they can get it through at the federal level

ELIO could make history with this. The ELIO being an enclosed cab and car like in so many ways once on the road. Elio could be the exception to the rule. I would be the catalyst for change in the regulations and laws.

 

[Rickb]

It seems many states have already passed legislation that did just that with the autocycle exemption.....no MC endorsement or helmets required. What am I missing here? Elio is required to be licensed in the States as a motorcycle because it is and needs to remain a motorcycle classified vehicle.

 

[Coss]

Once the Elio is out, and the competition shows up and starts selling "like" vehicles the states will probably create a new category for licensing and endorsements.

 

[AriLea]

Problem is if you leave Colorado you must have the endorsement . Colorado's exemption does not apply to any State except Colorado .

So true, and a worry only in the short term. I can't imagine any state hell bent on keeping this limitation for the Elio once it's out. They will be sooo shamed by the technical details, it will be fixed.

To some degree all the changes in the law so far have resulted from looking at that silliness of not accomidating the autocycle, even though the production version doesn't exist yet. It's a hint to the future.

 

[Jambe]

Just a reminder, folks...
Don't believe everything you read on internet forums.