Why The Prototypes Have To Wait On The Engine

[RUCRAYZE]

what impact, if any do you think the $500 incentive will effect cash flow/profits, as they start rolling off the line?

 

[Smitty901]

what impact, if any do you think the $500 incentive will effect cash flow/profits, as they start rolling off the line?

None, the first ELIO's to come off the line will be sold at a loss. ELIO's profit will come in numbers once they roll off the line and out the door.
Profit per unit will be small. You can bet as ELIO's sale raise so will the price and option to bring in more revenue .
IF ELIO can get them on the road they should sell, not to everyone but enough to build a market . ELIO gear will sell as a cult following and be worn proudly by owners and want to be owners. Much like Harley but a smaller scale.
ELIO will sell both to a practical consumer low cost to buy low cost to operate and to those that just want to be different. To some the ELIO will be a canvas to mod out to fit their own vision. ELIO has a chance to really be something different. They need to build it now then get back to marketing.
40,000 pre-orders in different forms is not a lot in some ways but when it comes to a car/motorcycle not even built yet, no track record as a company. It is a pretty big deal.
ELIO lock the marketing guy in the hall closet put the many person in charge. The idea person did their part now let the builders take over.

 

[Ty]

... CAFE credits sold to other manufacturers perhaps... there is potential profit there.

 

[Rickb]

... CAFE credits sold to other manufacturers perhaps... there is potential profit there.

That's a big potential for return on investment. This question has probably been answered but, since the fuel regulations were set initially for cars and the next year a second category for light trucks does Elio technically CAFE qualify because of it's motorcycle classification?

 

[Kuda]

That's a big potential for return on investment. This question has probably been answered but, since the fuel regulations were set initially for cars and the next year a second category for light trucks does Elio technically CAFE qualify because of it's motorcycle classification?

http://elioowners.com/threads/anyone-else-think-it-wont-happen.1808/page-67#post-83776

This would be accurate if 'Cafe Credits' didn't exist.
Granted they aren't a done deal yet but should be
finalized this year (Joel feel free to weigh in) @ $2,400
per credit + the projected base profit, $1,000 on each built
Elio, that makes for net profit of $3,400 per unit built............

 

[Ekh]

I wonder about the assets you mention. I'm guessing they are minimal, and liquid assests are probably being used to meet daily expenses while waiting on funding options. I think while navigating the rapids they got hung up on a rock and are waiting for an emergency venture capitalist to rescue them.

It's certain that cash is tight at this point. Just how tight, I don't know. Liquidity is the magic question; they need Comau to get cracking -- but they can't fire sale the stuff, either.

 

[AriLea]

From Wikipedia:

"A harmonic balancer (also called crank pulley damper, crankshaft damper, torsional damper, or vibration damper) is a device connected to the crankshaft of an engine to reduce torsional vibration and serves as a pulley for drive belts.[1][2]

Every time the cylinders fire, torque is imparted to the crankshaft. The crankshaft deflects under this torque, which sets up vibrations when the torque is released. ...."

I thought I might interject, the dampener doesn't do as much for linear vibrations as it does for torsional. Other balancing of parts affect that. Anyway, the support for the engine would need to take those other 'motions' into account, if very pronounced.

Still, I think all this staging of phases is about overall planning in cooperation with other partners, as much as the technical interdependencies.

 

[Rickb]

I checked and Elio does not qualify for CAFE credits as a motorcycle classification, or autocycle which is still a defined class of motorcycle. Elio will have a motorcycle VIN number for individual State MC registration and licensing requirements. So much for CAFE profits. Tesla apparently breaks even on the manufacturing side and makes their profit from CAFE credits sold.

 

[Smitty901]

Make the rear tire a dual wheel . Bang no more motorcycle. Of course that could create other issues with standards that must be met.

 

[Rickb]

Make the rear tire a dual wheel . Bang no more motorcycle. Of course that could create other issues with standards that must be met.

BOOM! Classify Elio as a car and there would less likely be an Elio and if so there would be testing years out to meet auto standards.

With that said, Mr. Elio apparently made the statement at a Caddo Parrish Commission Meeting that they were currently working on legislation to classify Elio as a car so they would meet the CAFE credit requirements when discussing funding options and profit potential.