Factory Pickup, Retail Store Pickup, Or Delivery

[Charlie G]

Something to consider... EM won't be at 500 cars / day, looking at the production graph, until they've produced 20,000 vehicles during the first 90 days. And that's if all goes as planned. They have a lot of vehicles to deliver, not everyone will be able to get to the plant, so they will have to figure something out for sure.

I'm not trying to say they would be ready.
Or they'd actually reach that production scale, or when.

The thing is if they're planning to hit that scale, they have to plan to support it.
I don't believe it's realistic to think they're going to just start making cars and figure out shipping logistics when the time comes.
I'm sure they're not saying "let's just load the first 20k cars onto flatbeds until we figure out a better strategy".
Distribution has to be a part of their business model from the start, and if their business model says they're going to plan on producing 500 cars a day, then it needs to also plan on delivering 500 cars a day.

If they're going to load these things on modified car carriers, it doesn't make a ton of sense to me that they would plan, tool, and implement a solution for the first 20000, and do something completely different once things are up to speed. If it were me I would keep it as close to the final plan as financially possible to avoid problems down the road.

 

[Charlie G]

If I were them, from day 1 I would ship all the vehicles from the plant to a few key distribution centers via train where they would be temporarily stored. Logistics of delivering them to the 'target markets' would be managed from those locations using whatever carriers/trucks/etc are going to be used long term, just in fewer number. Instead of delivering them to stores, initially they would go to strategically selected pep boys locations, with more centralized locations getting expedited priority e.g. "you may be number 255, but unless you can pick it up at site 'F' 1 state over, you'll have to wait an additional month before we have enough deliveries to make a trip to your local drop site"
As demand ramped up to the point a distribution center is getting too much burden, I'd add another - strategically placed to divide the real-world workload.

 

[Rickb]

If you assume Elio will have stores up and running by the time production starts Sept. 2015......they had better have started locking in physical site locations and started construction or remodel of existing lease locations. Partnering with an established auto carrier to ship to your home or nearest Pep Boys location is more realistic. Quite frankly setting up Elio Store in or adjacent to Pep Boys is a wise business strategy for convenient customer access to sales, installation of options, and servicing. A win, win, win. scenario.

 

[elio_curious]

The easiest place for them to start distributing cars is right there at the plant (have you ever picked up a rental car?).

They have TONS of parking space. They email you a couple days before - "Your Elio is ready for pickup".

You get there, sign paperwork, drive home (however far that is, I'm in CA). I'd do that to help Elio get these cars distributed.

BUT, for me to go get it, I'd not want to pay the $750, $400 (whatever it is) "destination charge"...

 

[D Borland]

Destination and Dealer prep charges will apply to Elio. I would think if you are picking up at the factory it would be minimal or no charge at all. Although everyone may have to pay Dealer prep.

The last time I bought a new vehicle. I picked it up at the factory where it was made. I still had to pay FOB Detroit.It had to do with UAW agreements or something like that.

 

[D Borland]

The Teamsters will get their fee, regardless of where you pick it up.

 

[skygazer6033]

Paul has already made the statement that the stores and distribution centers will (probably) not be used the first year. The first years production will be going to the Beta testers (us) therefore they won't need stores. I'm sure the option of factory pickup would be great for both the buyer and Elio. Being able to concentrate on production, get money coming in and delay most of the logistical and sales headaches for a year would be great. The adventure of factory tour and pickup would be priceless.

 

[goofyone]

In the Town Hall meeting Paul Elio directly addressed the distribution of vehicles to reservation holders. What he said was that during this period the retail stores and marshaling centers would not be needed as Elio Motors would have already sold these vehicles and they know where they are going. So we know what and why but we do not know how delivery will be handled during the reservation period other than factory pick-up orders.

I am sure Elio Motors already has a pretty good idea of how the delivery of reserved vehicles will work however I am sure they will continue working on the details until they need to make the final decisions and nail down transport and delivery contracts.

Doing it this way also allows Shreveport to become a test bed for procedures and the layout of the distribution/finishing centers which will eventually open throughout the country. This also allows them to sell vehicles without the added expense of the distribution and retail system and likely actually provides the funding to build out this infrastructure.

 

[Rickb]

The last time I bought a new vehicle. I picked it up at the factory where it was made. I still had to pay FOB Detroit.It had to do with UAW agreements or something like that.

There is no UAW in Shreveport's Elio Plant. Management and labor practices will be interesting to watch as hiring the new Elio Motors work force unfolds.

 

[goofyone]

After the reservation period the retail stores will open and we have a better idea of the plan at that time even if some details are missing. The plan is for the plant to produce 14 base models with the only difference between vehicles being the seven color and two transmission options. After completing basic assembly the majority of the vehicles will likely be loaded onto rail cars for delivery to 6 to 11 remote distribution/marshaling/finishing centers throughout the country. The remaining vehicles will be completed by the finishing center which is part of the Shreveport factory complex for factory pick-up or delivery to nearby retail stores.

When a buyer places an order for a new Elio at an Elio Motors retail store or online this order is routed to the nearest distribution/finishing center where the base vehicle selected is then outfitted with options by technicians and prepared for delivery. The vehicle will then be loaded onto a truck for delivery to the retail store or direct to your home depending on what level of service you selected. Elio's stated goal is to try and have vehicles prepared and ready for pickup at retail stores the very next day. I am sure there will be a lot of asterisks by this next day goal and it will likely not be guaranteed as this will depend on many factors such as time of day, sales volume, vehicle availability. and parts availability.