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1/6/2015 - Jalopnik - Elio's Ceo Explains How He Can Sell An 84 Mpg Car For $6,800
- Thread starter goofyone
- Start date
Jay3wheel
Elio Addict
There is supposed to be a second part of this interview, does anyone know how to find it?
It likely will not be out until next week as the first part was just posted yesterday.
Hotscoots
Elio Addict
http://carbuying.jalopnik.com/elios-ceo-explains-how-he-can-sell-an-84-mpg-car-for-6-1677743693
Some good info . If this was discussed elsewhere , I missed it .
Interesting Excerps :
Tavarish: Where did the 84 miles per gallon figure come from? Was it after research or was it just a goal that you set for yourself?
Paul Elio: A little bit of both. I wanted it to be high mileage, and I think our initial target was 75, and then we realized we could do better. 84 was a stretch target if you will, and we're very close to hitting it. Right now, I think we're about 81.4, but we're continuing to work on the design. So I don't know that we'll hit 84, but let's face it, if we go into production at 81, did we fail? I want to hit it because I said I would. But from a social impact and product value, anywhere in that neighborhood is going to be dandy and I know we're there.
Tavarish: I've owned many scooters and have been around motorcycles for quite some time, and I understand that there are different technologies there, which does account for some of the price difference, for example aluminum frames and highly-strung miniaturized race engines on sports bikes. For the Elio, I think the claim is a little lofty. If you had said "This is going to be less than $10,000", it would be a little more palatable, but $6800 seems too good to be true.
Paul Elio: In all honesty, it's a stretch target. And at full disclosure, we're about $500 over budget today. If we went into production immediately, it would be 81 miles per gallon, and $7300. I don't view it as a failure, and we're working hard to hit our numbers because I think we have a decent shot of doing it. That number isn't made up, we have every single part that's required to make this vehicle, we have 87 percent quoted by part number and 98 percent by dollar value. So we can do this, I have the data to back it up.
Some good info . If this was discussed elsewhere , I missed it .
Interesting Excerps :
Tavarish: Where did the 84 miles per gallon figure come from? Was it after research or was it just a goal that you set for yourself?
Paul Elio: A little bit of both. I wanted it to be high mileage, and I think our initial target was 75, and then we realized we could do better. 84 was a stretch target if you will, and we're very close to hitting it. Right now, I think we're about 81.4, but we're continuing to work on the design. So I don't know that we'll hit 84, but let's face it, if we go into production at 81, did we fail? I want to hit it because I said I would. But from a social impact and product value, anywhere in that neighborhood is going to be dandy and I know we're there.
Tavarish: I've owned many scooters and have been around motorcycles for quite some time, and I understand that there are different technologies there, which does account for some of the price difference, for example aluminum frames and highly-strung miniaturized race engines on sports bikes. For the Elio, I think the claim is a little lofty. If you had said "This is going to be less than $10,000", it would be a little more palatable, but $6800 seems too good to be true.
Paul Elio: In all honesty, it's a stretch target. And at full disclosure, we're about $500 over budget today. If we went into production immediately, it would be 81 miles per gallon, and $7300. I don't view it as a failure, and we're working hard to hit our numbers because I think we have a decent shot of doing it. That number isn't made up, we have every single part that's required to make this vehicle, we have 87 percent quoted by part number and 98 percent by dollar value. So we can do this, I have the data to back it up.
Hotscoots
Elio Addict
Oops , I started a new thread on this . Apologies as I did not see this , even after search ......Great article .
NSTG8R
Elio Addict
First I've heard of this. VERY good news! 
Thanks for the link and highlights.
Thanks for the link and highlights.
"Tavarish: Hi, Paul. Thanks for taking some time to talk to me about your project. Getting straight into it, I know you touched on this a bit on your website, but why are you developing your own engine versus using the Geo Metro/Suzuki 3-cylinder, or any other small powerplant for that matter?
Paul Elio: Well, when we started out, I don't think we had the cachet to get somebody to sell us the kind of volume of engines that we needed. Actually, I'm certain of it. Only the big guys make engines in meaningful numbers. So I'd have to get Ford, GM, Toyota, Chrysler, or somebody to get interested enough to sell me that many motors. That opportunity just wasn't available then – it is now, but it wasn't then. That's why we went down that path"
I wonder what engine Elio would choose if they weren't building there own?
Paul Elio: Well, when we started out, I don't think we had the cachet to get somebody to sell us the kind of volume of engines that we needed. Actually, I'm certain of it. Only the big guys make engines in meaningful numbers. So I'd have to get Ford, GM, Toyota, Chrysler, or somebody to get interested enough to sell me that many motors. That opportunity just wasn't available then – it is now, but it wasn't then. That's why we went down that path"
I wonder what engine Elio would choose if they weren't building there own?
My guess would be something from Chrysler/Fiat as that is where EM appears to have a lot of connections.
Fiat actually has a 'TwinAir 60' engine they make in large numbers for sale in Europe which would work perfectly in place of the IAV engine. They have several variations on the same two-cylinder roughly 0.9L engine block, 1 naturally aspirated and 2 turbo versions, which produce 60, 85, and 105 HP and 65, 90, and 107 ft-lb of torque respectively. These engines are very new and modern, only available for sale since 2010, and designed to be very fuel efficient while producing ultra low emissions and being very inexpensive for use in the most inexpensive cars in the lineup.
http://en.wikipedia.org/wiki/Twinair_engine
But it could also be anybody as I am sure anyone in the industry would take a call, and at least be willing to listen to, the former CEO of DaimlerChrysler, James Holden, who is an EM investor and sits on EM board of directors.
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