10/9/14 - Elio Motors: Company Reopens Shreveport Gm Plant, Breathing Life Into Struggling Town

[Charlie G]

Posted by: Amir Heydari
Posted date: October 09, 2014
In: Economy

Elio Motors is getting ready to start production of their unique three-wheeled, two-passenger car. The company hopes to hire up to 1,500 personnel to manufacture the vehicles, starting with 800 workers in the early part of 2015. To accomplish this, Elio will be using the General Motors Shreveport Operations plant in Caddo Parish, Louisiana, which closed in 2012.

Over 800 people lost their jobs when the Shreveport Operations factory closed its doors, which once employed over 3,000 workers at the height of the plant’s production. This is welcome news for the many who were disappointed when the factory closed, but some are still skeptical about Elio Motors’ claims, as well as the marketability of the strange little three-wheeler.

There’s no denying that CEO Paul Elio is a man of vision and ambition, going to great lengths to see his project realized. Many others believe in the company too, as Elio Motors has already secured tens of thousands of pre-orders for their new vehicle. In August alone, over 6,000 people reserved their own model for when it arrives next year.

Production was initially delayed due to a lack of funding, but things are now moving forward. Elio Motors is currently selling off un-needed equipment from the GM plant, which should earn the company millions of dollars in capital. Furthermore, Paul Elio has applied for a $185 million loan from the Energy Department, and recently stated that the application process is going well.



Despite the three-wheeler’s odd looks, it is hard to argue the economy of the small car. Boasting 49 miles per gallon for city driving and 84mpg highway, the fuel efficiency of Elio’s vehicle is unrivaled. Also attractive is the price, coming in at just $6,800.

But perhaps most importantly for the people of Caddo Parish, Paul Elio believes that over 10,000 jobs will be created as a result of his project through the company’s factory and supply network. The entrepreneur also noted that many of the auto-workers who lost their jobs in 2012 are now unemployed or underemployed but still know how to make cars, and will be welcome back at the Shreveport plant.




Article here

 

[Jeff Porter]

Thanks for posting Charlie!

If I remember correctly, Amir Heydari didn't get alot of facts right in his last article about the Elio.

I dunno about some of the statements... is the plant reopened? Are 800 workers going to be hired in the early part of 2015? We on this forum know those things aren't going to happen, unless a miracle of funding happens early.

 

[Kuda]

Thanks for posting Charlie!

If I remember correctly, Amir Heydari didn't get alot of facts right in his last article about the Elio.

I dunno about some of the statements... is the plant reopened? Are 800 workers going to be hired in the early part of 2015? We on this forum know those things aren't going to happen, unless a miracle of funding happens early.

Jeff,
I could be all wet, but given all we've learned since the first of this
year, & seeing various milestones being met (i.e.) engine castings,
plant production mapping, etc.etc. I believe Elio has the wherewithal
meet production of 60,000 unit(s) in the 4th Qtr. of '15. Easiest indicator
is the Gov. loan is predicated on Elio being solvent, & so on........

 

[Jeff Porter]

Jeff,
I could be all wet, but given all we've learned since the first of this
year, & seeing various milestones being met (i.e.) engine castings,
plant production mapping, etc.etc. I believe Elio has the wherewithal
meet production of 60,000 unit(s) in the 4th Qtr. of '15. Easiest indicator
is the Gov. loan is predicated on Elio being solvent, & so on........

Hi Kuda! Love the coyote and the road runner!

I think production of units can happen in 2015 also, hoping for a Sept start.

I've done a production estimate spreadsheet, where it shows the plant slowly ramping up on a daily car production rate increase. And it is just an estimate, but it's an educated guess, based on things we've see GoofyOne state and Elio state. The spreadsheet shows the 60,000 unit total being reached just short of 6 months. If production starts say Sept 7, when work wraps up the day before New Year's Eve, the total is about 33,500.

I love your optimism, I'm an optimistic person myself. It just looks realistically that if they slowly ramp up to 500 cars per day by the end of the 3rd month and 1000 cars per day by the end of the 6th month, it would be March 2016 when they get to 60,000 units.

 

[AriLea]

But perhaps most importantly for the people of Caddo Parish, Paul Elio believes that over 10,000 jobs will be created as a result of his project through the company’s factory and supply network.

If I remember right, base industry, things like mining and smelting and manufacturing, represents less than 5% of regional income in a fully mature local economy. That is to say, if you suddenly hire 1500 workers, the local economy will eventually expand by 30,000 jobs(if same wages), so long as other base industries are not hurt by competition for resources or reduction of efficiencies.

The same kind of thing must happen related to money saved. If every Elio driver in the US saves an average of $200 per month, there will be an expansion of spending money but also other economic expansion related to that spending.

Let's suggest that 5million elio-Owners save $100/mo and that the resulting expansion is 80% or about 4times, that's $2,000,000,000 in economic expansion per month! or $24 Billion per year. Something to think about.

We need an open minded government economist to think about that. (oops, inherent double oxymoron for both open AND thinking)

 

[Kuda]

Snipped: I love your optimism, I'm an optimistic person myself. It just looks realistically that if they slowly ramp up to 500 cars per day by the end of the 3rd month and 1000 cars per day by the end of the 6th month, it would be March 2016 when they get to 60,000 units.

I did temper my optimism a little by shifting to the 4th Qtr. instead
of Elio's projected 3rd. But all things being equal if they start by years
end I'll be happy. As said before what will tell the tale will be the 4th
Qtr. ('14) testing as advertised..................

 

[zelio]

Posted by: Amir Heydari
Posted date: October 09, 2014
In: Economy

Elio Motors is getting ready to start production of their unique three-wheeled, two-passenger car. The company hopes to hire up to 1,500 personnel to manufacture the vehicles, starting with 800 workers in the early part of 2015. To accomplish this, Elio will be using the General Motors Shreveport Operations plant in Caddo Parish, Louisiana, which closed in 2012.

Over 800 people lost their jobs when the Shreveport Operations factory closed its doors, which once employed over 3,000 workers at the height of the plant’s production. This is welcome news for the many who were disappointed when the factory closed, but some are still skeptical about Elio Motors’ claims, as well as the marketability of the strange little three-wheeler.

There’s no denying that CEO Paul Elio is a man of vision and ambition, going to great lengths to see his project realized. Many others believe in the company too, as Elio Motors has already secured tens of thousands of pre-orders for their new vehicle. In August alone, over 6,000 people reserved their own model for when it arrives next year.

Production was initially delayed due to a lack of funding, but things are now moving forward. Elio Motors is currently selling off un-needed equipment from the GM plant, which should earn the company millions of dollars in capital. Furthermore, Paul Elio has applied for a $185 million loan from the Energy Department, and recently stated that the application process is going well.



Despite the three-wheeler’s odd looks, it is hard to argue the economy of the small car. Boasting 49 miles per gallon for city driving and 84mpg highway, the fuel efficiency of Elio’s vehicle is unrivaled. Also attractive is the price, coming in at just $6,800.

But perhaps most importantly for the people of Caddo Parish, Paul Elio believes that over 10,000 jobs will be created as a result of his project through the company’s factory and supply network. The entrepreneur also noted that many of the auto-workers who lost their jobs in 2012 are now unemployed or underemployed but still know how to make cars, and will be welcome back at the Shreveport plant.




Article here

Thanks for posting, Charlie G. Just maybe Amir Heydari did a little more research and has done a better job of presenting his information than in the past. :-) Z

 

[Jambe]

I love your optimism, I'm an optimistic person myself. It just looks realistically that if they slowly ramp up to 500 cars per day by the end of the 3rd month and 1000 cars per day by the end of the 6th month, it would be March 2016 when they get to 60,000 units.

Jeff, I may be mistaken as I don't follow production estimates closely, but I think that should read...

"It just looks realistically that if they slowly ramp up to 250 cars per day by the end of the 3rd month and 500 cars per day by the end of the 6th month...."

 

[ks6c]

If I remember right, base industry, things like mining and smelting and manufacturing, represents less than 5% of regional income in a fully mature local economy. That is to say, if you suddenly hire 1500 workers, the local economy will eventually expand by 30,000 jobs(if same wages), so long as other base industries are not hurt by competition for resources or reduction of efficiencies.

The same kind of thing must happen related to money saved. If every Elio driver in the US saves an average of $200 per month, there will be an expansion of spending money but also other economic expansion related to that spending.

Let's suggest that 5million elio-Owners save $100/mo and that the resulting expansion is 80% or about 4times, that's $2,000,000,000 in economic expansion per month! or $24 Billion per year. Something to think about.

We need an open minded government economist to think about that. (oops, inherent double oxymoron for both open AND thinking)

A related subject is called "the velocity of money", which is an attempt to measure how many times a dollar is spent and re-spent in a given time period. It can be used to imply how robust or confident an economy is at a point in time (high velocity>lots of transactions>confidence vs low velocity>lots of savings(hoarding)>low confidence) and you often see it as the basis for analysis the of economic impact of new industry/convention business/sports franchises coming to town and the justification for taxpayer funds to be used in support - "for every dollar spent by tourists in town, that has a multiplier of "X" for the local economy".

Velocity peaked at almost 11 in 2008 and has fallen almost by half to the end of 2013.

I question savings on gas driving an economic expansion, though. Savings in that sense would only mean money spent on one thing (gas) being spent on another (beer!). Spending is spending and velocity isn't dependent on the actual goods purchased. In fact (sorry for this downer), money previously spent on gas would all have to be spent on beer for velocity to remain unchanged - if any was diverted to personal savings for retirement, that would actually slow things down.

 

[Smitty901]

Accounting term Opportunity cost. Every thing you spend on cost you the Opportunity to do something else. Cash not spent on gas will be spent on ,food,lodge other tangibles. In the long run much better for us all.
Opportunity cost should be factored into every purchase to determine the true effect.