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2/5/2015 - Ksla News 12 Investigation: Elio Could Face Fines With Further Production Delays

JEBar

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WilliamH

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While reading this I was reminded to do my every 3 or 4 day search for Elio in the news and came up with this ............
http://watchdog.org/199317/idaho-law-restrict-sale-innovative-car/
I was aware of the PEP Boys association, but the NAPA association in the last paragraph is a new one.
Doses any one have information on the NAPA issue?
 

JEBar

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While reading this I was reminded to do my every 3 or 4 day search for Elio in the news and came up with this ............
http://watchdog.org/199317/idaho-law-restrict-sale-innovative-car/
I was aware of the PEP Boys association, but the NAPA association in the last paragraph is a new one.
Doses any one have information on the NAPA issue?

interesting article and as you note, most interesting last sentence .... this article makes clear that Ohio isn't the only state with sales restrictions .... with this being the case, I'm looking forward to what EM comes up with as a Plan B
 

Ekh

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interesting article and as you note, most interesting last sentence .... this article makes clear that Ohio isn't the only state with sales restrictions .... with this being the case, I'm looking forward to what EM comes up with as a Plan B
I found the language of the article interesting. The ITD spokesperson said that if you buy a vehicle out of state, you have no protection IN IDAHO. But what he didn't say is you do have protection under the laws of the state where the transaction took place.

There's nothing in, say, Ohio law to prohibit a state resident from buying a car elsewhere -- elsewhere, in this case, most likely being Kentucky -- and bringing it into the state. That's the work-around, but it's not a particularly good one. Fine for me, I live 1/2 hour from KY, but not so good for most folks.

As I see it, the dealer requirement is purely protectionism for state car dealers. You do need warranty service, financing and registration assistance, and you do need repair shops, but I can't think of a single other reason why as a consumer you really need a dealer. And those services could be provided in other ways.

Elio truly has to address these state law problems. The potential market loss is too large to ignore.
 

John Painter

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I found the language of the article interesting. The ITD spokesperson said that if you buy a vehicle out of state, you have no protection IN IDAHO. But what he didn't say is you do have protection under the laws of the state where the transaction took place.

There's nothing in, say, Ohio law to prohibit a state resident from buying a car elsewhere -- elsewhere, in this case, most likely being Kentucky -- and bringing it into the state. That's the work-around, but it's not a particularly good one. Fine for me, I live 1/2 hour from KY, but not so good for most folks.

As I see it, the dealer requirement is purely protectionism for state car dealers. You do need warranty service, financing and registration assistance, and you do need repair shops, but I can't think of a single other reason why as a consumer you really need a dealer. And those services could be provided in other ways.

Elio truly has to address these state law problems. The potential market loss is too large to ignore.
Yup, I think a big part of why auto dealerships arose like they did was out of necessity of distribution back in the early 1900's. We live in a very different world now where distribution direct from the manufacturer is very doable. I do wonder now with Elio taking a Tesla approach for a vehicle classified as motorcycle (infinitely more affordable than a Tesla), if it will start to chip away at the current manufacturer/dealer system. Especially with how Elio is approaching service of their vehicle.
 

JEBar

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There's nothing in, say, Ohio law to prohibit a state resident from buying a car elsewhere -- elsewhere, in this case, most likely being Kentucky -- and bringing it into the state. That's the work-around, but it's not a particularly good one. Fine for me, I live 1/2 hour from KY, but not so good for most folks.

Elio truly has to address these state law problems. The potential market loss is too large to ignore.

because they have no competition, I don't know how much market EM will lose .... with Pep Boys along with others (on a case by case basis), providing warranty service the only time it would be a major inconvenience for folks in Ohio and other such states is the drive out of state to buy the Elio .... after that, unless they just want to go to an Elio dealership, I can't see much of a problem
 

outsydthebox

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I found the language of the article interesting. The ITD spokesperson said that if you buy a vehicle out of state, you have no protection IN IDAHO. But what he didn't say is you do have protection under the laws of the state where the transaction took place.

There's nothing in, say, Ohio law to prohibit a state resident from buying a car elsewhere -- elsewhere, in this case, most likely being Kentucky -- and bringing it into the state. That's the work-around, but it's not a particularly good one. Fine for me, I live 1/2 hour from KY, but not so good for most folks.

As I see it, the dealer requirement is purely protectionism for state car dealers. You do need warranty service, financing and registration assistance, and you do need repair shops, but I can't think of a single other reason why as a consumer you really need a dealer. And those services could be provided in other ways.

Elio truly has to address these state law problems. The potential market loss is too large to ignore.

I think, very little time will pass before "the mighty dollar" (or loss of it) causes these "problem states" to change their own laws. :)
 

RUCRAYZE

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because they have no competition, I don't know how much market EM will lose .... with Pep Boys along with others (on a case by case basis), providing warranty service the only time it would be a major inconvenience for folks in Ohio and other such states is the drive out of state to buy the Elio .... after that, unless they just want to go to an Elio dealership, I can't see much of a problem
Maybe you will purchase it on Amazon, two days later!!......
 

goofyone

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It sounds like some people think that EM is not aware of these legal issues regarding sales in some states however if you ask Elio Government Affairs VP Joel Sheltrown you find out he is aware of these issues. Joel, and his team, are well aware of many kinds of legal issues which could affect EM in various states beyond simply helmet and motorcycle license issues as Joel maintains a master spreadsheet, and other documents, where he and his team keep track of many issues including the issues which are not so obvious to most of us.

Just like many other aspects of EM's business what Joel and EM have done is simply prioritize where they concentrate their limited money and time right now. The fact is that the helmet, registration, and motorcycle endorsement issues are the biggest obstructions to EM sales at this point as these even affect online reservation sales. These issues also do not face much opposition when they are introduced which generally allows them to be passed through state legislatures with a minimum of fuss both from legislators and outside groups.

The next step, once the issues preventing easy registration and use of the vehicles in most or all states is resolved, will be to tackle issues such as retail sales locations in certain states. This is certain to be much more problematic as there will be well funded and well politically connected groups which will be in opposition to any such changes in law.

This is where EM will be helped in these battles by the fact that by the time EM tackles the retail sales issue their inexpensive and fuel efficient vehicles should already be in the process of being delivered to reservations holders throughout the country and even within the states which do not allow direct retails sales. Unlike the high end Tesla which is seen by most as a rich mans car it will be much harder for legislators to stand against the low priced and fuel efficient Elio especially when anyone will be able to simply drive across the state line and buy one or go online and order one including having it delivered to them. If I were EM I would actually waive the home delivery charge in states where the law bans direct retails sales of this vehicle as this would both encourage more sales in those states and also highlight the fact that the laws are out of date, ineffective, and do not reflect the realities of the modern world.
 
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