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250,000 Units Per Year ?

Jeff Porter

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For me, it's easier to speak in specific examples rather than general terms. It's too easy for me to make incorrect assumptions from general terms.

Let's do a specific example. Let's say production starts Sept. 15, 2015. It is possible that the 500 vehicles per day rate will be reached by approximately Dec. 15, 2015. During the ramp-up time for that first 3 months of production, about 14,400 vehicles total will have been produced. During that 3-month initial period of production, there are about 65 work days. If these numbers look incorrect, feel free to correct them. :-)

These numbers are based on what Paul Elio has stated as goals. The goals are backed up as feasible by those with experience and knowledge on this forum.

If all is going well, then the 4th-6th months could see a ramp-up that gets to 1000 vehicles per day by the end of the 6th month, again if there is sufficient demand. This would be roughly 130 work days in 6 months. During the ramp-up for the first 6 months, about 61,300 vehicles will have been produced.

One would have to assume that all is going well for Elio Motors, for these numbers to happen. All the necessary parts are present and correct. There are no natural disasters affecting supply chains or the plant itself. Insert any other delay reason here. Any sort of forseen or unforseen delay would reduce the total number of vehicles produced during production ramp-up. For our sanity and happiness, it might be best for us to assume that delays will occur, starting with Sept 15 as a production start.

If you put yourself in the CEO chair for Elio Motors, you see there are around 35,000 reservations by end of Sept 2014 (i.e. right now), and based on the above prediction, you reach that number of vehicles with about 20 work weeks of production. I'd be a bit nervous about my plant creating hundreds of cars per day during week 21 and I'm not sure if we have buyers.

It's easy to say "build them and folks will buy them", but these aren't $10 widgets. Demand really REALLY has to be there.

In this specific example, I believe I've talked myself into the idea that a good number for a reservation shut-down would be a projection for the first 6-months of production, which is 61,000.
 

Elio1

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Labor, plain and simple. Average wage of a Chinese factory worker in 2014 is $1.36 per hour. I would argue "quality" 20 years ago but YOU even have something in your current vehicle that was made in China, no matter what it is unless you made it yourself. Hyundai (S. Korea) produces one of the highest quality vehicles today and is backed with their legendary 10-Yr / 100k mile warrenty that no US manufacturer would dream of giving. Ford, GM and Chrysler all almost collapsed in the 70'ies and 80'ies due to poor quality and if you look at trustworthy sources like Consumer Reports, they still fall behind in quality. Just the names Honda and Toyota make most people think "quality" just by their name and reputation. When they make them (and they will), $5k may be a little low but people will choose based on the same way they choose a regular car. Quality, MPG, insurance, any other number of things that make us buy what we do. I have 2 Toyotas and a Ford F-150 (the most american made vehicle there is at 75%) and I'm impressed with the quality improvements Ford has made.
The avg. wage in China may be $1.36, but S. Korea isn't China. Hyundai saw major improvements in the quality of their vehicles, after realizing that they needed to outsource some of their workforce by employing experienced & qualified candidates from the western world (Europe). Cheaper labor doesn't always mean sustained quality.
Yeah, there could be some components in my car, that might've been imported from China, at a fraction of what it would cost in the states, but I've noticed the materials tend to wear out quicker with a shorter lifespan, but make it up by being cheap to replace.
 

LockMD

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I too own, Japan & American, Nissan & Chevy. Part of Paul Elio's vision is to put America back to work. If my choice today were between American or foreign made 3 wheel auto cycle, I'd pick made in America!:D

Currently have 2 Chevys and a Dodge but yes I have had Jap cars in the past.....
 
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