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After Job Losses Local Lawmaker Wants Elio Investigation

Lawrence G.

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THIS ARTICLE WAS CREATED BY Jalopnik.com

This is real, not the standard BS kicked out by EM.

Lawmaker Wants An Investigation Into Elio Motors Deal


Ryan Felton


The last time we checked up on Elio Motors, the automaker with hopes of producing a weird three-wheeled street car with a ridiculously low selling point, it was staring down a $123 million deficit with only about $100,000 in the bank. But it hasn’t built a single car yet. So a lawmaker in Louisiana, which facilitated a deal for Elio to setup shop in a shuttered General Motors plant, is calling for an investigation into why Elio was chosen over over two separate manufacturers.


Elio Motors’ Future Looks Doubtful With $100,000 In The Bank And A $123 Million Deficit
Elio Motors, the company that keeps delaying its three-wheeler street car with a price so cheap…Read more

According to KTBS in Louisiana, Louisiana representative Cedric Glover wants the state legislature to subpoena parties involved in the Elio deal to answer questions about why the start-up was chosen over Land Rover and Japanese manufacturer Daikin. From KTBS:

“All it takes is the agreement and the support of both Chairman Carmody and the Speaker of the House to give us the authority to do that,” said Glover.

On May 9th, Glover wants to question, under oath, the deal makers who let the chronically delayed Elio Motors into Shreveport’s former GM plant, including former Louisiana Director of Economic Development Stephen Moret, two members of Racer Trust - the government program created to find new uses for the old GM plants after the company filed bankruptcy and billionaire investor Stuart Lichter, who got the plant.

“For the folks at Racer Trust to say to the people in this community that the best that we can do is Elio, and to see the opportunities that have been lost and still being lost that to me is a crime,” added Glover.

There’s a lot here, and it’s worth checking out KTBS’s report in full, but the upshot is: Glover’s bothered by how Lichter, the investor, ended up with the plant through a convoluted real estate transaction. The problem, Glover says, is Lichter in turn leased the factory again to Elio, where he’s a majority shareholder.

“That’s a crime,” Glover told the news station.

It’s a weird story, for sure, about as weird as Elio’s car looks. If you know more about what’s going on here, drop me a line at ryan.felton@jalopnik.com, or reach me via Signal here.
 

Sethodine

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Nevermind that the "$123 million deficit" line is a complete lie. That is not "debt" as people commonly interpret it; that is simply the amount of money that EM has spent up to this point without having recieved a return on their investment in the form of selling a product. It is not $123 million borrowed that it owes to banks; a large portion of that $123mil is from selling reservation deposits, selling plant equipment, selling stock, etc. that was then spent on engineering, rent, and so on.
 

booboo

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The last time we checked up on Elio Motors, the automaker with hopes of producing a weird three-wheeled street car with a ridiculously low selling point*, it was staring down a $123 million deficit** with only about $100,000 in the bank. But it hasn’t built a single car*** yet.
* Not if they can make it for 6,500 and sell it for 7,500.
**See Sethodines comment above.
*** It is not a car, it is an Autocycle.
 

3wheelin

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I would only worry if they're doing something illegal, otherwise LET THEM INVESTIGATE! Instead of getting all defensive of this latest news, if EM needs to answer to this, it'll be public and the truth we all seek of where they stand will come out! We all need answers, right???? Because when you think you know something, you're wrong!:D
 

TMOSteel

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Sailor Dog

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Wanted to thank everyone for all the well wishes...I'm definitely much better, no longer having to 'sleep' in a sitting position...never knew that being horizontal could be such a luxurious experience or that a deep breath could be so euphoric... if I can convince all of the wonderful people on here of ONE thing it would be...get the pneumonia vaccine!!! Life is beautiful and I've never felt more willing to wait patiently for our Elio!:car::angel:
 

Elio Amazed

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Been knocking on heaven's door for almost a month with pneumonia but felt a need to respond to the latest news stories. Since when does my private property have to be only rented to people with the highest bid or interest. If my preference is to serve only American interests or say I chose to rent only to the US veterans at half of the market rate with out any other preferential treatment, that is my prerogative. We just elected a president on the same America first principle. My point being...Stu owns the Shreveport factory... It is his private property... He can lease it to whom he damn well pleases. Sounds like a patriotic and profitable proposition to me...especially when I see that oil has more than doubled from $20 something to over $52! Elio is a thing of beauty in the estimation of some of the greatest auto designers in US history. Designed for the HOV lane like a motorcycle but with better MPG, climate control and greater safety. So what's the deal? Elio is not for everyone...but I for one (at my advanced age) want something in the middle of the risk continuum from a motorcycle to an automobile. And only Elio Motors is providing this! I am not the only one that gets this. So all you doubting Thomas'...just watch... Elio is about to hit the big time!
Kinda blows your whole post but... Stu DOES NOT OWN the factory. Period.

Get well soon.
 

Elio Amazed

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Elio is headquartered in Phoenix Arizona and this over weight politician that was mayor, now a representative has had harsh words for Elio to gather attention for himself. I agree with you that they have no basis other than their rederic, but just maybe we can start getting a clearer picture on what is going on. The SEC report would help, and maybe that will be released before the May hearing in Louisiana.
Over weight? Now we're calling people names?
 
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