After Job Losses Local Lawmaker Wants Elio Investigation

[raptor213]

With less than 24-hours advance notice, the Louisiana Motor Vehicle Commission postponed the hearing set for tomorrow, now scheduled for July 10, 2017.

Elio Motors was a no-show for a private pre-hearing opportunity in January, claiming they were never notified of the event. Then an initial public hearing before the Commission was scheduled for March 13, 2017, but ten days beforehand, it was delayed to May 8, 2017. Now with less than one day of notice, it's further pushed back to July 10, 2017.

"There's no immediate word from the commission or Elio Motors on why the hearing May 8 has been postponed.

"An Elio Motors spokesman had confirmed May 2 that Joel Sheltrown, the company's vice president of governmental affairs, would represent Elio Motors at a commission meeting at 10 a.m. May 8."

They received word so late that Joel either likely has already traveled to Shreveport for no apparent reason, or received word in time to cancel his travel plans but is likely out the airfare, hotel accommodations and rental car at this point.

This meeting slated to be held before the Louisiana Motor Vehicle Commission - whenever it eventually takes place - is related to an inquiry/investigation into Elio Motors' business practice of accepting reservation deposits:

"Up for discussion by the commission is the company's practice of accepting 'binding reservations' to hold customers' place in line for its three-wheel vehicle.

"The commission is concerned that a binding reservation is the same thing as a pre-sale, and Elio Motors is not licensed to sell vehicles in Louisiana.

"Plus, the state's franchise law prohibits manufacturers from selling directly to customers. Instead, they are required to sell through dealers.

"Elio Motors could be fined thousands of dollars if the company is found to have violated state law."

This appears to be completely separate and unrelated from the political witch hunt spearheaded by Cedric Glover concerning the promised jobs at the prior GM plant that haven't materialized, which would be a breach of contract subject to one-time financial penalties.

http://m.ksla.com/ksla/db_350562/contentdetail.htm?contentguid=I54Dq8dk

 

[pistonboy]

Elio Motors was a no-show for a private pre-hearing opportunity in January, claiming they were never notified of the event. Then an initial public hearing before the Commission was scheduled for March 13, 2017, but ten days beforehand, it was delayed to May 8, 2017. Now with less than one day of notice, it's further pushed back to July 10, 2017.

I guess this is how to maximize media coverage: Keep calling hearings and keep postponing them.

 

[Elio Amazed]

This appears to be completely separate and unrelated from the political witch hunt spearheaded by Cedric Glover concerning the promised jobs at the prior GM plant that haven't materialized, which would be a breach of contract subject to one-time financial penalties.
http://m.ksla.com/ksla/db_350562/contentdetail.htm?contentguid=I54Dq8dk

There is no possibility of breach of contract or failure to abide by any agreement by SBP/IRG possible until December of 2018.
That's according to the terms of the agreement EM made with Caddo Parish's IDB. Like it or not, the Parish has no choice but to live with it.

EM, on the other hand faces fines of $5,000 per job for each and every job that it fails to produce up to a total of 1500 by July 1st 2017...
According to the terms of the agreement EM made with RACER TRUST and CH Capital when RACER sold plant equipment to EM.
And again, neither Glover, IDB, nor Caddo Parish has any say in, or has anything what-so-ever to do with, that contract.

Unless someone finds that some political palm greasing or other impropriety went on, the Parish will just have to wait it out.

Hmmm. "Will just have to wait it out." Boy does that have a familiar ring to it.

The issue the state of LA seems to have with the reservation holders' binding agreements is a whole different kettle.
I think that the only reservations and binding agreements affected would be the ones involving LA residents.
Even then, because Elio's headquarters was/is in Arizona, LA may not have a foot to stand on.

 

[W. WIllie]

Read "Louisiana State Legislature RS32-1254" for possible info if you like.
Interesting.

 

[raptor213]

Related note: one of the proposals to be voted upon at Elio Motors' upcoming annual shareholders' meeting is the adoption of a plan to incorporate in Delaware.

 

[Watashiwah]

Related note: one of the proposals to be voted upon at Elio Motors' upcoming annual shareholders' meeting is the adoption of a plan to incorporate in Delaware.

Generally it's a smart move to incorporate in Delaware; this late in the game tho, it just looks like a 'damage control' kneejerk dodge. EM shoulda done it at the beginning.

 

[Frim]

And praise all that you hold holy that he did. Can you imagine some of our more recent (or current) president(s) as kings?

(Back on topic)
I knew when I sent the money there was a chance I might get nothing but a cool T-Shirt, a pair of headphones my daughter loves, and a bumper sticker that my wife still won't let me put on her Orange Tacoma (despite the fact that it would look totally rad!!!!)

We just have to wait and see, but from what I can see, they are sure putting a heck of a lot of work into making what would have to be trumped up engineering changes if the Elio is a scam - I have a real hard time believing that it's really all make-believe given the level of detail and effort to put out what they are putting out. It would be ton's easier to just start a religion if they wanted to scam people, and then they wouldn't have to produce anything material, ever.

Maybe it'll get made, maybe it won't. Whether it does or doesn't, I just can't believe that they aren't trying their little hearts out.

I agree that it would be much easier to start a new religion. The testimony to that is the number of people that flock to mega churches that can provide only promises of rewards that cannot be delivered. Planning and producing is a much harder task than selling the concept. IMHO

 

[Ty]

Ty... Racer Trust did not buy the building from IBP. Nor did they rent anything to EM. You've got it backwards. Racer sold the property to Caddo Parish for $17M who then made their IDB responsible for it. The IDB in turn leased the building and property to Stu's IRG who in turn entered into a sub-lease agreement with EM.

http://www.shreveporttimes.com/stor...ing-general-motors-shreveport-plant/91179046/

I said it was still early... sorry about that. Didn't mean to sow poor information!

 

[Frim]

Soon as I hear Mr. Glover's occupation is a politician I devalued his comments by 95 %. The only objective of a politician is to get reelected. Grandstanding is necessary. Name calling, outright lying misleading comments are the lifeblood of politicians.

Crawl back into your hole.

While I agree with 95% of your evaluation of politicians, It is far to early to judge the effectiveness of Mr. Glover. I would not judge him on eloquence or presentation. For the past 20 years I have worked for a man with a high school education whose brief association with formal English occurred in rural Canada. He has managed and supervised the progress of our company as it grew from a two car garage to the multimillion dollar business that we now own (Avion/Avtask.com). I say, give Mr. Glover a camera and send him back to the Elio facility. His report will be self-serving but more probably more informative that some of the blogs we have been served.

 

[Elio Amazed]

Read "Louisiana State Legislature RS32-1254" for possible info if you like.
Interesting.

Thanks Willie.

It's still inconclusive. IMO, the outcome of that license to do business issue is dependent on whether the courts find that...
The agreements were made in LA even though they were done via the internet and were supposedly generated from Arizona.
Although, RS32-1254 has a clause that says that to even advertise anything car-sales/lease in LA you need a license TDB in LA.

Begs the question of "Will the LA government force ISPs to censor out internet vehicle ads by mfgs that have no license TDB in LA?"
Or will they put the responsibility on the mfg to selectively "black out" their ads in LA? What the heck. Whole countries have done similar things.

As far as the other (dealership) issue... There's the above plus the question of, "Does a reservation and/or binding agreement to purchase...
Actually constitute a sale when no vehicle is guaranteed by the mfg and no vehicle was delivered or was even manufactured yet?

In my mind, no. And... What if EM does not complete, and never had any intention of completing, those particular sales...
(namely by definition... delivering the LA reservation/binding agreement holders' vehicles) physically in LA?

I suggest that because reservation holders in several states have been faced with the possibility...
Of having to take delivery of their Elio in states adjacent to their own for some time now.

I"m sure EM will have to have lawyers that they presently can't afford working long hours on this.
And IMO, if the LA judicial system leans at all, it will probably lean the way of a LA bias.
EM may even have to appeal to a higher court to get a fair interpretation.

Lots of questions... No clear answers yet.