Elio Dudes Are Smart, Aren't They?

[Inigo93]

The tidbit that makes me personally think that it's not a scam is the P4. Really. If the goal is to scam people, the P3 is all you need. Looks good (better than the P4 by many opinions). Drives around. Checkpoint met. There is no need for the P4 to run the scam. Why spend all the money associated with building the P4 when you've got everything you need to run the scam in the P3? Doesn't make sense. Ergo, Elio is legit on intent.

As for whether or not the business is viable (a totally different question, of course), time will tell.

 

[Craig]

This has been mentioned on here a number of times and I have thought about this myself and completely agree with you that the pre-order reservation system is a very smart business move. The pre-order system helps them in a number of ways. By itself it creates marketing buzz and encourages people who have already made reservations to stay tuned and tell others about Elio. It gives them a cushion between the time production starts up and new sales need to be coming in as well as getting the Elios on the road where people will see them and want one. It is also much easier to sell a new car in a new dealership if you can tell people the production line is already up and running and tens of thousands of people are already enjoying their new cars.
The pre-order reservation system also helps the business greatly from a financial perspective. 12,000x6800=81,600,000 and I suspect that number will increase greatly before production is actually set to begin. If they can hit 25,000 reservations that would equal $170 million in reservations at 6800 each. These are huge amounts of revenue set to start rolling in once you start production and begin delivering these vehicles. All that income not only allows them to pay their regular expenses (payroll, rent, utilities, part suppliers, etc...) but can also be leveraged to show potential investors that there is real demand for this vehicle so this is a business worth investing in.

How much is 25,000 credit card financed cars with no money down?
Am I missing something?

 

[mike171]

The tidbit that makes me personally think that it's not a scam is the P4. Really. If the goal is to scam people, the P3 is all you need. Looks good (better than the P4 by many opinions). Drives around. Checkpoint met. There is no need for the P4 to run the scam. Why spend all the money associated with building the P4 when you've got everything you need to run the scam in the P3? Doesn't make sense. Ergo, Elio is legit on intent.

As for whether or not the business is viable (a totally different question, of course), time will tell.

The P4 generated a bit of a spike in deposits after it was unveiled because it shows progress. If this was a scam, the P4 does make sense when you look at it this way. In order for a scam to work you must keep your prospective victims interested in your proposal. As far as the $1,000 limit on deposits. The amount is low enough to be small claims and also low enough that if the company failed, many people would not bother to pursue retribution, just simply write it off.
Now, I don't think for a moment that this is a scam. I just made a few observations. I fully believe the Elio will be a success and taking reservation deposits is a brilliant move to help secure start up funding. You can't do much better at showing the viability of your product than having thousands of pre-orders. I also feel that securing the Shreveport plant and lobbying to get helmet laws amended would be a huge waste of funds if this were a scam. I think Elio has done its homework and learned from the mistakes of others who have tried to start from scratch.

 

[Inigo93]

Yes, you need progress, but I disagree that you need the P4. Put it this way... The progress paraded before potential investors is securing the production plant and such. IE, progress towards making the P3 a reality.

 

[goofyone]

Yes, you need progress, but I disagree that you need the P4. Put it this way... The progress paraded before potential investors is securing the production plant and such. IE, progress towards making the P3 a reality.

The issue is that the P3 was never the goal of the project instead it was a step along the way to reaching their goals of a $6800, 84mpg, American built, 5-star safety rated three wheeled vehicle.

Sent from my Nexus 4 using Tapatalk

 

[Inigo93]

The issue is that the P3 was never the goal of the project instead it was a step along the way to reaching their goals of a $6800, 84mpg, American built, 5-star safety rated three wheeled vehicle.

But if you're a con artist why make that claim? Simply state that the P3 needs some tweaking for manufacturability, but otherwise you're there.

 

[goofyone]

But if you're a con artist why make that claim? Simply state that the P3 needs some tweaking for manufacturability, but otherwise you're there.

Good point.

If this were a scam why would they waste all this time and money since 2008 developing three different prototypes and hiring IAV to develop a new engine.

Sent from my Nexus 4 using Tapatalk

 

[mike171]

and furthermore.... Paul Elio already owns a successful engineering firm and doesn't seem to be hurting for money. Why would he go to this much trouble if it was just a scam?

 

[Craig]

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Paul Elio
CEO at Elio Motors, Inc.
Location
Phoenix, Arizona Area
Industry
Transportation/Trucking/Railroad
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Paul Elio's Overview
Current

• CEO at Elio Motors
• President and Founder at ESG Engineering

Past

• Design Engineer at Johnson Controls, Inc.

Education

• GMI Engineering and Management Institute (Formerly General Motors Institute)

Connections
276 connections
Paul Elio's Summary
Paul graduated from General Motors Institute & the Engineering and Management Institute (now Kettering University) in Flint, MI, Magna Cum Laude with a degree in Mechanical Engineering. With over 18 years of engineering and executive management experience, Mr. Elio has spent much of his time in the automotive space focused on technology development. Holding numerous patents related to mechanisms, Mr. Elio began his career at Johnson Controls, the global diversified technology and industrial leader, and was a founding partner of ESG Engineering, the company that became known for quickly moving ideas from concept to reality. One of ESG’s key projects was the three-wheeled vehicle now known as the Elio.

In 2008, many industry changes were quickly happening, and since ESG Engineering’s business was based primarily on new product development the company struggled to survive. Upon realizing the vast potential of the Elio, Paul created Elio Motors and began the process of fighting the challenges associated with starting a new transportation company. Adhering to four tenets throughout the development process ensured a high quality product: a) ultra-low sticker price, b) ultra-high mileage, c) 5-star rating safety benefits and, d) low risk=existing technology=no R&D.
Paul Elio's Experience
CEO
Elio Motors
Privately Held; 11-50 employees; Transportation/Trucking/Railroad industry
August 2008 – Present (5 years 8 months) Phoenix, Arizona Area
As the Chief Executive Officer of Elio Motors, Mr. Elio surrounds himself with a well-rounded team of skilled individuals that help keep the vision of the organization going strong. Mr. Elio cares about keeping jobs in America, perseverance and hard work has become a big part of Paul Elio’s life in the pursuit of this goal.
President and Founder
ESG Engineering
Privately Held; 11-50 employees; Mechanical or Industrial Engineering industry
February 1996 – Present (18 years 2 months)
ESG Engineering was an engineering consulting firm specializing in new product development. Founded by Paul Elio, ESG grew from one to 45 engineers plus support staff. The company developed a methodology for developing new products using simulation tools early in the design process. The firm was awarded 10 patents

ESG team responsible for complete design of solar dish, including wind, gravity, and seismic loading
• Developed complete seat including 5 new mechanisms for commercial vehicle client
• Developed new recliner that Toyota wanted to put on the Camry
• Developed innovative seat track that was shown at the 2004 North American International Auto

ESG is the opening case study in text book “Strategic Management of Technology and Innovation” used at Harvard and Stanford MBA programs
Design Engineer
Johnson Controls, Inc.
Public Company; 10,001+ employees; JCI; Mechanical or Industrial Engineering industry
July 1992 – February 1996 (3 years 8 months)
Paul Elio's Education
GMI Engineering and Management Institute (Formerly General Motors Institute)
Bachelor's Degree, Mechanical Engineering, Machine Design Specialty
1995
Grade: Magna Cum Lade
Activities and Societies: Founded Inventors and Industrial Entrepreneurs club