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Elio Lite

Discussion in 'General Elio Discussion' started by pistonboy, Jul 13, 2019.

  1. pistonboy

    pistonboy Elio Addict

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    Elio Lite.

    Going with the new “mystery” engine has saved EM 120 million dollars in development cost and makes it easier to get the money for production (because they need less).


    What development steps can be done to reduce the amount of money needed? Which would we be willing to accept if it made the difference whether or not Elio would be produced?

    I would accept dropping the beta testing. This involves many cars for extensive field testing and I am sure is very, very expensive. I would be willing to accept the testing done by Rousch as the only testing.

    I don’t know if dropping Pep Boys would save any money or not. If it does, perhaps just give us the shop manual on a disk and offer a paper version (for fee) and let us take it to our favorite shop.

    Perhaps drop the stores for now. I am sure they are very expensive to set up. People can order on computer from home. They would normally be ordering from a computer in the store anyway.

    Perhaps take advantage of it being classified as a motorcycle and not meeting all of the same requirements that automobiles do. I would not be worried too much about safety because they have already accomplished this. Check the computer simulations. I have put my life in far greater jeopardy on my motorcycle many times.

    Also, perhaps only meeting the motorcycle emissions requirements instead of automobile standards.

    What would you be willing to accept if it made the difference between the Elio being produced or not being produced.

    Some of these would definitely make a difference in start up cost and thus make a difference in how much money EM must come up with to go into production. Some may not. Some would be only temporary, some may not.

    Many of us have expressed excitement about other three wheel vehicles which I believe have not done near the same testing as EM. Where are their computer simulations of crashes and tests by well known companies like Rousch? Have they changed helmet laws and drivers license laws of the states, or are they just riding on the coat tails of EM?

    What are your ideas?

    I am sure someone will come up with the superior-than-thou response of “I am always amazed by the number of people who . . .”
     
    Last edited: Jul 14, 2019
    larryboy, Coss and NSTG8R like this.
  2. Ty

    Ty Elio Addict

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    Interesting. I'd be okay with dropping the 3 year warranty and just fix it myself after maybe a year of warranty to iron out bugs.
    I don't see TZero or bitcoin being value added. Purchase pressed body panels from someone who already has the machines and people to do so... wherever that may come from. Stick to just assembling the Elio and let others do the welding, forming, and such. Well, Elio would still need to paint the vehicles unless they switched to some kind of pre-colored polymer...
     
  3. RSchneider

    RSchneider Elio Addict

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    I consider Elio Lite to be a stripped down version. Problem is, cheating R&D, Warranty, Service are items of people that want the Elio so bad they just want it made until the get theirs and after that, not caring if the company goes out of business. Making a less than speed out version will kill the company. We can’t risk quality, reliability and safety. This was paramount to the Elio and why people gave them money.

    Farming out the work might work but it’ll have to be in places like China. I don’t know where it could be done in North America.
     
  4. XanWolf

    XanWolf Elio Aficionado

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    Drop the target fuel economy to something in the 60 to 70 mpg range should ease a lot of things up.

    Personally, I would like to have emission options... Standard (motorcycle), "Enhanced" (automotive), and "experimental" (something that actually works or an evolving set of attempts to get something to work).

    I think the lawyers would inform them that skipping testing would weaken their position against the driver who died while trying to see how far/high the Elio could jump. Personally, I would rather just have a good warranty against design flaws found and a proactive recall/fix system. Rather than need a dedicated service, offer a sort of car repair "insurance" that is paid for the first X years. Use it at your regular garage and there would be limits to the charged rates.

    I am fine with doing the repairs myself. I would rather have a good set of service manuals/materials than a promise from any institutional garage.

    Bothering with stores when you have a backlog of over a year seems weird to me, so the stores could go for now. I figure that if you make a good enough product, you can do a few car shows for far less money and get more out of it.

    Just some ideas that pop up on the thought....
     
    ehwatt likes this.
  5. RSchneider

    RSchneider Elio Addict

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  6. RSchneider

    RSchneider Elio Addict

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    Here's what Elio has for their budget
    Production Tooling

    113.2

    Production Equipment

    166.0

    Store Fit-Up

    6.4

    Other Fixed Assets

    5.4

    Engineering Design & Development

    85.8

    Sales & Marketing

    35.9

    General & Administrative

    40.6

    Shreveport Marshaling Expense

    17.3

    Retail Store Expense

    14.4

    Principal & Interest

    15.2

    Capital Raising Costs

    30.1

    Working Capital

    0.9

    Total Uses
    $
    531.2

    So the $120M must be from ED&D, Production Tooling and Production Engine. Those three are $365M. If we subtract $120M then we got $245M. As for what could be further trimmed for the cost would be Store Fit-Up, Sales and marketing and Retail Store Expense. That is a potential of $56.7M which could be cut. That brings the total to $351.2M. How much more could be cut? We really can't cut the production equipment but more of the ED&D. Let's cut another $40M from that. Now you have $311.2M for a budget. Figuring that Elio is planning to make $1474 on average for the 65K Elios (65K/$44.1M profit margin) and they will be getting $110.5M (110,500 new reservations at $1K each non refundable) that brings the cost to get Elio going to be $156.6M. Then eliminate the warranty on the first 65K that will reduce the running costs approximately $15M. Now you have the price shaved down to $141.6. After that, forget Pep Boys and just let customers work on the Elio themselves or take it to a corner garage, that would reduce Administrative costs by about $10M. Now the total is $131.6M.

    That would be an Elio Lite and thus get it to production much sooner. Then if you can get the approximate 22K commit to buy to pay $5K (that will be applied to the car) that would reduce the cost to $21.6M. Then Elio can offer Eliocoins and use that money to fund the production of those first 22K cars. that would become Elio Superlite. Then after the 65K are built then they can fulfill the other 200K new reservations and then start with a warranty, service centers and stores. By then they Elio machine will be going.
     
    Ty likes this.
  7. Watashiwah

    Watashiwah Elio Addict

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    9680F522-5CA8-477E-86EF-EA0130ABE47E.jpeg


    Thanks to Bill Watterson
     
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