Momentum V161

[Coss]

Elio Motors Momentum v161

Believe it or not, there is an idea that every American can get behind. While we can seem hopelessly politically divided, members of every party can endorse making American-made products that are purchased by Americans.

*MSRP excludes destination/delivery charges, taxes, title, registration, and options/installation.

Certain statements in this email including, but not limited to, statements related to anticipated commencement of commercial production, targeted pricing and performance goals, and statements that otherwise relate to future periods are forward-looking statements. These statements involve risks and uncertainties, which are described in more detail in the Company’s periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements are made and based on information available to the Company on the date of this email. Elio Motors assumes no obligation to update the information in this email.

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[Coss]

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June 27, 2018



Believe it or not, there is an idea that every American can get behind. While we can seem hopelessly politically divided, members of every party can endorse making American-made products that are purchased by Americans. No matter your political ideology or affiliation, we can all agree that American manufacturing is vitally important. If the US manufacturing sector was recognized as its own entity, it would possess the 9th largest economy in the world. The manufacturing sector has been shrinking in recent decades, and it’s incumbent on all Americans to revive the industry. The automotive industry can usher in the next generation of American manufacturing dominance.



It should come as no surprise that the American automotive industry plays a major role in the health of the economy. Auto Alliance has found that “The automotive industry spends nearly $100 billion globally on R&D – $18 billion per year in the U.S. alone – or an average of $1,200 for research and development per vehicle. In fact, the auto industry provides 16 percent of total worldwide R&D funding for all industries.” The industry generates not only innovation in the automotive sphere but supports research and development in a host of other industries.

The automotive industry is also vitally important in terms of job creation. Approximately 4.5 percent of all American jobs are supported by the automotive industry and the industry contributes 3-3.5 percent of the total gross domestic product. The manufacture and purchase of American-made vehicles makes a substantial impact on the economy.

While almost every American would prefer to purchase a domestically made product, the data proves otherwise. Recently, the venerated automotive magazine AutoCar looked at where the best selling vehicles in America were built. Below is the top 10:

10. Toyota Corolla – Cambridge, Canada; Blue Springs, Mississippi – 308,695 units sold

9. Honda Accord – Marysville, Ohio – 322,655 units sold

8. Honda Civic – Alliston, Canada; Greensburg, Indiana; Swindon, England – 377,286 units sold

7. Honda CR-V – East Liberty, Ohio; Greensburg, Indiana; Alliston, Canada – 377,895 units sold

6. Toyota Camry – Georgetown, Kentucky; Toyota City, Japan – 387,081 units sold

5. Nissan Rogue – Smyrna, Tennessee; Kanda Town, Japan –403,465 units sold

4. Toyota RAV4 – Tahara, Japan; Woodstock, Canada – 407,594 units sold

3. Ram pickup – Warren, Michigan; Sterling Heights, Michigan; Saltillo, Mexico – 500,723 units sold

2. Chevrolet Silverado – Silao, Mexico; Fort Wayne, Indiana; Flint, Michigan; Oshawa, Canada – 585,864 units sold

1. Ford F-Series – Kansas City, Missouri; Dearborn, Michigan; Louisville, Kentucky; Avon Lake, Ohio – 896,764 units sold

As you can see from the list above, only two of the top ten American purchased vehicles are exclusively built in the United States. This is a troubling trend and one that can and needs to be quickly reversed. American automakers have increasingly produced reliable, affordable, and attractive vehicles. If American car buyers actively support and purchase American-made vehicles, we have found an issue that can help bridge the current divide.

 

[Coss]

Hmmm 7 of the top 10 are "imports"
Notice you don't see any Chevys or Ford cars on the list?
Ford and Chevy and Dodge Pickups, but none of the cars in the top ten.

 

[Made in USA]

For me it's interesting to ponder the "Made in America" perspective. It needs to be changed. You see, while a lot of the vehicles mention in the Momentums list are built in the USA, by American workers, in the end, the profits go overseas. We not only need "Made in America", but also "American Owned". I understand that American manufacturers would need to make vehicles overseas to be competitive. Its also needed to encourage foreign buyers to buy goods made in the USA. (Or at least the brand name). What we don't need is to reduce the importations and then we need to increase the exports by American owned companies.

 

[RSchneider]

Maybe Elio should do a Momentum on how many new automotive plants, expansions and jobs have been created since they have been telling us about their potential jobs creation. There's been a pretty good amount of automotive jobs creation since that announcement back in January 2013. Plus, Paul admitted that you can't find an engineer right now in Detroit. I know that every good supplier and equipment builder is running at full capacity as opposed to back in 2010 where they were laying off people and twiddling their thumbs because of no business.

Elio is not painting the whole picture.

 

[Coss]

I don't believe they can at this point in time.
But it will come out when more starts happening.
They're still hush-hush about everything, and not saying much of anything.
Something is going on, sure wish I knew at least something about what's going on.
Just have to keep asking, maybe I'll get somewhere (probably a good swift kick in the backside).

 

[mkiker2089]

Two things,

1- I really don't get all the NDAs that Elio uses. Most companies are more transparent especially during funding stages and when customers have money on the line.
2- Detroit has a bad record when it comes to making what people want. If they made great cars then the foreign market wouldn't have been able to take hold. I don't drive a Toyota because I wanted one. I wanted a Camaro but it sucks compared to the 86. Detroit is getting better but they haven't earned their respect back yet. Not by a long shot. Ford not being able to compete in the car market sums that up fairly well. I still see plenty of cars on the road, just not Fords.

Edit- I knew nothing of Toyota until the GM and Fords failed to speak to me. I have a brother who is upset. Doubly so since my car was made in Japan. He doesn't get it. I can't buy a nice car from Detroit if they don't make them.

 

[Made in USA]

The Elios design actually goes against what the American makers have been doing since at least the 1970's. Its called "planned obsolescence". The vehicles were (are) designed to have failures at certain points, usually based on distance. The dealerships then made their money on service/parts. The new EV's aren't much different. Granted, they have less moving parts, but eventually the computers and/or batteries will need to be replaced, and that's something the typical owner cannot do themselves.

The Elio, on the other hand, is designed to be easy to work on with mostly common off the shelf parts. Can you name many other vehicles that aren't trying to force you to their service centers? I can't.

 

[RSchneider]

The Elio, on the other hand, is designed to be easy to work on with mostly common off the shelf parts. Can you name many other vehicles that aren't trying to force you to their service centers? I can't.

I don't see the Elio being any different than a cheap car you can buy today (Nissan Versa, Mitsu Mirage). Their "off the shelf parts" is no different than what every other manufacturer does. They go to suppliers and then those suppliers make a variation of an existing part for the application. What Elio is telling you is something to make you warm and fuzzy inside but the reality is, it's nothing special. Elio pushed this in the early days but they went and made everything Elio specific thus unique just like everyone else does.

There are "off the shelf parts" that cars use (especially cheap ones). Things like light bulbs, wipers, fasteners, tires, A/C comp and fluids. They might even share parts within the manufacturer (i.e. wheel bearing for a Mitsu will fit another model).

 

[W. WIllie]

ELIO is trying to be a "KISS" vehicle. (Keep It SImple Stupid)