Momentum V77 - Investment Will Create Jobs, Help Em's Costs

[Coss]

Seems a little strange for a title:
Did you hear Elio Motors' latest announcement?

Elio Motors Momentum v77


Investment Will Create Jobs, Help Control Elio Motors' Costs

Americans spend quite a bit of time sitting in traffic. The average American commute is 26 minutes one way, and approximately 42 hours a year are idled away sitting in traffic jams. With all that time spent sitting, you might as well have a comfortable and safe seat in your vehicle. This week, we proudly announced that our seat manufacturing partner, Hyundai DYMOS, will set up seat manufacturing capabilities onsite at our Shreveport, Louisiana manufacturing facility. The Hyundai DYMOS investment in this production capability will help in 3 major ways: cutting costs, saving time, and creating American manufacturing jobs.

Hyundai DYMOS, started in 1994 by Hyundai Motor Group, is a respected name in the automotive industry. The company has North American locations in West Point, Georgia; San Luis Potosi, Mexico; Monterrey, Mexico; and Farmington Hills, Michigan. Now, Shreveport, Louisiana is added to that list.

Elio Motors seat ready to go into E-Series vehicle.

Hyundai DYMOS seat safety test (DYMOS stock image).

Hyundai DYMOS durability test (DYMOS stock image).

Here’s why this is important to Elio Motors, and more importantly, to our customers.

Creating Jobs:

We believe that it’s critical to revitalize American manufacturing and create manufacturing jobs. It is estimated that upwards of 1,500 will be directly employed at our Shreveport facility (video), plus an additional 1,500 jobs from the supply base, Elio Motors corporate, sales, and service once full production is underway. Plus, approximately 18,000 indirect jobs nationwide are projected to be created or sustained. As a result of Hyundai DYMOS setting up seat production in Shreveport, it is expected that even more American manufacturing jobs will be created.

Saving Time:

Having Hyundai DYMOS onsite in Shreveport will save a considerable amount of time, which is beneficial to operations at the plant and to our customers. By utilizing the same manufacturing space, we can remove the possibility of any interruption in the manufacturing of the Elio due to external factors. This way, a late delivery or a truck stuck in traffic will not hold up the assembly line.

Cutting Costs:

At Elio Motors, we are always on the lookout to find savings that we can pass along to our customers. By having Hyundai DYMOS in the same manufacturing space, we can save significantly on freight costs, which we can then pass along to Elio Motors’ customers. The more our suppliers can save, the better the cost proposition becomes for the Elio.

From the beginning of the project, four core tenets have been the driving factor behind the project: to produce a safe, fuel-efficient, affordable vehicle that is made in the United States by American workers. Hyundai DYMOS’ decision to set up production in Shreveport fits in perfectly with Elio Motors’ vision. The move allows us to continue to find savings that we can pass along to Elio Motors customers, and helps us in our mission to make a difference for Americans.

 

[Coss]

Momentum v77 page 2

* MSRP for non-refundable reservations with binding commitment only and applies only until non-refundable and refundable reservations total 65,000. Total current reservations can be seen at: eliomotors.com. 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.

 

[Coss]

Interesting comment "........By having Hyundai DYMOS in the same manufacturing space,........."
Is Dymos getting part of the plant? Sure sounds like it.

 

[KD]

Interesting comment "........By having Hyundai DYMOS in the same manufacturing space,........."
Is Dymos getting part of the plant? Sure sounds like it.

I believe, you sir, are correct.

...and is that a pallet of tires I see in the background of the Elio seat?

 

[airforceguy6]

Yes, Hyundai DYMOS is getting a space in Elio's current leased area of the plant. During the council meeting yesterday, Paul briefed the committee of this new development, and one member even asked if DYMOS is going to be subleasing the space from Elio directly or renting some of the open area not yet leased by any company. Paul didn't fully answer, but what he said sounded like DYMOS will be paying Elio for the rented space and estimated the DYMOS move to Shreveport to bring about 80 jobs.

 

[booboo]

I am thinking this is Elio's way of telling me they are working diligently on a quality autocycle so when it does come to fruition I will not be disappointed.

Bank On It: The Improved Reliability of Affordable Transportation | Trending Topics
October 28, 2016

They go by many different names, but they all share one common characteristic. A lemon, clunker, and a bucket of bolts are all antonyms for a lack of reliability, and millions of these vehicles litter American roadways. Unfortunately, it is likely that many of us have had to drive a clunker, only to spend an unnecessary amount of time on the side of the road. In past decades, even new cars had an element of unpredictability. That is, even though the vehicle was brand new, there were few assurances as to its consistent performance. Today, new cars come with virtually no surprises, because of their superior dependability. According to Auto Guide “Now that we’re a decade and a half into the 21st century, it’s basically gotten to the point where you can’t buy a bad car.” Even the most affordable new cars are reliable.

Along with reliability, several factors consistently rank as the most important to car buyers. Gas mileage, safety, and optional features are perpetually among the most cited reasons to purchase a particular vehicle. Somewhat surprisingly, however, a J.D. Power and Associates study found that reliability was the top priority for car buyers. According to J.D. Power, “For 3 consecutive years, reliability and durability are the most common reasons for selecting a particular make and model.”

American cars, in particular, have greatly improved their reliability. In the past, American cars garnered little respect and were often thought of as inferior to their imported counterparts. That reputation has largely reversed. According to NBC News “The quality of the typical new vehicle being sold in the U.S. this year is better than ever, according to a new study by J.D. Power and Associates, with improvements coming at a near-record pace. “

One of the biggest struggles in purchasing a new car is the rising prices. Per the Associated Press, “Auto prices have risen every year since the Great Recession, hitting a record average of $31,825 in December of 2015, according to J.D. Power. The average price in September was $30,862, an all-time high for the month.” While this is bad news for car buyers, the good news is that improvements have been made across the board, so even the most affordable vehicles are dependable.

There are few things more frustrating than an unreliable clunker. A daily commute is stressful enough, and constant worry that your vehicle may not get you to your destination only adds to the strain. Luckily for car buyers, vast improvements have been made in the manufacturing of new cars. Today, virtually all new vehicles are reliable, and this designation is not only limited to luxury brands. Car buyers no longer need to break the bank for peace of mind.