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News From Shreveport

Discussion in 'In The News' started by Ty, Sep 28, 2016.

  1. Ty

    Ty Elio Addict

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    6 years in Shreveport here. I get what you are saying but remember - GM was forced to close that particular plant by the US Government as part of bankruptcy requirements.
     
  2. RSchneider

    RSchneider Elio Addict

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    I was in that plant years ago and it was obvious that GM stuck the high margin trucks in there because it was not the most efficient facility they had. Thus, over the last few years before they closed it completely, it was getting a bit run down. One other issue was that it was far away from many suppliers. That just added to the cost. One of the main reasons why Toyota is expanding again in Huntsville is because that area is closer to suppliers and many have set up shop there (i.e. machine shops and training facilities). The area of north AL, TN, GA, KY, western SC and southern IN has become the place to be for suppliers and a good workforce.

    It will be a challenge for Elio to work out of Shreveport due to the location and the workforce there. I still think that they need to be in the hotbed of auto manufacturing since they are planning to operate just like an auto plant and use automotive suppliers.

    Then there's this article that shows that LA is not even on the list when it comes to auto manufacturers and if you can't make it on the short list, you got a problem, especially when your neighboring states are.
    http://www.thenewsstar.com/story/news/2017/08/15/why-did-la-miss-cut-auto-plant/566562001/
     
  3. Johnny Acree

    Johnny Acree Elio Addict

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    Well, yes and no. All US. GM. assets were included in bankruptcy reorganizations .
    The "new GM" is formed from the purchase of the desirable assets of "old GM"
     
  4. RSchneider

    RSchneider Elio Addict

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    That is true. At least LA and the Caddo Parish did provide incentives to Elio Motors to get them to move there. They did so because Elio was to start hiring 1500 people starting the 2nd quarter of 2014. I know that it'll 4 years late for them to start hiring people but Elio did tell them over and over again it was just a targeted date and there was no guarantee that he would ever hire anyone.
     
  5. KenK

    KenK Elio Addict

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  6. Coss

    Coss Moderator Staff Member Moderator

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    Indiana is a union area, I don't think Elio ever wanted to deal with the union, that's why they went south.
     
  7. RSchneider

    RSchneider Elio Addict

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    You mean the Shreveport Isuzu plant (I like how people refer to that plant as a Hummer plant but never Isuzu).

    There's number of reasons why the Shreveport Isuzu plant was never considered:
    1. Hyundai Glovis and Elio Motors lease out most of the plant and Elio got all of the good stuff and took out a loan on all of the equipment.
    2. Plant was not up for sale but for lease.
    3. SF motors wanted to purchase a plant.
    4. Indiana is much more aggressive in getting car plants because they learned from the Subaru/Toyota plant that if they play ball, the manufacturers will come.
    5. Indiana is much closer to suppliers.
    6. The plant was still in operation and thus not shuttered like the Shreveport plant (plant in much better condition and still a turn key operation).

    This deal has been in the works since 2016 and then was finalized in 2017. The original $30M in retooling has been upgraded to $160M, so someone (i.e. Chinese) is ready to spend some money to build electric cars in the US and they are serious. I've been watching this for a while and they (SF Motors must have got an influx of cash because it sort of went quiet for about 6 months). Deals like these look like to me, will be the next revolution of the car industry.
     
    wizard of ahs and BaldGuy like this.
  8. Ty

    Ty Elio Addict

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    GM owned the plant. We built very few Isuzus there. They had different hoods than the S-10 did and those hoods came in these large wooden boxes the looked like breading grounds for awful spiders. Not that I hung around long enough to see them open the crates up or anything. I primarily worked further along the line.
     
  9. mkiker2089

    mkiker2089 Elio Aficionado

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    Somehow I've missed SF Motors until now. I'll have to keep an eye on that. I wish they had a tiny car in mind however. Unless I'm misjudging scale the SF5 will be a mid to full size car and the 7 even bigger.
     

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