Why Does It Cost So Much...

[3wheelin]

....for automakers to develop new models? I used the same title from autoblog article. And it says car companies spend enormous amounts developing new models. The price tag to develope new vehicle starts around 1 billion. According to John Wolkonowicz, senior auto analyst for North America at IHS Global, "It can be as much as 6 billion if it's an all-new car on all-new platform with an all-new engine and an all-new transmission and nothing carrying over from the old model". And this is from an established automaker so in relation to a newcomer EM who have to start from scratch, the money they now need might exceed half a billion for a "not so simple after all" ELIO! Paul Elio coming up with a price tag so low that drove most if not all of us to reserve on one or more and think he can pull it off is the trademark of a good salesman. I can only blame ME for not doing my homework. Half a car so half the price was so convincing TO ME at the time and it almost make sense from PE's point of view and of course helping him to succeed in this awesome idea of a 3wheeler is just too good to pass up. It's been 10 years (correct me if I'm wrong) and 5 prototypes later (feel free to correct me) EM is nowhere near where they're suppose to be with more prototypes to build and more money needed to start production. Reality can't be denied and the sooner we wake up to it, the easier it is to accept it. Just my 2 cents worth.

 

[imageon]

In reality I hope to pick mine up at the plant near the end of 2018.
If not I will then get a Honda Civic coupe Certified used car. And blow it off.
MK

 

[Samalross]

In reality I hope to pick mine up at the plant near the end of 2018.
If not I will then get a Honda Civic coupe Certified used car. And blow it off.
MK

If you are near Canada go up and buy a new Nissan Micra or GM Spark for $7400 US. I bought vehicles going the other way and it was an easy process.

 

[3wheelin]

In reality I hope to pick mine up at the plant near the end of 2018.
If not I will then get a Honda Civic coupe Certified used car. And blow it off.
MK

I'll see you there when it happens!

 

[Rickb]

The reality is Arcimoto and Electra Meccanica are developing a new vehicle for far less than a $1 Billion or far less than $141 Million. Both of those new startups have driveable, tested prototypes, managed to move into production facilities the end of 2016 and are close to delivering affordable Signature Series SRKs and SOLOs. EMV has even opened 2 SOLO Store locations. Both startups have asked potential customers to show support by asking for simple refundable reservations only. Admirable and fiscally responsible business model that seems to be working, although I'm still waiting for the official order form for either vehicle.

 

[3wheelin]

If you are near Canada go up and buy a new Nissan Micra or GM Spark for $7400 US. I bought vehicles going the other way and it was an easy process.

Thanks for the idea Samalross! Can you tell us more about the process like US inspections to drive in our streets, import tax etc.

 

[3wheelin]

The reality is Arcimoto and Electra Meccanica are developing a new vehicle for far less than a $1 Billion or far less than $141 Million. Both of those new startups have driveable, tested prototypes, managed to move into production facilities the end of 2016 and are close to delivering affordable Signature Series SRKs and SOLOs. EMV has even opened 2 SOLO Store locations. Both startups have asked potential customers to show support by asking for simple refundable reservations only. Admirable and fiscally responsible business model that seems to be working, although I'm still waiting for the official order form for either vehicle.

They are definitely defying the odds Rickb! They sure know what they're doing and managing their funds wisely to be in this position. It'll be a sigh of relief when Eletra Meccanica or Arcimoto hands over the keys to their first customers because then we'll know everything's possible...and that includes our beloved ELIO! Go all 3wheelers!

 

[Ty]

The reality is Arcimoto and Electra Meccanica are developing a new vehicle for far less than a $1 Billion or far less than $141 Million. Both of those new startups have driveable, tested prototypes, managed to move into production facilities the end of 2016 and are close to delivering affordable Signature Series SRKs and SOLOs. EMV has even opened 2 SOLO Store locations. Both startups have asked potential customers to show support by asking for simple refundable reservations only. Admirable and fiscally responsible business model that seems to be working, although I'm still waiting for the official order form for either vehicle.

Good point. I wonder if the billion dollar estimate includes a lot of testing that Electra Meccanica and Arcimoto (and Elio) aren't doing. It must. It can't cost in the billions to build a car. Once you add in all the testing, certifications, and such, it may get a little more pricy. My question for the future will be - if my autonomous Tesla hits someone, who is at fault? I wasn't driving! So, will auto manufactures have to factor in life-time insurance for every car manufactured? I mean, VW ended up paying a lot for what it's employees did... Toyota paid a huge amount for "unintended acceleration" AFTER it was proven not at fault. Hopefully, Elio will be far into production before such worries surface.

 

[Samalross]

Thanks for the idea Samalross! Can you tell us more about the process like US inspections to drive in our streets, import tax etc.

The difference is the cars have DRL and a third point for a baby seat, everything else is the same. I think that the cars are made in Mexico, so should be duty free.

 

[3wheelin]

Good point. I wonder if the billion dollar estimate includes a lot of testing that Electra Meccanica and Arcimoto (and Elio) aren't doing. It must. It can't cost in the billions to build a car. Once you add in all the testing, certifications, and such, it may get a little more pricy. My question for the future will be - if my autonomous Tesla hits someone, who is at fault? I wasn't driving! So, will auto manufactures have to factor in life-time insurance for every car manufactured? I mean, VW ended up paying a lot for what it's employees did... Toyota paid a huge amount for "unintended acceleration" AFTER it was proven not at fault. Hopefully, Elio will be far into production before such worries surface.

Glad you chimed in Ty. With regards to your "future" autonomous Tesla hitting someone, that's easy, you're not at fault. You're IN the car but you're not AT the wheels. The more serious questions is, how much will it figure out in car insurance premium???