I sure hope so for these startups. But for big automakers, I won't be surprised at all and I believed John Wolconowicz report. I tried to cut and paste the whole article but the Autoblog website won't let me do it, sorry about that. But developing cars from drawing to clay, to prototypes to actual production car and another big chunk of money goes to marketing/introducing it all over the world in all sorts of media.
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Why Does It Cost So Much...
- Thread starter 3wheelin
- Start date
Both the Solo and SRK are going through independent compliance testing and certification requirements. What's it cost an established motorcycle manufacturer to bring a new motorcycle to production? Considerably cheaper than a car.
A self driving vehicle may be proven safer than a vehicle with the typical distracted driver behind the wheel doing everything but concentrating on driving.
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booboo
Elio Addict
My 2 cents on why Elio thinks they can do it for 1/2 price.
ElioMotors has been different from the start. Not doing things like the big guys.
1. The basic design/idea was done from the start.
2. No legacy costs.
3. Farming out many parts to the puzzle, less overhead.
4. Time, as in deadlines not met. Last year's model is this years model.
ElioMotors has been different from the start. Not doing things like the big guys.
1. The basic design/idea was done from the start.
2. No legacy costs.
3. Farming out many parts to the puzzle, less overhead.
4. Time, as in deadlines not met. Last year's model is this years model.
Lil4X
Elio Addict
The bottom line involves the Elio not being an automobile. The three-wheel design sidesteps a WHOLE lot of certifications that are necessary for an automobile, making their journey to market a lot more difficult. Motorcycles (and autocycles) don't have the burden the NHTSA and EPA place on testing and certification that 4-wheelers have.
Lobbyists and lawmakers have made special provisions for three-wheelers, urban vehicles, and a few other "specialty" vehicles that have full or limited on-road capabilities. So long as these vehicles don't impinge on the sales of conventional autos, they'll continue to avoid the penalties associated with developing any new vehicle. EM has been very wise to build to the 4-wheel safety and emissions regs, despite their current "autocycle" classification. Should the major manufacturers insist that these presently waived vehicles conform to automotive standards, once established in the market, Elio won't have much of a step to meet the current or anticipated automotive requirements. They've done a lot in their design already to level the playing field.
Lobbyists and lawmakers have made special provisions for three-wheelers, urban vehicles, and a few other "specialty" vehicles that have full or limited on-road capabilities. So long as these vehicles don't impinge on the sales of conventional autos, they'll continue to avoid the penalties associated with developing any new vehicle. EM has been very wise to build to the 4-wheel safety and emissions regs, despite their current "autocycle" classification. Should the major manufacturers insist that these presently waived vehicles conform to automotive standards, once established in the market, Elio won't have much of a step to meet the current or anticipated automotive requirements. They've done a lot in their design already to level the playing field.
I hope you're right then everybody will be happy. And just to see EM succeed, I'm willing (my decision only) to pay more if they can deliver my ELIO! This is of course if they can deliver FIRST before EMV's SOLO as I can only pay for one 3wheeler!
So do you think EM's current cost estimate of 376 million enough to really get them started or should it be lower/higher? That is provided they found an angel investor.
What do you think?
Since it's not a regular car, I don't personally think it'll cost a billion but as I said in my original post, it could be 500 million or a bit more. I read ElioAmazed calculation on another thread that the 376 million does not include other expenses. EM's current cost estimate of 376 million is I believe based on "now" and it could be more by the time they find an investor/s. Nobody in here really knows when the funding will come right? Is it this year? Next year? 2 years from now? Shall I dare say half a car, half a billion... needed to produce?
Then again, what the heck do I know? 
Ty
Elio Addict
Warning - Opinion only -
I believe it won't fiscally cost Elio $346M to bring their Elios to production. I think it may take $346M if you count everything going on. That is, if you count every supplier's costs to start producing Elio parts and the price of the quantity of parts to get the Elio production line started.
If you are going to build a car on an assembly line, you can't just order, say, 100,000 gizmos and have them all delivered to the plant on day one. No. You need to order 100,000 gizmos - delivered as needed but never AFTER needed. There is a definite cost to doing that. Let's take Hyundai, for instance. They'll make seats for Elio but doing so means that they'll have to have a plan to produce seats at a rate slightly faster than Elio produces vehicles. That means they'll have to run their line just as fast. They'll have to have the personnel, parts, line capability, logistics, etc. required to do that. Before I worked at the GM plant, I worked at the Johnson Controls facility in Shreveport as an engineer balancing the seat assembly line that made the seats for the GM plant. That's ALL that plant produced. Anyway, I think Elio is counting the funds necessary to "prime the pump" when they give their $346M estimate. It's possible some of that will be taken on by suppliers who have excess capabilities. Quick example: Supplier making dash parts has excess capability on their production line. They could "reserve" that capability for Elio and then hire people as needed by increased Elio builds. There is a value to that capability and THAT value could be part of what Elio is planning for. It could be that the supplier doesn't need Elio to pay for that but could require Elio to pay for unused capability if they had another client who would try to buy that capability. I was wondering how much actual cash Elio would need to get started producing Elios. Hmm...
I believe it won't fiscally cost Elio $346M to bring their Elios to production. I think it may take $346M if you count everything going on. That is, if you count every supplier's costs to start producing Elio parts and the price of the quantity of parts to get the Elio production line started.
If you are going to build a car on an assembly line, you can't just order, say, 100,000 gizmos and have them all delivered to the plant on day one. No. You need to order 100,000 gizmos - delivered as needed but never AFTER needed. There is a definite cost to doing that. Let's take Hyundai, for instance. They'll make seats for Elio but doing so means that they'll have to have a plan to produce seats at a rate slightly faster than Elio produces vehicles. That means they'll have to run their line just as fast. They'll have to have the personnel, parts, line capability, logistics, etc. required to do that. Before I worked at the GM plant, I worked at the Johnson Controls facility in Shreveport as an engineer balancing the seat assembly line that made the seats for the GM plant. That's ALL that plant produced. Anyway, I think Elio is counting the funds necessary to "prime the pump" when they give their $346M estimate. It's possible some of that will be taken on by suppliers who have excess capabilities. Quick example: Supplier making dash parts has excess capability on their production line. They could "reserve" that capability for Elio and then hire people as needed by increased Elio builds. There is a value to that capability and THAT value could be part of what Elio is planning for. It could be that the supplier doesn't need Elio to pay for that but could require Elio to pay for unused capability if they had another client who would try to buy that capability. I was wondering how much actual cash Elio would need to get started producing Elios. Hmm...