Why Not License Out The Production Of The Elio?

[CrimsonEclipse]

I recent saw a business model of some component manufacturers that focused on design and sold the manufacturing rights to companies all around the world and was paid a licensing fee per unit.

So why not do the same with the Elio?

Sell the base design but allow the local companies in each region to add and remove features relevant to the local market and government and simply collect the licensing fee?

There are countries across the world that need a small, simple vehicle that's gas powered.
An African manufacturer might install a small diesel. (petrol is less available)
An Indi manufacturer might super simplify the E with roll down windows and minimal sound system and a door on the opposite (or both) side(s).
A Chinese manufacturer might require a future EV system (hint hint)
From an investor point of view, China produces the car for a couple of years, then sells to the USA as a foot in the door for their future automotive offerings.

Production is hard. Maybe it's time to change strategies.

CE

 

[BaldGuy]

Paul wants to prove that he can build this in North America despite the high cost of labor, etc.

Please visit the official site and learn about the Elio story.
https://www.eliomotors.com/features/#the-4-musts

 

[3wheelin]

I recent saw a business model of some component manufacturers that focused on design and sold the manufacturing rights to companies all around the world and was paid a licensing fee per unit.

So why not do the same with the Elio?

Sell the base design but allow the local companies in each region to add and remove features relevant to the local market and government and simply collect the licensing fee?

There are countries across the world that need a small, simple vehicle that's gas powered.
An African manufacturer might install a small diesel. (petrol is less available)
An Indi manufacturer might super simplify the E with roll down windows and minimal sound system and a door on the opposite (or both) side(s).
A Chinese manufacturer might require a future EV system (hint hint)
From an investor point of view, China produces the car for a couple of years, then sells to the USA as a foot in the door for their future automotive offerings.

Production is hard. Maybe it's time to change strategies.

CE

Production is easy, finding the money it ain't.

 

[3wheelin]

Paul wants to prove that he can build this in North America despite the high cost of labor, etc.

Please visit the official site and learn about the Elio story.
https://www.eliomotors.com/features/#the-4-musts

This is how PE's legacy reads "The man that could but wouldn't!"

 

[Rickb]

Production is easy, finding the money it ain't.

It not about finding the money, it’s about what Paul did with the found money received over a decade, and obviously the money wasn’t used efficiently for R&D.

 

[3wheelin]

It not about finding the money, it’s about what Paul did with the found money received over a decade, and obviously the money wasn’t used efficiently for R&D.

....yap, and the REST OF THE MONEY would've have found him if he had the production ready ELIO to impress the VCs. Sigh....

 

[RSchneider]

Elio could license it out but they need something to license. As of now, they need to complete the car and have it production ready. Once they do that, then they would have to start a group to go do a world tour to different companies and see who would like to pay Elio for the right to make the car. What Elio would have to do is make up about a dozen Elios with various changes as to demonstrate what could be done for each market. If a manufacturer or coach builder decides that it would work in their market, then Elio would custom design the product for their market and then let them build/sell it. All while Elio collects the checks.

Honestly, I can't see what other market would be interested in it but there's got to be a few. I'd think that Australia would be the first ones to hit up. As for China, forget it. They could just build their own copy of an Elio and have it on the road in 12 months. No reason to pay Elio licensing for easily copied technology/design. Plus they already have an in to the US market, it's called Volvo Automobiles, which is owned by Geeley.

 

[Watashiwah]

“As for China, forget it. They could just build their own copy of an Elio and have it on the road in 12 months. No reason to pay Elio licensing for easily copied technology/design. Plus they already have an in to the US market, it's called Volvo Automobiles, which is owned by Geeley.“
—————————-
Easy to ‘copy’ for the Chinese, and easy to copy for anybody. Elio Motors has no patents, components, or options that can’t be readily duplicated. The IAV engine which, I believe, was envisioned and commissioned specifically to qualify for the elusive ATVM loan is probably best forgotten and shelved. That leaves any power plant and transaxle that’ll fit. The instrumention and most everything in the clip could truly be ‘off the shelf’ by redesigning the body to accommodate existing lights etc.

Who wants the debt and baggage? With a new design, those three to five obsolete and unfinished prototypes, all the CAD dwgs; the entire Elio Motors corporate thumbdrive becomes just an interesting history.

Edit: Even if there was a remote possibility of someone else stupid enough to step in it, it remains to be seen if Paul’s apparent reluctance to step aside is because of ego, or if it’s because it might be a nightmare to get all (and open to scrutiny) the refundable and non refundable reservations found, counted, transferred, etc. It certainly behooves the EM principals to ‘let it die on the vine’ and ultimately be so worthless that there is nothing to sell (attach to, pursue, litigate, defend), anyhow.

 

[RSchneider]

Edit: Even if there was a remote possibility of someone else stupid enough to step in it, it remains to be seen if Paul’s apparent reluctance to step aside is because of ego, or if it’s because it might be a nightmare to get all (and open to scrutiny) the refundable and non refundable reservations found, counted, transferred, etc. It certainly behooves the EM principals to ‘let it die on the vine’ and ultimately be so worthless that there is nothing to sell (attach to, pursue, litigate, defend), anyhow.

My guess is that there has never been anyone else to step in from day one. It was just wishful thinking by many because they wanted to believe that people were waiting in line to fund Elio because it was just the right thing to do to save America and whatever else. In the end, it's just business.

 

[Rickb]

It’s not just business. EM (Elio Marketing) was a highly successful marketing venture making millions for the principle players over nearly a decade. The SEC rules, should never have been changed back to allow small investors to throw money at a company with no product to sell. That’s not a viable business and/or safe investment. Those high risk investments should be left to the VC Market Place not mom’s and pop’s with emotional ties betting on a dream. With that said, I have recently invested in a new vehicle startup under the assumption that I will lose it all and not looking for gain. Only my opinion and admit to having been mistaken a couple times in the past.