Elio Motors, The Next Big Thing?!!...

[MetroMPG]

Originally Posted by NeilBlanchard

This is the USA - what is the typical ratio of manual-to-automatic shift cars are typically sold?

I've read: about 7% in 2012. In the US.

But also seen as low as ~4%

[NeilBlanchard]

So, even if Elio sells 10-15% manual shift cars, they can subsidize the loss leader price fairly easily.

[Arragonis]

Originally Posted by freebeard

Because of what happened to Preston Tucker?

Please read "In Search of Stupidity" to understand why this example is so wrong.

[Arragonis]

Originally Posted by NeilBlanchard

So, even if Elio sells 10-15% manual shift cars, they can subsidize the loss leader price fairly easily.

Care to share the model you base this on ?

[Xist]

Unless they put in an inefficient "sporty" manual transmission and an automatic with the gears that the manual should have, I just wonder who would say "Only 14.7% more for two percent less work? Why do they even offer the manual?"

What kind of MPG difference would you expect Elio manual versus automatic?

[NeilBlanchard]

Elio knows their costs. I do not. All I am saying is they have not told us what the auto will add to the price, so they can use some of that premium to cover their losses on the manual, if there is any.

A huge number of American drivers cannot even drive a manual, and many others who can, but do not want to.

[Michael Moore]

Reinventing the wheel (or engine) seems a dumb move to me. Designing and building an engine manufacturing plant will add a huge amount of time and money to the start-up costs. If a major auto manufacturer is willing to sell them engines at a reasonable price I can't imagine how they wouldn't save money in the short run, and not going broke in the first year or two is definitely short run.

They wouldn't even need to go to an automotive engine manufacturer. There must be companies that make heavy equipment, tractor or other engines that would have the infrastructure and knowledge to build an engine to spec. And there are probably a number of smaller international firms -- Seat, Kia, Tata, etc that would be thrilled to get a hefty order.

Buying-in an existing motor that has already gone through all the EPA/EU certification process has got to save a huge amount of time and money.

cheers,
Michael

[ME_Andy]

How many suppliers could build 50k+ engines a year for them? Not very many, I think. I know they intended to use a Metro engine originally, but there wasn't enough production capacity... so they would have to build new tooling from scratch.

Since they had to produce new tooling anyway, they decided to go ahead and build a specialized engine. Smart move, in my opinion-- but the delay really sucks. I want my Elio now.

[Arragonis]

Surely the best smart move would be to design the car to be flexible enough to use different engines - that way you could start with a Metro unit, or a Mitsubishi, Toyota etc. engine. Then when newer units come along - e.g. the 1.1 Kia Diesel or maybe a FIAT Twin Air - those could be used too. Also as an owner if it breaks you could pick up parts for one of those units quite easily to fix it. Unless the Elio volumes are really going to be very high you aren't likely to find specialist bits for them so easily, or cheaply.

Morgan has been around for 104 years and hasn't made their own engine at all. Their cars cost 3-4 times as much as these Elio things too.

[NeilBlanchard]

I hope we see the P5 soon, so we can discuss tangible things. And I hope they name their vehicle, too.