Elio
Leave it to an economic downturn to inspire a nation’s entrepreneurial spirit. In such times, schemes abound to provide a troubled public with transportation options that fit their newly minimalist needs. In the OPEC days of 1974 we were treated to the CitiCar, basically an enclosed golf cart powered by electricity, as well as a cobbled together 3-wheeler called the Dale, offered by a cobbled together lady named Liz Carmichael. The Jimmy Carter-inspired malaise of 1979 gave us the 1-seat, 1-door, 1-headlight FreeWay that shared its DNA with a snowmobile, which made sense since it hailed from Minnesota. And the Dot.com bust of 2000 gave us the Sparrow, a one passenger, electric powered personal transportation module that looked like something a super-sized hermit crab might try to make a home of if a Sparrow driver forgot to latch the door. And so it should come as no surprise that the Great Recession would bring forth its own version of motorized personal transport in its most basic form. In this case it was a wild looking little runabout called the Elio.
From the depths of 2009, former stock broker, NYC cab driver, and now automotive entrepreneur, Paul Elio, sprung forth to enthusiastically announce a revolutionary new low priced, fuel efficient 3-wheeler that he named after himself. Expected to cost just $6,800, the Elio E1 was just over 13 feet long and 67 inches wide. That is about the same dimensions as a Honda Fit. The revolutionary part seems to have been that while a Fit holds 4 adults and most of their gear, an Elio accommodates 2 people seated in tandem with barely enough space left over for a pizza and a six-pack.
Mr. Elio claimed his car would get 84mpg. That is, it would once a new 3-cylinder engine being designed by German engineering firm IAV was finished. In the meantime, the prototype E1’s power comes by way of a 900cc, 55hp 3-banger plucked from a used Geo Metro. Also claimed were acceleration times of 0-60 in 11 seconds and a top speed of 107mph. These seemed plausible, given the car’s 1350lb curb weight…and terrifying if you ever saw a Reliant Robin 3-wheeler getting toyed with in the British comedy, Mr. Bean.
What was less plausible was the E1’s proposed 2012 launch date. Indeed, Phoenix-based Elio Motors was not able to secure a production location until 2013. This would be a shuttered GM plant in Shreveport, LA, that last produced Chevy S-10 pickups before its former owner filed for bankruptcy in 2008. The building was acquired with an assist from the state of Louisiana after Elio had promised to bring back 1500 manufacturing jobs. In Elon Musk-style optimism, Paul Elio announced that production would commence the following year.
Production did not commence the following year, although a campaign to raise cash by taking non-refundable customer orders did. Deposits ranged from $100-$1000, with that amount to be discounted from the purchase price upon delivery. Despite the fact that the date of said delivery was still a mystery, and the Elio’s price tag had now jumped to nearly $7,500, there were 65,000 brave souls who jumped at a chance to, as Elio promotional videos proclaimed, make their neighbors green with “Elio Envy.” The company’s new target date would be late-2016. This was later pushed back to 2017.
As 2017 arrived, it was the Elio depositors who were acquiring a greenish twinge. But while no cars were yet being built, it was still a big year for Elio Motors. They announced a private IPO with the goal of raising $100 million. This would be a down payment on the $486 million the company projected was now needed to get operations running. If the IPO was successful, they said, production could commence 76 week later…or October 2019… at the earliest.
Despite the delays, pitfalls and shortfalls, a handful of cars had been built over the years. There were at least three working E1s for evaluation and safety testing, plus a couple of pretty props for photo ops.
The year 2018 arrived and Elio Motors was still alive and breathing, though by now it might have been company officials that were looking a bit green around the gills. In April, Elio announced that in order to raise much needed funds it was starting its own cryptocurrency called ElioCoins. It is not clear how many ElioCoins were created, or how much funds they raised. Perhaps that was the crypto part.
At about the same time, Paul Elio managed to secure a $2.5 million cash infusion from the online liquidator, Overstock.com. Overstock’s management was said to have been looking at synergies with the Elio car and their business model. People following the Elio saga were still trying to figure out what the hell Overstock was talking about, when in August of that year Elio Motors filed a document with the SEC listing their cash on hand at $208,000 and payables of about $42 million. It appears Overstock may have under estimated Elio’s propensity to over promise and under deliver. As for that 2.5 mil? Over and out.
As of this writing Elio Motors appears to still exist as an entity. Whether or not that entity is viable is less clear. A check of the official website has an “On Vacation” vibe to it, and the last post on the official Facebook page was from April 2019.
On the other hand, according to a January 2020 report in the Phoenix Business Journal, local consumer crusader, Joe Ducey, managed to get a $250 deposit refunded to at least one of those early believers. The report didn’t say if said refund was payable in ElioCoins.
Copyright@2020 by Mal Pearson
Sources and Further Reading
Jalopnik.com, October 16, 2014. 6 Things that Could Kill Elio…, by Freddy Hernandez
BingBong.com, February 4, 2015. 40,000 Paid Thousands for an Elio Car…, by Jason Torchinsky
TheNewsWheel.com, April 4, 2017. What the Heck Happened to the Elio?, by Catherine Hiles
Automotive News May 14, 2018, No Launch in Sight for Elio, by Stephanie Hernandez McGavin
Wikipedia.com/Elio Motors