Happy Friday Elio’ers! February 27th is one of those weird days that doesn’t have a lot associated with it historically. Holidays? None really unless you want to count Polar Bear Day – International. Notable births? No one really jumps out other that the possibility of over 100 Elio reservation holders (39,900 reservation holders/365 days in a year)! It is the 58th day of the year (yawn) in the dead of winter, and even gets out done by February 28th (the last day of a short month) and the 29th, the leap year show off!
Today we are going to spice up the day with a topic that is important to us and our fans and seems to have a few people flummoxed as to the logic and communication behind it. That topic is our $6,800* retail selling price.
First, we have set four targets, called “must haves” that drive the entire Elio project: 84 MPG highway, $6,800, Safe, and made in America. These are the guiding principles for the Elio. Any time we talk about modifying a part or adding something to the Elio, the part has to fit in these four criteria. Does everything fit into these criteria, no, so those items go into a “bubble list” for future consideration or straight to the options list. The final decision always must come back to whether it meets these four criteria.
We have communicated the must haves from the inception of Elio Motors and have openly brought you along for the journey.
Most people realize that it is rare for an existing automotive manufacturer to discuss pricing on a new model, much less a start-up company revealing the price of a new vehicle at an early stage – but we are different. We focus on transparency in our communications with our fans and future owners. Our $6,800 retail price was based on a thorough cost and pricing evaluation that involved hundreds of knowledgeable folks that have deep understanding of vehicle engineering, design, supply and manufacturing. We have discussed how the low price is possible on a well-equipped vehicle (power windows and door lock, AM/FM stereo, heating and A/C, ABS, traction control etc.) in a number of interviews and articles as well as our website. Here are the highlights:
- Less “Stuff” – We are half as wide as a car which leads to less material. At +/- 1250 lbs. we are roughly half the weight of a passenger car. Simply: Less costs less. There are also other advantages of less being more in: one door versus four, three wheels versus four (tire, suspension, braking system) etc.
- Re-engineering existing parts for maximum efficiency.
- Our business model – 2 transmissions and 7 colors is what we will produce at our Shreveport plant. Simple, high volume manufacturing to drive down price and inventory.
This is a very ambitious number, we get that, and we are committed to doing everything we can to reach it. We know that the Elio is compelling for many reasons and the price point is big. The market is swamped with viable alternatives once you get over the $11,000/$12,000 range. We don’t want to compete with vehicles in that zone, so we are staying in our own, much needed price range. Paul has openly stated in a couple of interviews that we are currently trending to a retail selling price of $7,300. $7,300 is not the estimated selling price, it is the current estimate of where we are as of today. The selling price is still targeted at $6,800. Paul went on to say that we have not completed all of the pricing quotes and negotiating with our suppliers and that we can reach our goal. To be sure we are all on the same page and everyone understands this point – $6,800 is still the price point for the Elio. This is yet another great example of transparency and how we keep everyone informed and up to date.
We are not wavering in our pursuit of the four musts and keeping the growing Elio nation informed along the journey. We appreciate the support and passion of our followers and a look forward to the day that the first Elio rolls off the production line.
This week in the Preview Tour:
Today – March 1 – Atlanta, Georgia – Atlanta Motor Speedway for the NASCAR Sprint Cup Series – Fan Zone
Thank you for your continued support!