Phoenix start-up Elio Motors has reportedly pushed back production of its wacky three-wheeler again, leading to legal proceedings and a potential class action.
The company was founded in Louisiana by car enthusiast Paul Elio, who believed the world was ready for something radically new. He saw the soaring costs of vehicles and was saddened at the idea of the dissolving American dream.
His answer was to develop the Elio: an ultra-efficient, affordable, safe and sexy alternative to today’s expensive transport options. The company believes the positive impact of the Elio stretches well beyond personal ownership benefits and will generate thousands of jobs for Americans.
Debuting as a concept car at the 2015 Los Angeles motor show, the Elio was unlike anything we’ve seen before, featuring three wheels, a pair of tandem seats and a 40kW 0.9-litre three-cylinder petrol engine.
Earlier that year Elio promised that when it went on sale in June 2016, it would weigh just 550kg, hit 160km/h, average 2.8L/100km, cover up to 1100km between fill-ups and cost just $US6800 plus taxes.
At the time, Elio said more than 40,000 people had made “reservations” to buy an Elio when the trike goes on sale in the US in 2016. Production was due to commence last year at a former General Motors plant in Shreveport, Louisiana.
Although the company has started taking deposits and accrued $US17 million through small-investor crowd-funding, production has now reportedly been pushed back again to 2018.
The company apparently still needs around $US300 million more to get production rolling, and faces a deadline to create jobs or a financial penalty from RACER Trust.
According to the SEC, Elio only had $US101,317 in cash reserves and $123,212,431 in accumulated deficit as of September 30, 2016.
This is obviously concerning and customers are clearly not happy, with one customer who put a deposit on a vehicle reportedly suing the auto-maker.
A petition has also been launched to start a class-action law-suit against the company.
Which begs the question, will Elio Motors’ commitment to the American dream actually materialise? Or is it simply stuck in a nightmare it can’t wake up from?