Elio Motors has purchased a former General Motors assembly plant near Shreveport, Louisiana. Elio—which produces fuel efficient three wheeled cars that can go at 84 mpg on a highway—will begin production at this new facility in mid-2014 and is speculated to hire 1,500 employees by 2015.
For those unaware, the Elio retails for a mere $6,800 and features three airbags, power windows and air conditioning, two seats, a central driving position, front wheel drive, 60 mpg average, and a three-year 36,000-mile warranty. What’s more, a preliminary test gives the vehicle a 5-star safety rating.
Reuters writes:
Elio, founded in 2008, will build its three-wheeled vehicles in the 1.8 million-square-foot factory that was built in 1981 and most recently expanded in 2002. The property also includes a paint shop, powerhouse and wastewater treatment facility, rail spur and 530 acres of land.
Elio said it expects to use about 1 million of the more than 3 million square feet available for its manufacturing operations.
Industrial developer Stuart Lichter, who has acquired other former GM sites, will buy the 530-acre Shreveport site in conjunction with Elio and lease portions to other tenants, state officials said. Lichter is president of Los Angeles-based Industrial Realty Group.
Elio will receive an incentive package from Louisiana Economic Development, Louisiana officials said. The Caddo Parish Commission also is negotiating potential incentives.
I believe in America. I believe in American labor. I believe in entrepreneurial vision. I believe in American made components. I believe in American made prosperity. I believe in American manufacturing. I believe in what Paul Elio is attempting to accomplish in Shreveport, Louisiana .
I wish him the best, but as Paul Elio says, wishes don’t get the job done, so I’m sending in my reservation for the transportation of the future! American action will surely help this man succeed.
Doing some elementary calculations, one finds that the 84MPG Elio emits 3.7 ounces CO2 per mile, while the Tesla Model S is 11 ounces per mile, highway.
City Elio 6 ounces, Tesla Model S 9.5 ounces. As to effectivess of Federal $7500
Tesla subsidy, on a per subsidy dollar spent, the Elio would reduce carbon emissions 30 to 45 times more than the Tesla Model S, which costs 11 to 14 times more. Oil reduction per dollar spent is between 5.5 and 7.5 times greater if spent subsidizing the Elio rather than the Model S. The Model S pays no roads taxes, despite it 4700 pounds doing many times the damage of the 1200 pound Elio. Spending tax dollars on the Tesla rather than the Elio is not only grossly unfair in terms of income inequality, but unbelievably stupid on a cost-benefit basis.
The sad thing is there is no counter argument to your conclusion that this is unfair. Its sad because it persists. It feels like policy makers live on a different planet. Just to be clear a vehicle that weighs 4x as much does much more than 4x the damage. Damage potential scales in an nonlinear fashion. I bet giving subsidies to scooters and motorbike buyers would be a better use of tax dollars than subsidizing a status luxury good like Tesla models.