How Crazy is Paul Elio?

Many LEED professionals are seemingly compelled to live and breathe an eco-friendly lifestyle, prompting them to seek out the latest and greatest when it comes to sustainable technologies. So, when a new product comes along that promises to help us scratch that itch, it is only human to want to make it part of our compulsion. Eco-friendly vehicles are one of these things.

I drive a Mini Cooper, which I love. I like that it gets pretty good gas mileage and that it's small and super fun to drive. So, I've been reading about the proposed three-wheeled Elio vehicle and thinking it would be awesome... If it actually works. (Note: I subsequently conducted a lengthy interview with Mr. Elio about the new Elio vehicle, entrepreneurship and the environment... you can read that interview here.)

Big Idea, Big Promises

The new Elio three wheeled car bridges the gap between motorcycle and automobile. It touts a seemingly unbelievable 84 MPG highway, with a potential range of 672 miles. At a mere $6,800 per vehicle (yes, that’s for the entire vehicle) it seems almost like an impulse buy... something that, in a moment of terrible weakness, you could put entirely on your credit card.

Indeed, if the price is to be believed, it would cost less than other "affordable luxuries", such as a brand new Luminor Panerai from Costco or that nice used Rolex you've been eyeing at Central Watch in Grand Central Station...

So yes, it's a crazy idea. And that's why I like it... Because if it wasn't for stuff like this, life might be very boring. After all, probably my favorite Steve Jobs quote of all time is about how ordinary people can make their mark in life:

"Life can be much broader once you discover one simple fact, and that is - everything around you that you call life, was made up by people that were no smarter than you. And you can change it, you can influence it, you can build your own things that other people can use."

But is the Elio really the revolutionary method of transportation the founder, Paul Elio, would have us believe? I have tried to contact the company, but it hasn't been easy... There's literally no phone number anywhere, and I have received only an automated response to inquiries through the company's website. When I asked for a phone number through the company's Facebook page, I was told to that a toll free number would be released "soon", and for now to email [email protected].

So, one thing is clear about my feelings for Elio Motors... there's a major disconnect between emotion and reality. The entrepreneur in me wants Elio to succeed, but my B.S. meter is also telling me that, at the very least, any car company that lacks an easy way to access a human representative, should be viewed with a significant amount of skepticism. (**Update: I did receive an email response from someone at Elio this evening letting me know that they will have someone call me.)

More Info About the Elio

The aptly named Elio Motors is the brainchild of Paul Elio. The story goes that during a recent spike in gas prices, Mr. Elio became fed up and decided to do something about it. He wanted to create a car that was fun to drive, affordable and economical. Here’s the available info about the Elio concept:

• Three wheels (two in front, one rear)
• Seats two in tandem (one in front, one behind)
• 8 gallon tank gets 84 mpg highway/49 mpg city
• Will be available with 5-speed manual or automatic transmission
• Tops out at 100mph and offers a 672 mile range

In the various videos available online, Mr. Elio is confident and full of energy. He appears to be a classic entrepreneur hoping to change the world with his moonshot project, while taking his share of beatings along the way. And he's taken a few already.

There was the almost embarrassing Elio prototype that appeared on the streets of New York City last summer - less than a year before production of the real deal was expected to start. The car was akin to a "back yard project" sporting an engine borrowed from a Geo Metro and missing promised items such as power windows and air conditioning. The New York Times’ Jim Motavalii and Benjamin Preston gave it a tough review.

Shortly after, blogger Jo Borras released a damning analysis of Elio Motors' financial forecast, in which he criticized their plan of jumping from zero sales in 2013 to 63,000+ vehicles sold in 2014. He wrote:

“68,333 units is 2210 more units than Mini sold in 2012, despite a strong, experienced dealer group, a compelling ad presence, and the Mini being a generally good looking, practical car...”

It's worth noting that since these initial reviews, the Elio's launch has been pushed back to 2015. OK, but you're thinking, "Yeah, so maybe Paul Elio is a little aggressive in his projections, but this is a really cool concept. Is it really that crazy?"

Elio is Actually a Very Cheap Motorcycle

Elio is technically a motorcycle, not a car. And, according to Consumer Reports, in at least 20 states, drivers will be required to wear a helmet in the vehicle, despite the steel roll cage that fully encapsulates the driver and passenger. Elio Motors' website clearly states that the vehicle is a motorcycle in the company's FAQ:

Question: Is Elio a car or a motorcycle?
Answer: According to the Federal Motor Vehicle Safety Standards (FMVSS) “Motorcycle” means a motor vehicle with motive power having a seat or saddle for the use of the rider and designed to travel on not more than three wheels in contact with the ground. So if it is less than four wheels it is a motorcycle. But what do you see when you look at the Elio? Fully enclosed, power windows, wiper blades, steering wheel, gas and brake pedals… you be the judge.

So, yes, we can be the judge all we want... but we may end up speaking to a judge when we get pulled over for not driving with a helmet.

Also, as far as motorcycles go, Elio is a very inexpensive one. According to the New York Times, the average price of a new motorcycle in 2007 was $12,304, so Elio is only about half that. Based on this comparison, the initial price of the Elio doesn't seem to make sense, and even less so when adding up all the costs of the various parts included in even the least expensive compact cars. Indeed, according to Popular Mechanics, certain items such as composite HID headlamps, air conditioning and common features such as ABS, if included, could add up to as much as 25% of the price of the Elio itself.

But these parts could be much pricier for Elio unless the company buys in bulk. In reporting on the demise of Venture Vehicles, which attempted to produce a very similar looking three wheeled, all electric car, Green Tech Media's Michael Kanellos reported that one contributing factor in the death of the "VentureOne" was that many parts manufacturers had simply stopped making parts for small suppliers. The same article goes on to say that one of the lead investors in Venture Vehicles believed that instead of the $50 million the company had raised, Venture Vehicles needed more like $100 million, having vastly underestimated the costs required to get a new car company off the ground. And the VentureOne was going to be priced at around $20,000.

Of course, when the Yugo came out, it cost less than the Elio ($4,500) and went on to sell roughly 800,000 units... So maybe it's possible.

All in all, I’d say there’s a lot to consider before laying your cash on the line for an Elio reservation. While the promise of a vehicle that gets 84mpg is truly awe-inspiring for those of us rooting for environmentalism and green initiatives, there’s still much to know about the viability of this possibly too-futuristic vehicle.