Is Elio The New Tucker?

"Justin Hughes" (justinhughes54) 06/24/2016 at 09:33 • Filed to: None

4

28

The story of the Tucker Corporation is a story of government and big business keeping the small businessman down. I first heard of it through the 1988 movie !!!error: Indecipherable SUB-paragraph formatting!!! . Recently I read Steve Lehto’s new book, !!!error: Indecipherable SUB-paragraph formatting!!! , which tells the same story but with more details and information, as well as his perspective as a lawyer on Tucker’s legal battles. Lehto also wrote !!!error: Indecipherable SUB-paragraph formatting!!! about the parallels between Tucker of the 1940s and Tesla of today. Both companies are small upstarts that bucked the system to produce futuristic cars using technology that was previously unheard of. While reading the book I thought of these similarities as well, but it wasn’t so much Tesla that came to mind as much as another small upstart company – !!!error: Indecipherable SUB-paragraph formatting!!! .

Read on Right Foot Down or continue below

The parallel may not seem obvious at first, but stay with me. First of all, it’s not a perfect parallel. The !!!error: Indecipherable SUB-paragraph formatting!!! was a revolutionary automobile for its time. It was supposed to have advanced technology such as fuel injection, disc brakes, tubeless tires, a safety windshield, padded dashboard, and integrated rollover protection. All of these are considered standard equipment today, but were unheard of in 1948. Elio also uses some advanced manufacturing techniques, but they’re not afraid of simplicity and “adding lightness” as well. I certainly wouldn’t call the Elio low-tech, but !!!error: Indecipherable SUB-paragraph formatting!!! , sitting inside the P5 prototype at !!!error: Indecipherable SUB-paragraph formatting!!! reminded me of some of the cars of the 80s and 90s I’ve owned in its simplicity. It’s no BMW, but you’re not roughing it, either. Controls are simple and easy to operate, rather than having to roam through an ocean of identical buttons to figure out how to turn the temperature down a little bit. And what better way to significantly reduce drag than by making the body less than half the width of a standard car?

Photo credit: Elio Motors

Tucker’s legal troubles were what brought the company down. The Securities and Exchange Commission accused Tucker of fraud. They believed that Tucker never intended to follow through on his bold claims of building a car at all, despite collecting a total of $27 million from stockholders, future dealers, and deposits on cars that had yet to be made. Tucker was eventually cleared of all charges, but not before the company was ruined by the legal battle. It’s no coincidence that the investigation was spurred by politicians from Michigan with close ties to Detroit, and the large automakers of the time.

Elio, on the other hand, has had no trouble with the law. They’re in compliance with SEC regulations. In fact, they’re working with the government to make their cars more legal and accessible to people. According to !!!error: Indecipherable SUB-paragraph formatting!!! , originally 42 states would’ve required a motorcycle endorsement to operate an Elio, and 36 would require a helmet. That’s because the Elio, having only three wheels, is technically a motorcycle, so motorcycle helmet and licensing laws would’ve applied. No one’s going to want to get a motorcycle license specifically to drive an Elio. I used to think Elio didn’t have a chance to succeed because of this hurdle.

!!! UNKNOWN CONTENT TYPE !!!

But Elio has worked with state legislatures to create the “autocycle” category for an enclosed vehicle that operates like a car rather than a motorcycle. At the time of this writing, 40 states will now allow you to drive an Elio with a regular driver’s license (see the blog post for a list of the 10 hold-outs), and only West Virginia requires a helmet for drivers older than 21. That’s quite impressive, but I don’t think Elio will be satisfied until they’ve converted all 50 states to their way of thinking. Given their success so far, I’d say Elio has been success not only working within the law, but getting the law changed by working with the government, not against it.

Photo credit: Hemmings

However, to date Elio has collected 54,826 deposits on cars they haven’t built yet. ( Full disclosure: One of these deposits is my own.) Like Tucker, they have not yet built a single production vehicle. They’ve built five prototypes, rather than the single “Tin Goose” that Tucker built, shown above. While Tucker initially built 50 cars (plus one that was assembled from available parts after production ended), Elio is gearing up right now to build 100 pre-production models. That’s many more than the 25 reported by !!!error: Indecipherable SUB-paragraph formatting!!! last year. That same article also reports that full production was due to begin during the first half of this year. Clearly that’s not going to happen.

History has shown that Tucker not only genuinely intended to put the Tucker 48 into full production, he was 90% ready to do so when the SEC raided and effectively shut down the factory. Similarly, the June 16 edition of Elio’s !!!error: Indecipherable SUB-paragraph formatting!!! blog shows body panels and powertrains being prepared for vehicle assembly, and the June 23 post shows !!!error: Indecipherable SUB-paragraph formatting!!! .

Photo credit: Elio Motors

But naysayers still abound, and there are reasons for that. Full production is currently scheduled to begin sometime in 2017. But that’s after projections of mid-2016, third quarter 2015, and July 2014. Various articles around the interwebs, like !!!error: Indecipherable SUB-paragraph formatting!!! and !!!error: Indecipherable SUB-paragraph formatting!!! paint the company in a rather negative light. Granted, the Gas2 article is from 2013 and primarily cites the Elio’s motorcycle classification as the reason they will fail – a reason that has been successfully addressed in most states. But Tavarish’s points in the Jalopnik article remain true – the date keeps getting pushed out, and many people who have put deposits down on the Elio are unhappy.

!!!error: Indecipherable SUB-paragraph formatting!!!

You don’t need to search any further than the independent Elio forums, or even comments on !!!error: Indecipherable SUB-paragraph formatting!!! , to see the skepticism of many would-be owners. I can see their point. If I was promised a car in 2014, hadn’t gotten it, and was told it would be at least another year before I did, I might be a bit cranky too. The issue comes down to funding. It takes a lot of money to put a car into production, often more than a company expects. With no ongoing sales to fund future production, a company can get stuck, needing to raise more money before they can continue. It’s happened to Elio, and it happened to Tucker, too.

Tucker also promised designs and features that would not end up being available on the actual car. The front fenders were supposed to turn with the wheels to aim the headlights into the corners. Instead the fenders were fixed, and the center “cyclops” light turned instead. A 589ci flat-6 motor connected to a unique torque converter transmission was supposed to go into the Tucker 48. After the engine fell far short of expectations, an engine originally built for the Bell 47 helicopter was used instead. (Can you imagine any helicopter motor meeting modern emissions standards?) A few automatic transmissions were tested, but most cars got a manual from Cord. Disc brakes, fuel injection, tubeless tires, and magnesium wheels were all dropped.

Aside from missed production dates, Elio has not gone down this path of making promises they can’t keep. (Ironically, their front fenders, though devoid of headlights, do turn with the wheels.) But they’ve certainly been hedging their bets. The Elio is now said to get “up to” 84mpg, with a price “starting at” $6,800 – two numbers that used to be expressed as absolutes. Each Elio newsletter has a disclaimer paragraph at the end discussing “forward-looking statements,” and that information is subject to change for a variety of reasons. It may sound like Elio is afraid of commitment, but they’re really just covering themselves in case circumstances change. And to their credit, fundamental features and designs of the Elio have not changed significantly since they were announced, unlike the Tucker 48. In fact, many additional features are listed as being available in their !!!error: Indecipherable SUB-paragraph formatting!!! , such as spoilers, different fenders and wheels, sound system options, and a nearly endless selection of wraps if the standard colors don’t appeal to you.

Will history repeat itself? Is the SEC preparing to raid Elio’s Arizona headquarters as the first cars come off the production line, just like they did to Tucker? I doubt it. For one thing, despite the understandable frustration of customers who have been literally waiting for years for their promised deliveries, Elio’s been aboveboard with their finances. But there are many ways to take down a car company. Just look at Tesla, who isn’t even allowed to sell their cars in some states because of dealer franchise laws prohibiting direct sales from automakers. There are reasons why there are only three – I mean, two and a half – American car manufacturers left.

Photo credit: Elio Motors - Because my wife wants a green one.

Assuming they can stay afloat long enough to actually build the cars that people have purchased, then sell more, I think Elio will survive as Tesla has – but for a different reason. That reason is the car itself. Gas is cheap and !!!error: Indecipherable SUB-paragraph formatting!!! , so 84mpg isn’t going to be a big selling feature. The Elio is small, and all anyone seems to want these days is a truck, SUV, or a V8 muscle car. Even at $6,800, most people aren’t going to want a car that you can’t throw the whole family and a whole heap of luggage into. Tesla, by building luxury sedans and SUVs, has launched a direct competitor to them, which is also what Tucker did. But the Elio appeals to a niche market, one that is not a threat to the mainstream automakers.

The problem with a niche market is that it is, by definition, small, like the Elio itself. Is it too small to support Elio? I don’t think so, and nearly 55,000 people who have joined me in putting down deposits on an Elio agree. Additionally, I can see some potential markets that Elio might not have considered. This could be a boon for enthusiasts. An Elio can be the everyday commuter car, letting us leave the track car, broken project car, or gas guzzling tow vehicle home most of the time. Parents looking to buy a first car for their kids can get a new Elio for the price of a lifted !!!error: Indecipherable SUB-paragraph formatting!!! (not a typo, the Ranger was a trim level of the F-150 back then), a !!!error: Indecipherable SUB-paragraph formatting!!! (that would be !!!error: Indecipherable SUB-paragraph formatting!!! ), or a !!!error: Indecipherable SUB-paragraph formatting!!! (don’t get me started). None of those other cars would be new or have a factory warranty. The Elio isn’t powerful enough to get into very much trouble, either with speed or with certain other activities for which the Elio’s back seat is certainly too small. Believe me – I’ve sat in one. Just sat. Nothing else.

Steve Lehto asked me to let him know my thoughts after I read his book. We swapped a few emails discussing some of the parallels and differences I’ve mentioned here. Despite having written the comparison to Tesla for Road & Track , he actually agreed with me that Elio is a better example, despite not being in the news as much. I don’t think staying out of the news is a bad thing. Preston Tucker was a great salesman, but one of his problems was selling promises he couldn’t keep. Paul Elio personally showed me around the P5 prototype at NYIAS. While he’s certainly enthusiastic about the car, he came across to me as more genuine than a salesman, and far more understated than Preston Tucker. Keeping promises and staying out of the spotlight, unlike Tucker, may help ensure Elio’s success.

!!!error: Indecipherable SUB-paragraph formatting!!!

SidewaysOnDirt still misses Bowie > Justin Hughes 06/24/2016 at 09:36

0

Tucker actually sold some cars. Still waiting for Elio to do the same. ;) I’m still rooting for them, and I think that Elio’s legit in his intentions like Tucker was, but I’m not exactly holding my breath.

Rainbow > Justin Hughes 06/24/2016 at 09:39

0

I’m confident that Elio will eventually get a real start, but I think the biggest setback after production starts will be their motorcycle classification. I’d love a cheap, economical car, but I don’t have a motorcycle license or any means of obtaining one. Unless I can take the test in the Elio itself, I’m not sure I’ll be able to get it.

Justin Hughes > SidewaysOnDirt still misses Bowie 06/24/2016 at 09:41

1

The first pre-production cars are beginning to roll down the line, so we’ll see. The big question is whether they can last long enough to go into full production and start selling the things. I hope so - I’ve got a deposit on one. :)

Justin Hughes > Rainbow 06/24/2016 at 09:43

1

In 40 states (and counting) you will NOT need a motorcycle license to drive it, despite it being registered as a motorcycle. Elio’s been getting the laws changed in their favor on this.

McMike > Justin Hughes 06/24/2016 at 09:46

0

The only difference between Elio and Tucker is that no one will make a movie about Elio.

Rainbow > Justin Hughes 06/24/2016 at 09:46

0

Oh, cool! Well, I’m definitely rooting for them, then! I just hope they add more awesome features later on.

Like air suspension that can lower the car to have like 1" clearance on the freeway, and possibly also pull the front wheels closer together. Hypermile that bitch.

Justin Hughes > McMike 06/24/2016 at 09:48

0

Good point! I like Paul Elio, but he’s not the kind of man Hollywood makes movies about. Elon Musk, on the other hand, is the perfect James Bond super villain.

Daily Drives a Dragon - One Last Lap > Justin Hughes 06/24/2016 at 09:53

0

I really wouldn't mind an Elio. Mainly because I would be perfectly happy with half the projected mileage.

Justin Hughes > Rainbow 06/24/2016 at 09:54

1

My friend Chang won a hypermile competition a few years ago by getting 118mpg out of a modified Honda CRX HF.

http://ecomodder.com/blog/20-yearol…

It might be fun to try and beat his record. He’s such a good driver I’ve never beaten him in anything across multiple disciplines! The front suspension is double wishbone with coilovers, and the rear swingarm looks like one for a sport bike. I’m sure modification will be possible. Paul Elio even has ideas for a racing series.

So yeah, lower the car, add a front spoiler (there’s a factory option for one), smooth the air around the front wheels, and drive smart. That alone may be enough.

Justin Hughes > Daily Drives a Dragon - One Last Lap 06/24/2016 at 09:55

0

My motorcycle gets half the projected mileage. It would be nice to get that year round through any kind of weather. Not to mention that when I sat in the P5 I felt like I was in the cockpit of an X-Wing fighter.

Daily Drives a Dragon - One Last Lap > Justin Hughes 06/24/2016 at 09:57

0

I honestly would love to drive a car with exposed wheels.

jariten1781 > Justin Hughes 06/24/2016 at 10:02

0

I see some parellels, but it’s not too direct. Elio is kind of a mix of Tucker (out of the box, regulatory hurdles, legit positive intent) and the Dale (unrealistic promises, funky funding, no end game).

If Elio actually gets out of the gate (I’m a major skeptic) I think they’re likely to die on the vine anyway. Small market means a couple years of production then steady state will be too low to support. Their bizzare gas card financing will likely not stand up to scrutiny so it’ll probably require unsecured personal financing or cash purchases.

Most of all, though, is that they’re going to get creamed with the death trap label...I realize they’re claiming (with all the caveats) that they’re going to have a 5 star rating. I’m still not sure how a motor(auto)cycle gets a rating, but leaving that aside, people always forget that crash test ratings are based on the mass of the vehicle. You even see it on enthusiast websites who should know better when they claim that 5* small cars are ‘safer’ than 4* pickups or whatever. The NHTSA puts it on all their official reports...direct quote: “Overall vehicle score and frontal crash ratings should ONLY be compared to other vehicles of similar size and weight”. The ONLY is in all caps in the official statement. This is because the tests assume you’re ramming into the same car. So, while an Elio on Elio wreck would be very safe, that’s not going to be true across the board. Even a 5* Elio will get demolished when hit by even things such as compacts due to the mass disparity. That’s fine too, for folks who want to take that into account in their risk calculations, but they’re advertising it essentially as ‘as safe as a car’ vs. ‘safer than a motorcycle’ and there’s a huge difference in those two. Whenever whatever the equivalent of Dateline is these days gets ahold of gruesome photos and runs an expose it’s going to cut their legs out either via loss of consumer confidence or increased regulation.

Justin Hughes > Daily Drives a Dragon - One Last Lap 06/24/2016 at 10:16

0

You’ll want the “retro” wheel and fender option, then.

random001 > Justin Hughes 06/24/2016 at 10:38

1

I am an enthusiast, and I want one. The green one, in fact.

Pixel > Justin Hughes 06/24/2016 at 10:44

2

I’m just waiting for the option to make it look like a Fusion Flea Supreme.

Justin Hughes > random001 06/24/2016 at 10:48

0

I wanted white, and then I’d stripe and decorate it up like an X-Wing fighter. But my wife vetoed that idea.

BigBlock440 > Justin Hughes 06/24/2016 at 11:02

0

I’d be surprised if they did manage to keep that $6,800 figure, solely due to the fact that inflation exists. That’s been the number thrown around for, what, 5 years now? I can’t think of much (besides gas) that isn’t more expensive now.

BarryDanger > Justin Hughes 06/24/2016 at 11:21

1

These come with a stick as standard? This would make a better commuter than the gen1 insight I was considering. I just spec’d one up over 10k and I want it.

random001 > Justin Hughes 06/24/2016 at 12:50

0

I may have to give up my Elio dream in favor of a Miata, though. Except my wife hates Miatas...

XJDano > Justin Hughes 06/24/2016 at 22:27

0

Good read. I wanted an Elio. But then this week I drove my metro with most of my work tools 3 medium sized tool boxes in it ( only driver seat) and a weeks worth of clothes (carry on bag size)

I realized I doubt I’d fit all that in an Elio.

Now if Elio made a bread wagon version, I may have another look, but I really need a truck or Van ( or even a company truck/ Van) then my DD would be my Jeep. But that’s TMI.

ranwhenparked > Justin Hughes 06/24/2016 at 23:04

1

I’d say Elio is more like the new Davis. For one thing, Tucker was a “proper” car and would have been targeted at the Upper Medium price bracket against Chrysler, Buick, Mercury, and Hudson. It had some radical engineering, but was still a “normal” car that would appeal to people that buy normal cars. The Davis, like the Elio, is an attempt to totally redefine what American consumers think of when they hear the word “car” and is also kind of the answer to a question they themselves created.

Allll > Justin Hughes 06/27/2016 at 01:41

0

How do you get a spot at the “pre-production” Elio club? Is that an in-the-know thing, or a financial decision.

Justin Hughes > Allll 06/27/2016 at 09:55

0

I have no idea. At NYIAS told me they were building 100 pre-production models for testing, but since then they’ve decided to sell them. Maybe that’s so they can say they’ve started selling cars sooner. It could also be to raise another $680,000 or so, minus deposits.

fuzzeepuppee > Justin Hughes 07/04/2016 at 08:26

0

Expect to get laughed out of your neighborhood if you actually buy one of these clownmobiles...

MrDakka > Justin Hughes 08/12/2016 at 13:28

1

If I ever get one, this is exactly what I’m going to do.

If only EssExTee could be so grossly incandescent > Justin Hughes 08/12/2016 at 14:07

1

Is Elio The New Tucker?

No b/c Tuckers are actually cool.

Justin Hughes > If only EssExTee could be so grossly incandescent 08/12/2016 at 14:12

0

Tuckers are definitely cool. No question about that.

bubblestheturtle > If only EssExTee could be so grossly incandescent 08/12/2016 at 19:52

0

No, because Tucker actually sold a product. (I don’t think Elio ever will). Although I still hope they will.