Automobile startup plans a line of super-small cars with novel payment plan

Ultra-small car start-up hopes to start production in June 2014

When start-up Elio Motors agreed to buy the 1.8-million-square-foot former General Motors plant near Shreveport, La., in January, founder Paul Elio’s plan to produce an ultra-small car with room for one passenger in front and one in back drew instant skepticism.

Elio understands. He acknowledged that most auto start-ups fail.

But Elio Motors, which is conducting product development and marketing work with partners in Michigan, will be the exception, the General Motors Institute (now Kettering University) graduate said.

The secret to beating the odds, he said, is a unique business model. For people who don’t want to pay up front for the $6,800 car, which has two front wheels and one back wheel, Elio plans to give away cars to people who sign up for a credit card and agree to use it to pay for their gas. But there’s a catch.

By Nathan Bomey

Full Story: http://www.freep.com/article/20130714/BUSINESS0101/307140051/Elio-Motors-Paul-Elio-RACER-GM