Elio Motors appealing $500K fine

John Walton
arklatexhomepage.com

SHREVEPORT – Elio Motors is appealing the fines for not having the proper licenses.

The Louisiana Motor Vehicle Commission fined Elio Motors $272,500 for not having a manufacturer’s license and another $272,500 for not having an automobile dealer’s licenses.

Elio has 60 days to get the proper licenses, or face a daily fine of $5,000.

“We were recently asked to divert resources away from our mission to meet with the Louisiana Motor Vehicle Commission. The commission, primarily made up of traditional auto dealers, ruled that Elio Motors is already a manufacturer and that we were not currently in compliance with state regulations. We do not believe the findings were in harmony with Louisiana motor vehicle laws nor in the best interest of the people of Louisiana or Elio Motors, and plan to appeal the decision” said Elio Motors CEO Paul Elio.

Elio Motors was also ordered to separate any refundable and non-refundable deposits from customers and place the refundable deposits in an escrow account.

During a news conference in May, Elio Motors CEO Paul Elio said his company is still committed to starting production on the three-wheel vehicle and creating jobs for the area,

Elio Motors needs $376-million to begin production by 2018 and says they’re sticking to that deadline.

Filings with the Securities and Exchange Commission show Elio finished 2016 with $120-thousand with cash on-hand and another $24-million deficit.

Full statement from Paul Elio:

“It is our intention at Elio Motors to make Louisiana our home. The region provides a world-class manufacturing facility and workforce with which to build our low-cost highly fuel efficient commuter vehicle. Elio Motors, our team, our blue chip suppliers and board of directors are working diligently every day on fundraising and vehicle development to move closer to production and bring jobs to the region.

We were recently asked to divert resources away from our mission to meet with the Louisiana Motor Vehicle Commission. The commission, primarily made up of traditional auto dealers, ruled that Elio Motors is already a manufacturer and that we were not currently in compliance with state regulations. We do not believe the findings were in harmony with Louisiana motor vehicle laws nor in the best interest of the people of Louisiana or Elio Motors, and plan to appeal the decision.

We remain committed to succeeding in Shreveport and will continue to work closely with all local agencies to ensure success for everyone. We look forward to creating manufacturing jobs, contributing to the economy and the tax base, to working with the commission and other local leaders and to maximize benefits to the Shreveport community.”

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