A new automotive company called Elio Motors will be moving into General Motors old Louisiana plant to produce three-wheeled vehicles to be sold at an affordable price.
The deal was revealed on Jan. 3 by Elio who stated that the plant will be used to produce two-seat vehicles that will average 65 mpg. The vehicle will be sold for approximately $6,800 when production begins sometime in mid-2014 according to the Associated Press.
"We can't wait to begin our journey in Louisiana," Paul Elio, CEO of Elio Motors Inc., said in a press statement.
Click here to see more photos of the vehicle.
The Phoenix-based company stated that they are planning on hiring 1,500 workers by late 2015 to work on vehicle production. The Shreveport plant is Elio's first manufacturing location according to the Associated Press. The plant use to build pickup trucks and Hummer vehicles and was closed down this past Aug.
Stuart Lichter, an industrial developer, will be purchasing the entire plant in partnership with Elio. The automotive company stated that they will use around a quarter of the 4-million-square-foot plant for vehicle production. Lichter is hoping to lease the rest of the plant to other tenants.
Louisiana reportedly offered a package of tax breaks to Elio Motors that will include a yearly payroll rebate of 13 percent for the first 10 years of plant operations according to the Associated Press. The payroll tax break could reach around $9 million annually if the company does create 1,500 jobs if each salary averages $47,700 a year.
"After the loss of GM, we made a commitment to the people of northwest Louisiana that we would not only pursue possible alternative uses for the old GM facility, but we would also aggressively pursue new projects in the region that would create new job opportunities," Governor Bobby Jindal said in a press statement.
The company's first vehicle has been taking a lot of heat lately for its appearance and for only having three wheels. Under federal vehicle safety standards, it's technically considered a motorcycle because it only has three wheels according to Elio's website.
"They're not a big blip on anybody's radar screen that I'm aware of," said John O'Dell, a green car analyst for Edmunds.com. "Do not call them cars, because they're not."
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