Elio Motors, a startup car company will be moving into the previous Northwest Louisiana General Motors plant, where plans are in place to build vehicles with three wheels that have a high fuel efficiency along with a price tag that won’t break the bank.
The deal was declared this previous week for Elio Motors to move into the plant to assemble it’s amazing looking, unusual two seater motor. The Company averages around 65 miles a gallon of fuel and when production starts in 2014 will sell for $6,800 (around £4,183).
1,500 jobs are said to be created at Elio Motors
The Ceo of the company Paul Elio had expressed his excitement about the company’s journey starting in Northwest Louisiana. The company, which is based in Phoenix has explained that 1,500 workers would be hopefully hired at the plant by 2015, the plant which once built the commercial hummer and pickup trucks is being revived to produce small, fuel efficient automobiles. This Shreveport plant will be Elio Motors first location for manufacturing.
This plant was closed last August, with General Motors handing it to the RACER trust, which took over many General Motors facilities all over the United States when the company declared bankruptcy.
Elio Motors will use 1.4 of the facility
In conjunction with Elio Motors, Stuart Lichter an Industrial developer is buying the entire plant, with Elio Motors using around a 1/4 of the 4 million square foot facility. Though they haven’t been confirmed as of yet, Lichter also has plans to lease the remaining parts of the facility to other tenants.
The deal was secured by a package of tax breaks being offered by Louisiana to Elio Motors, including an annual payroll rebate of 13% for the first decade of operations in the plant. Though the economic development of the state department did not provide estimates of what this type of payroll tax break would cost, it could easily reach $9 million yearly, provided all 1,500 jobs with an average salary of $47,700 annually, were entitled to the rebate.
It was explained that after Louisiana lost General Motors, there was a commitment and promise made to the people in the area that not only would alternative uses for the General Motors facility be sought, that also new projects would be pursued in the region ensuring opportunities for jobs.
Elio Motors first vehicle which will be shaped like an egg is said to be produced by 2014 and is described as car like with power windows, air conditioning and of course airbags. Though it is considered a motorcycle due to the fact it only has three wheels, under the standards of federal vehicle safety information provided on Elio Motors website.