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Reinventing the Automobile: GM & Ford vs. Startup Guy

By Shlomo  Maital   



  “In the ring, weighing in at about four ounces, is Silicon Valey startup guy Paul Elio.  Facing him, weighing in at 24,382 tons, is …General Motors, Ford, and VW.  12 rounds for the innovation championship in motor cars.”

    No contest.  A startup to make cars?    Non-starter, right?  Well, Paul Elio has done it.   There is a long LONG waiting list to buy the Elio automobile, a 3-wheeler, that gets…84 miles per gallon!  (Beats even the hybrids!).  The car is American made!   And its cost?  $6800.   (About the cost of 2.5  high-end Armani backpacks).   Here is what the Elio website says:

   “A few short years ago, automotive enthusiast Paul Elio sized up the prevailing status quo of personal transportation. He saw the soaring costs of the vehicles we drive. He saw fuel prices spike to record highs almost daily. He saw Americans struggling with an economy that was taking too much and giving back too little. Paul Elio decided that the world was ready for something radically new. The result? A three-wheeled masterpiece of automotive brilliance that bears his name.”    Elio’s vision?  “To provide a fun-to-drive, super-economical personal transportation alternative, that’s affordable, safe, and environmentally friendly. We are committed to the American dream, creating American jobs, and bringing American automotive ingenuity to every vehicle we build. This is, and will remain our mission at Elio.”

          The boxing match has begun.  It ends as soon as it begins.  Elio knocks out the automobile giants.  Why?   Big companies cannot innovate.  By definition.  They would never let a car like the Elio get past the drawing board.  Low margins.  Etc. 

        Elio Motors might yet fail. But like Tesla,  it could spur the car companies to actually try something innovative.   Innovation comes from rebels.  And rebellion is the last thing big companies seek or even allow. 

        Kudos to Paul Elio!   And Big Oil?    Think about trying another business.  

Blog entries written by Prof. Shlomo Maital

Shlomo Maital