Elio Motors asking judge to overturn charges, fines from state agency
Targeting a retail cost of $6,800, the company will position the Elio vehicle as a cost-effective alternative to four-wheeled autos. (Source: KSLA News 12)
Elio Motors has promised to bring 1,500 jobs to Caddo Parish to build three-wheeled cars at the old General Motors plant in Shreveport. (Source: KSLA News 12)
CEO Paul Elio met with Caddo Parish Commissioners in May to address concerns about the company's future. (Source: KSLA News 12)
JEFFERSON PARISH, LA (KSLA) -
Elio Motors, which has promised 1,500 jobs building three-wheeled cars at the old General Motors plant in Shreveport, is now petitioning a Jefferson Parish judge to reverse fines and charges laid against them by a state agency over the summer.
Back on July 9, KSLA's cameras were the only ones in the room when Louisiana Motor Vehicle Commission leaders accused Elio Motors of breaking state law, charging them with operating as a manufacturer/dealer of recreational products without a license.
During that meeting in Metairie, the LMVC also fined the startup $545,000.
As part of the ruling, Elio Motors was required to obtain both licenses to manufacture and deal in Louisiana and place all refundable Elio Motors reservations into a trust account within 60 days. If they failed to do that, the startup would be charged a daily fine of $5,000 until they reached compliance.
The petition was filed in the 24th Judicial District Court in Jefferson Parish.
Under an ex parte stay order, the LMVC ruling would be delayed from taking effect until the judicial review is resolved.
The petition reads the LMVC's judgment "should be reversed in its entirety" because it was "in violation of constitutional and/or statutory provisions."
According to the petition, Elio Motors cannot be charged with operating as a manufacturer/dealer of recreational products without a license because they have not built any cars yet and the monetary reservations they take for their cars are just for spots in line and do not guarantee actual sales.
The petition also claims the LMVC acted with malice against Elio Motors, reading:
By imposing a penalty of $545,000, the Commission was deliberately attempting to put Elio out of business, knowing that Elio would not be able to pay such a steep fine.
In a statement sent to KSLA on Tuesday, LMVC Attorney Adrian LaPeyronnie wrote:
"There has been no judicial review by the district court yet. I requested that the court set a hearing so that a briefing schedule and a hearing date may be assigned."
This is a developing story. It will be updated with the latest details as they become available.