(May 18, 2016) PHOENIX — Elio Motors, the startup vehicle manufacturer planning to launch a three-wheeled vehicle that will get up to 84 mpg with a targeted base price of $6,800, has announced that it has signed a Letter of Intent with Linamar Corp, one of the auto industry's leading powertrain development and production companies.

Under the agreement, Linamar will partner with Elio for the manufacturing of the Elio motors for Elio, as well as for engines for global use in the automotive, marine and industrial sectors outside of the US.

The powerful, highly fuel-efficient 0.9-liter, 3-cylinder engine, which Elio Motors developed with partner IAV, could have applications far beyond the company's initial vehicle. The engine is expected to achieve up to 84 mpg, yet still reach speeds of more than 100 mph.

"Elio Motors has developed an engine with a rare blend of power and fuel efficiency that could have significant market potential beyond powering the Elio," said Elio Motors founder and CEO Paul Elio.  "Linamar will use its global presence and access to international manufacturers in automotive, marine and industrial markets to identify other uses for our engine and open up potential additional revenue for our company."

Linamar also will be a component and sub-system supplier for Elio Motors' other driveline and chassis systems in North America. They will collaborate with Elio Motors to create engine manufacturing capabilities at the Elio Motors' assembly plant in Louisiana to support the high-volume production of the Elio engine.

"We are excited about partnering with Elio on this important engine project, " said Linda Hasenfratz, CEO of Linamar.  "Not only does this give us great penetration into ultra-high mileage vehicles, it also gives us a chance to sell this highly efficient engine to a variety of markets and customers."

"Elio Motors is the first startup vehicle manufacturer to develop its own internal combustion engine in the automotive industry in more than 60 years," said Gino Raffin, vice president of Manufacturing of Elio Motors. "We're looking forward to working with  Linamar to  manufacture the engine  in our Shreveport facility as we move it toward commercial production."

The small car, which has been delayed for several years, is expected to go on sale sometime in 2017. More than 50,000 people have pre-ordered an Elio.