Linamar, Elio Motors Partner on Engines

Canadian supplier Linamar Corp. has signed a letter of intent with Elio Motors Inc. to help produce 3-cylinder engines for Elio’s three-wheeled vehicle.

Elio claims the 900-cc engine it designed will deliver 84 miles per gallon and propel the company’s $6,800 vehicle to a top speed of more than 100 mph.

Linamar, a maker of highly engineered powertrain components, will help Elio set up its assembly plant in Shreveport, La., supply the company with driveline and chassis systems and find additional markets for the the vehicle maker's little piston engine.

Elio has struggled to get its three-wheeler launched. The company said in April it doesn’t expect to achieve high-volume production until 2017, about three years later than it originally planned. In March the company cautioned in a regulatory filing that it has accumulated a deficit of $54 million and expects to generate a “significant” loss in the current fiscal year.