PHOENIX, May 17, 2016 /PRNewswire/ -- Elio Motors, Inc. (OTCQX: ELIO), 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, today 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."

About Elio Motors

Founded by car enthusiast Paul Elio in 2009, Elio Motors Inc. represents a revolutionary approach to manufacturing an ultra-high-mileage vehicle. The three-wheeled Elio is engineered to attain a highway mileage rating of up to 84 mpg, while providing the comfort of amenities such as power windows, power door lock and air conditioning, accompanied by the safety of multiple air bags and an aerodynamic, enclosed vehicle body. Elio's first manufacturing site will be in Shreveport, Louisiana.

About Linamar Corporation

Linamar Corporation (TSX: LNR) is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. The Company is made up of 2 operating segments – the Powertrain/Driveline segment and the Industrial segment, which are further divided into 4 operating groups – Machining & Assembly, Light Metal Casting, Forging and Skyjack, all world leaders in the design, development and production of highly engineered products. The Company's Machining and Assembly, Casting and Forging operating groups focus on precision metallic components, modules and systems for engine, transmission, driveline and body systems designed for global vehicle and industrial markets. The Company's Skyjack operating group is noted for its innovative, high quality mobile industrial equipment, notably its class-leading aerial work platforms and telehandlers. With more than 24,000 employees in 57 manufacturing locations, 6 R&D centers and 21 sales offices in 17 countries in North and South America, Europe and Asia, Linamar generated sales of $5.2 billion in 2015. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com or follow us on Twitter at @LinamarCorp.

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements." These statements involve risks and uncertainties, and the Company undertakes no obligation to update any forward-looking information. Risks and uncertainties that could cause actual results to differ materially from planned operations include, without limitation, delays in receipt of adequate financing, delays in commencement of production, decreased consumer interest in the Company's products, downturn in general economic conditions, increased production costs and availability of raw materials, competition, and unfavorable market and regulatory conditions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Readers are referred to the Company's periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The information contained in this press release is a statement of the Company's present intentions, beliefs or expectations and is based upon, among other things, the existing business environment, industry conditions, market conditions and prices, the economy in general and the Company's assumptions. The Company may change its intentions, beliefs or expectations at any time and without notice, based upon any changes in such factors, in its assumptions or otherwise, and it undertakes no obligation to revise or update publicly any forward-looking statements for any reason. The cautionary statements contained or referred to in this press release should be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on its behalf may issue.

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SOURCE Elio Motors