I had a chance to interview a number of people at Local Motors including the Community Manager, Ariel Ferreira and John Rogers the CEO. The acronym they use for the business is COOL and is explained in this interview.
Of note is the fact that John Rogers indicated that they built the business based on a Co Creation process. It seems to be working quite well for cars.
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Local Motors is indeed very cool! A great combination of Threadless & IKEA!