First all-electric Coda sedan rolls off assembly line in Benicia

By Dana Hull

BENICIA -- The first all-electric Coda sedan rolled off the assembly line here Monday, marking a big day for the privately held company and the city.

Coda, which is based in Los Angeles, manufactures most of the vehicle's battery system and body in China, thanks to a joint venture with Chinese battery maker Lishen. The parts are then shipped to the port city of Benicia for final assembly and safety and quality inspection at the Amports facility here.

Benicia Mayor Elizabeth Patterson, Solano County officials, plant workers and Coda executives applauded as the first sedan slowly rolled out of the plant and before a bank of cameras at a press event Monday.

"Coda started five years ago in an airport hangar in Southern California," said Mac Heller, the company's executive chairman. "We shared a conviction that with technology and science, we could create cars that do not spoil the Earth, drain the treasury or hurt the health of our children."

The company, which sees California as its primary initial market, has applied for a federal loan through the Department of Energy's Advanced Technology Vehicles Manufacturing, or ATVM, program. But its application has been pending for nearly two years, and Coda went forward without any financing from the government.

Coda has 300 employees worldwide and about 25 at the plant in Benicia, a figure that is expected to grow as manufacturing ramps up.

The company has not said how many cars it plans to manufacture in 2012 but the number is expected to be low -- 5,000 units or less.

The four-door sedan sells for $37,250 but qualifies for a $7,500 federal tax credit and $2,500 state rebate, making it significantly cheaper than a Chevy Volt or the forthcoming Model S sedan from Tesla Motors (TSLA). Coda's battery comes with a 10-year, 100,000-mile warranty and an EPA-certified range of 88 miles per charge. Coda says the car can travel up to 125 miles per charge in optimal driving conditions.

Coda Silicon Valley will open on Stevens Creek Boulevard in San Jose on Friday, the same day three California residents, including one from Redwood City, are expected to take ownership of their Codas.

The company plans to open a Coda "Experience Center," a store and showroom where consumers can learn more about electric vehicles, at the Stanford Shopping Center in Palo Alto in the spring. It expects to roll out the vehicle nationwide before tackling markets in Europe and eventually China.

Coda's entrance into the electric vehicle market comes amid rising gas prices but also amid concerns about the viability of some high-profile competitors.

The Fisker Karma suffered a black eye last week when Consumer Reports announced that a $107,850 Karma broke down during testing and had to be hauled away in a flatbed tow truck.

"We buy about 80 cars a year and this is the first time in memory that we have had a car that is undriveable before it has finished our check-in process," Consumer Reports reported Thursday.

GM's Chevy Volt has also suffered from slower-than-expected sales, which is one reason why Coda declined to discuss production volume or number of reservations.

"If our competitors aren't doing well, it hurts us," said Thomas Hausch, Coda's senior vice president of sales and marketing. "It threatens the confidence of the nonexpert consumer."

Hausch said the EV market is divided roughly into four consumer segments: geeks, greens, gloaters and grazers.

Geeks are early adopters who love electric vehicle technology, while greens are environmentally aware consumers who want to reduce their carbon footprint.

Gloaters are vehicle enthusiasts who care a lot about design, and grazers are cost-conscious people who count every penny spent on gas, smog checks and oil changes, costs that the Coda comes without.

Contact Dana Hull at 408-920-2706. Follow her at Twitter.com/danahull.

The all-electric Coda sedan

Seats: Five
Range: EPA certified: 88 miles
Price: $37,250; qualifies for
$7,500 federal tax credit and $2,500 state rebate

Source: CODA Electric Vehicle, Electric Cars, Zero Emissions EV Car, Electric Vehicles | CODA Automotive