Coda Cuts Price Of Coming EV, Boosts Battery Warranty

Coda Cuts Price Of Coming EV, Boosts Battery Warranty

Coda Holdings, maker of the upcoming Coda electric vehicle, is cutting the EV’s price by $5,000 to $39,900 and is introducing an industry-leading 10-year, 100,000-mile battery warranty in hopes of boosting orders for the oft-delayed, California-only sedan now slated to go on sale early next year. Coda Automotive, the holding company’s car-building subsidiary, had last year announced a $44,900 base price for the car, nearly $5,000 more than the 2012 Chevrolet Volt plug-in hybrid and almost $11,000 more than the base price for Nissan’s 2012 Leaf electric car. Because the Coda qualifies for a federal tax credit of up to $7,500 and a California credit of $2,500, initial buyers will pay as little as $29,900 for the 5-seat, midsize electric sedan. Production of the battery-electric car began this month at the company's joint-venture manufacturing plant in China.

Although the company said that it implemented the price cut so close to the car’s launch date because it has achieved “advancements in technology” and in the development and manufacturing process, it was likely also decided after CEO Phil Murtaugh reviewed the pace of advance orders that have been taken since Coda opened on-line ordering in late September. The original price – which many industry watchers criticized as too much for the plainly styled sedan, although it delivers more than 100 miles of range on a single battery charge – had been set under Murtaugh’s predecessor, Kevin Czinger; he and Coda sales chief Michael Jackson both resigned late last year.

In a statement released this morning, Murtaugh said that with the new price, class-leading range and a battery warranty that tops the 8-year, 100,000-mile terms offered by Nissan and GM for their electric-drive vehicles, Coda is in a better position of achieving its “mission of putting an electric vehicle in every garage.” It could take some time to achieve that goal, however. Initial plans call for the Coda to be sold only in California for a year or so before beginning a slow market expansion across the country.  The slow pace is intended to give the new company time to perfect its sales and service operations.

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