Electric cars have been around for over a century, without ever catching on with the general public. There are plenty of reasons for that; low oil prices, limited range, and the overall prevalence of petrol-powered cars. The business model behind selling cars of any kind, though, has not really changed. Dealerships bring cars into a showroom, customers come to the lot, pick out what they want, and drive it away… or order it and wait a week. But will that model work for electric cars?
Probably. But that doesn’t mean the model couldn’t use some improving. Coda, the California-based electric car startup, plans to use a different business model for both its dealerships, and its car assembly. And it sounds like a pretty good plan.
Starting a car company is about more than building a good car, electric or otherwise. You have to sell the cars after you built them. That requires leasing large lots to place dealerships on, in addition to either building the car domestically, or importing it from another country. This all costs a lot of money, which can kill a fledgling car company if it isn’t done right.
Coda is going about things differently. Rather than build the cars themselves, Coda is leasing a factory in China, and then partially assembling the car overseas. This way, Coda doesn’t have to open its own assembly plant, saving hundreds of millions of dollars. The cars will be shipped to California, where assembly will be finished (and Coda can save on auto tariffs by importing the unfinished car as “car parts”).
Sales of the Coda sedan will initially be limited to California. They plan to open just a single dealership in Los Angeles. How can they expect to survive with just one dealership? Here is the really clever part. While there is just one dealership, there will be seven satellite stores where potential customers can test drive the Coda sedan. The car is said to have a range of up to 120 miles, can be completely recharged in six hours, and should sticker for between $30,000 and $40,000. Test drives of the Coda sedan are set to begin this summer, and with this business model, it sounds like they might have a real shot.
Source: The Columbus Dispatch | Image: Coda
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About Christopher DeMorro
I’m not sure how a company like Coda is going to compete in the marketplace with trusted car companies like Ford and Nissan, who have extensive dealer networks.
I wouldn’t be comfortable buying a $40K car from a company that has no investment in infrastructure and could disappear tomorrow. How would you buy parts or get your car serviced?
I’m not sure how a company like Coda is going to compete in the marketplace with trusted car companies like Ford and Nissan, who have extensive dealer networks.
I wouldn’t be comfortable buying a $40K car from a company that has no investment in infrastructure and could disappear tomorrow. How would you buy parts or get your car serviced?
KIA is making fuel cell cars for 2015.
Call me when those are ready.
KIA is making fuel cell cars for 2015.
Call me when those are ready.
I am assuming those satellites will handle the more routine service needs as well. I’d imagine they’ll also have alot of the service included into the price of the car. The real difference would seem to be that it’s a mega dealership that isn’t competing against other dealerships for the same company.
I wonder if the dealerships will be franchised or corporate owned?
I am assuming those satellites will handle the more routine service needs as well. I’d imagine they’ll also have alot of the service included into the price of the car. The real difference would seem to be that it’s a mega dealership that isn’t competing against other dealerships for the same company.
I wonder if the dealerships will be franchised or corporate owned?
did you just say “trusted car companies”.. then mention the word “ford”. thats a laugh. my dad never cared for ford. when i was 5 he, his father, brother, and uncle spent far too much time under the hood of those. my dad swore them off forever, and was quite pleased to this day ( as we all are ) with our toyota/hondas. we love’em
on another note… i wouldn’t mind kia at all. sadly the coda car isn’t that great ( at least to me ) though i love the idea of an electric vehicle.
i’ve been reading some very encouraging things about the goss132 company. wow. now that is worth looking out for.
really love the way they do batteries too. i don’t know if they are available yet, or where to buy them. i will probably check them out first, followed by the leaf a close second.
not into the super fast, sporty, or should i say ‘hyped tesla’. that thing is just too much and there is almost no space for the price your paying.
thats another good thing about goss132. looks like the space i’m used too so looking forward to that.
cheers
did you just say “trusted car companies”.. then mention the word “ford”. thats a laugh. my dad never cared for ford. when i was 5 he, his father, brother, and uncle spent far too much time under the hood of those. my dad swore them off forever, and was quite pleased to this day ( as we all are ) with our toyota/hondas. we love’em
on another note… i wouldn’t mind kia at all. sadly the coda car isn’t that great ( at least to me ) though i love the idea of an electric vehicle.
i’ve been reading some very encouraging things about the goss132 company. wow. now that is worth looking out for.
really love the way they do batteries too. i don’t know if they are available yet, or where to buy them. i will probably check them out first, followed by the leaf a close second.
not into the super fast, sporty, or should i say ‘hyped tesla’. that thing is just too much and there is almost no space for the price your paying.
thats another good thing about goss132. looks like the space i’m used too so looking forward to that.
cheers
The company seems to have big players involved but ultimately it is about sales. Consumers will initially buy the “new thing” but in the end it has to be worth the investment. The question I have is a $40k price tag, you get a lot of car today for that price.
The company seems to have big players involved but ultimately it is about sales. Consumers will initially buy the “new thing” but in the end it has to be worth the investment. The question I have is a $40k price tag, you get a lot of car today for that price.