Bill, you have a great story to tell so let’s talk about Coda. What is the company’s current focus?
Coda Automotive is an all-electric company headquartered in Los Angeles, California. We are all about being 100 percent pure electric energy. In fact, we even have a battery storage facet to our business, but the automotive sector is what we really want to excel. We want to prove the technology of our battery, and our battery management system, in a market that we think is going to evolve rather quickly as people start to accept electric vehicles, battery electric vehicles, 100 percent into their lifestyles or their work environment.
How do you see yourself in the fleet space?
We think there is a big opportunity in fleet. A lot of the fleet municipalities and some of the private fleets are early adopters of technology such as this. I have gone through LPG and CNG, and fleets are usually the first ones to take on these types of alternative fuels. I think electric vehicles will provide that same type of opportunity. They will step into it, but the interesting thing that we are finding is a hesitancy not unlike what has happened in the retail segment.
As you get into these new technologies the fleets may not convert 100 or 200 units to this technology, they may just try one or two. So, they are stepping into it rather slowly, but they are the ones that are talking most legitimately about putting vehicles on the road early.
We are also going after the retail segment. We already have four dealers in California selling Codas; we will add more before the end of the year and we continue to contact fleets throughout the country who might be interested in going into battery electric vehicles.
Tell us about the vehicle itself.
It is a standard four door, five passenger sedan; with the best range in its class at 125 miles. We have a 14.5 cubic foot trunk – one of our best features – so it is very traditional where most manufacturers have used trunk space as a place to store the batteries. If you didn’t notice the all-electric insignia on the rear deck lid you might just think it is an ICE in a parking spot. A lot of people like that; it makes them feel very comfortable.
For fleet application, the five passenger configuration and the utility in the trunk makes it a very practical car for their fleets.
What about availability?
We would have no problem with a 50 or 100 fleet order. If we had a succession of fleets order at this level, we would have to increase the production. We don’t anticipate excessive orders, so we are going to ramp up as we think the industry will ramp up. We would have no problem with that scenario.
Right now we are finding, as I said earlier, if fleets are going to step into a 50 or 100 vehicle order, whether it is Coda or some other well-known OEM, a fleet manager is going to want to be comfortable with the technology and how it is applicable to their business needs. That includes drivers in their fleet and their comfort with their vehicle. I think probably six months, maybe a year down the road, you will see orders of this magnitude but I think early on you won’t see them that large.
Clearly range anxiety has been bandied about for some time. How do you counteract that?
First of all, if you drive the car you start to get comfortable with the range. Most people don’t recognize that 92 percent of the drivers only drive about 75 or 80 miles a day. Our vehicle has a range which they call EPA rating which includes starts and stops, air conditioning on, radio operating of 88 miles. So, 92 percent of the people would be fine with the operation of our vehicle in their normal commute.
But, as the EVSE infrastructure starts to come into municipal locations or retail shopping centers, people will see these chargers and the comfort level will improve. In fact, when people drive the vehicle on a daily basis they will recognize they can go to and from their house and never have to go to a filling station again or will they necessarily have to seek out a charger when they are out doing what they are doing during the day.
The vehicle, for the most part, applies to their lifestyle and if they are a two car owner it absolutely makes sense once you get comfortable with the range. The range anxiety is something that will come down in time with experience.
One of the issues that we hear with fleets is that they have a lot of drivers who live in apartment buildings or condominium groups so charging is perhaps not readily available to them. How do you address that
People who live in condos or apartments, it depends on what kind of coding ordinance they may have in that complex, may have a difficult task. I think the building codes going forward in Los Angeles, for example, will include the ability, so EVSEs can be easily installed by occupants whether they are renters or owners of the condominium. So, that is one of the challenges. When you get into a metropolitan area, especially with older infrastructure, a lot of apartments such as in San Francisco, there will be challenges.
Now, in most of those cases, I believe that charging units will be provided at work because many businesses are encouraging the adoption of this technology and trying to make it convenient for their employees. So, that is one way to contend with the condo issue.
Additionally, while electric vehicles like Coda are very practical for 92 percent of the population because of their drive time, some of that population may have a problem depending upon their housing situation. That is why we get evaluations up front. What infrastructure do they have in the house? Can a level two charger be installed, which we highly recommend? In some cases there may be owners in remote locations, older facilities, condominiums or apartments and they cannot install the level two charger. They too will probably have to seek charging through a work location. Again, the Bay Area is a prime example of this situation. However, a lot of Bay Area work facilities are providing access to chargers.
When you talk to a fleet manager about the Coda electric vehicle, what are some of the things a fleet manager needs to know? What are typically the questions they are asking you and what would you advise a fleet manager to do in order to research whether this is a good vehicle for them?
Fleet managers by nature will always ask questions about the cost of operation and yes, to some extent, they have concerns about range. However, they are a little bit more sophisticated or understanding of the range. It is not as much an emotional issue as it might be for a retail customer. The total cost of operation of electric vehicles is what they are going to review. So, we spend a lot of time discussing the lack of required maintenance with an electric vehicle. For instance, the Coda has approximately sixty percent fewer moving parts than what a typical ICE engine might have. So, oil changes go away, the lack of the moving parts reduces the amount of repairs.
These are a few of the savings, let alone when you consider the savings with today’s gas prices. We do most of our calculations at $4.00 a gallon. I am not sure what it is in Dallas, I think it is a little lower. I think on the West Coast it is over $4.25. Illinois it is over $4.25. So, you start using a business model that shows the consumption of fuel versus the cost of electricity. It is pretty easy to win them over in terms of the savings when operating an electric vehicle.
Now, to be perfectly frank, if it is an outside sales force that travels hundreds of miles a day, electric vehicles may not apply. But, the retail consumer and the majority of fleet drivers don’t drive that distance. They drive probably 40 or 50 miles a day and that would be a lot. Municipalities might drive 20 or 25; you wouldn’t even need to charge the vehicles every day in that application
You have to discuss the scope of use for these vehicle but most fleets have a lot of opportunity for electric vehicles without any inconvenience to the operator.
What about resale?
A lot of questions come up about resale of electric vehicles. In the case of the Coda, we spend a lot of time talking about the subsequent use of a vehicle once it has been removed from the “new list.” You buy a new electric car, you worry about things like when do you have to do to replace the battery?
Well, first of all, our warranty is ten years or 100,000 miles. At 100,000 miles our vehicle still retains
93 percent of its charging capability or only loses 7 percent of its capacity. So, this vehicle will have a life beyond that first owner, it could go to a second owner – probably a third owner because it has an expected range well over 250,000 miles usable operation. So, in a fleet application they can go four, five, six years on this battery and not have to worry about the replacement and still theoretically have an outlet in the used car market, just like and ICE.
Obviously you have got the GM Volt and the Nissan Leaf and others will be joining the space. Why Coda?
Well, Coda, interestingly enough, was a concept born from Miles Rubin who had low speed electric cars; a very smart entrepreneur. He did not understand why the OEMs were not bringing electric cars to the general public so we tried to bring a practical family oriented sedan to the marketplace with segment leading range. I think we have been very successful in this task.
I don’t know – and this is a tough one to address – I am not sure how serious some of the OEMs will be in the electric vehicle market, as they will just attain some minimum production requirements. However, it seems like Nissan is pretty serious about it. We still think there is a great opportunity as this growth continues; there is a lot of room for additional manufacturers in this segment. Our plans are not just to be a North American automotive company. We plan on eventually going into the Asian and European markets. Maybe not this particular vehicle but with products down the road.
You are headquartered in Los Angeles. Where are these vehicles available?
Well, right now we have launched in the California marketplace because the infrastructure with EVSEs, as well as some of the attitudes for alternative vehicles is its strongest. So, we believe over half the market, not only for any hybrid vehicle but for electric vehicles, will be in California. And then, of course, you move up the coast into Washington and Oregon who will have similar attitudes for alternative fuels. A little later, the other coastal markets.
Our plan is to be available in all major markets through the 2013 timeframe. California is a stronghold and we are going to roll out slowly, again, as the demand goes up for the product and as the industry begins to accept battery electric vehicles. We believe there is a great opportunity not only for some of the OEMs but for some new players of which, interestingly enough, we have three new players. One is a fully electric vehicle, one is a range extended – and they have all come out of California, which is kind of interesting in the auto industry. That is not a normal place for automotive manufacturers to create vehicles.
BIO
Bill Beasley has served as the Vice President of Automotive Sales since April 2011. Prior to coming to Coda, Bill was employed by General Motors (GM) for over 35 years in a variety of sales management and executive positions. The early part of his career was spent in service and sales positions working directly with the Chevrolet Dealer organizations in various parts of the country.
Bill holds a Bachelor’s degree in Industrial Administration from General Motors Institute (now Kettering University).