Electric Car from China Looks to Grab Share of U.S. Market

A start-up car company in California thinks electric cars made in China will put it on the road to success. CODA Automotive says it plans to sell up to 14,000 of its CODA EV plug-in sedans in the U.S. by the end of the year. That puts them in direct competition with some of the most talked-about cars of the year - like the Chevy Volt and the Nissan Leaf.

The four-door CODA sedan will have a range of up to 120 miles when charged, which the company points out of three to four times the average American's commute. While the car will charge fastest via a specially-installed 220-volt electric charging station, the company notes that its batteries can also be powered by plugging it into any standard electrical outlet.

CODA is an American company, but the CODA EV electric car will mostly be assembled in Harbin, China from a Mitsubishi chassis and Chinese made lithium ion batteries. Finishing assembly will then take place after the cars are imported to California. The CODA EV will sell for $44,900.

Initially, CODA intends to target fleet buyers who purchase large numbers of vehicles. Already, the country's largest rental car company, Hertz, has announced it will begin to offer CODA electric cars to customers this year.

In addition, Enterprise Rent-A-Car will soon have 100 or more of the CODA EVs available for rent.

"With the mystery surrounding electric vehicles, we think this vehicle will not only meet the needs of many of our customers, but will also help to 'lift the veil' on electric cars for many of them and help them better understand the technology and why they might want to own one," says Lee Broughton, director of sustainability for Enterprise. "Supporting alternative transportation options and partnering with companies at the forefront of the electrification movement like CODA Automotive is a key component of our long-term sustainability strategy."

The plan is then to offer the eco-friendly electric cars to the mass market.

"Once we start selling to fleets and get a feel of how we are doing, we will start selling to consumers, says CODA CEO Phillip Murtaugh, a veteran executive with Chrysler. "Our plan is to go slowly."

But CODA doesn't intend to sell cars the way big companies like GM and Ford do.

"We won't start our retail sales through a traditional dealer network," Murtaugh says. "It will involve setting up company-owned sales outlets. They will be in high visibility areas with lots of traffic where people will be able to walk in or make an appointment online to test drive vehicles. Customers will be able to configure their vehicles, and place orders online. This will be a no-haggle buying experience. That's shown to be very, very successful with other brands."

Depending on its launch date, the CODA could wind up as the first Chinese-made car to hit the U.S. market. A Chinese car company, BYD, is testing a plug-in electric hybrid in Los Angeles and plans to offer it to consumers beginning in 2012.