1. Follow us (@CODAautomotive) on Twitter

2. Tweet your own Earth Day pledge, and be sure to include @codaauto

3. Pick up your t-shirt and sign CODA’s pledge wall at the Santa Monica Earth Day on the Promenade event between 10 am and 7 pm this Saturday.

Event Details:  CODA Automotive will be on Santa Monica’s Third Street Promenade (booth #3, entrance off of Wilshire Blvd) from 10 am to 7 pm this Saturday showing the CODA, the all-electric car from the all-electric car company.

It’s not a question of when; all electric, green cars are coming this year.  It’s a question of how.

How do we, as an industry, help consumers overcome the price barrier that exists with this technology so that we can accelerate the widespread adoption of all electric cars?

CODA Automotive conducted extensive consumer insights research and analysis, which indicates that one of the highest impact ways to answer that question and move America into the electric car era is to change the $7,500 Federal tax credit program that is already in place for plug-In vehicles to an instant cash rebate program.

Similar to the 2009 Cash for Clunkers (CARS) program, which resulted in nearly 700,000 new vehicles sold during its eight-week run, a $7,500 instant cash rebate would be paid to retailers at the time of sale.  This would provide immediate price relief, reducing the upfront cost to the buyer.  While the concept behind the current program (making electric cars more affordable to more people) is a good one, it doesn’t work as a tax credit.

Most Americans think in short term, monthly payments.  A tax credit is not something they would see immediately and doesn’t help if they’re financing the car.  For instance, with the tax credit program a consumer who finances a $40,000 electric car over a 5-year term, would pay about $150 more per month and accrue nearly $1,300 more in interest payments over the course of their loan than if the program gave them an instant cash rebate.  That’s $10,300 more a consumer would pay over the course of five years.

Plug-In Vehicle Finance Transaction (60 Month Term)

*California will likely apply sales tax before deductions

Based on CODA Automotive’s extensive consumer research, restructuring the current Federal tax credit program to be an instant cash rebate would nearly triple demand for all electric cars in 2010-2011.  This would also allow CODA Automotive to price its all electric car, with touch screen navigation, on-board telematics, Bluetooth connectivity, and satellite radio capabilities, in the low $30,000-range or below, or simply put similar to a fully loaded Toyota Prius.  We believe this lower upfront price, coupled with electric cars’ lower total cost of ownership, will attract a broader range of customers and quickly spur the adoption of all-electric vehicles.

While others (including Darryl Siry and former New York Governor George Pataki) have pointed to the benefits of changing the tax credit to an upfront rebate, we believe it is the manufacturers’ responsibility to advocate for this change.  That’s why CODA Automotive is actively meeting with legislators to explain the real benefits of changing the basis of the plug-in vehicle tax credit program to one that is truly beneficial to consumers and a catalyst for initial sales of all-electric vehicles.

The fear that China is going to “beat” America is a growing concern that seems to cross all industries.  Green technology is no exception.  So it’s no surprise that when President Obama and President Hu Jintao announced the launch of the U.S.-China Electric Vehicles Initiative, those engaging in China fear mongering didn’t report about this collaborative partnership that aims to “reduce oil dependence, cut greenhouse gas emissions and promote economic growth” through various joint activities including:  standards development, demonstrations, a technical roadmap, and public education.

The reality is that we’re addicted to oil, blue skies are hidden behind a film of gray-brown smog, and health issues caused by air pollution are soaring.  We shouldn’t fear that China will “win,” we should fear that we all will lose because we’ve created an environment that is unlivable for future generations.  Consider:

- Together, the U.S. and China posses ~37 billion barrels of oil, less than 3% of the world’s total proven oil reserves, but guzzle nearly 28,000,000 barrels of oil per day, ~33% of the total barrels of oil consumed globally per day.

- Together, the U.S. and China are the two largest producers of carbon emissions, contributing nearly half of the world’s total CO₂ emissions.

As one of the two countries that have played the largest role in accelerating global climate change and environmental degradation, it is our responsibility to find ways to work with China to reverse the collision course we’re on.  The U.S.-China Electric Vehicle Initiative is a momentous step in the right direction for both countries and shows a willingness on both sides to cooperate.

David Sandalow, Assistant Secretary of Energy for Policy and International Affairs, put the issue of U.S.-China collaboration into perspective in Thomas Friedman’s “The New Sputnik” opinion piece when he said, “If they [China] invest in 21st-century technologies and we invest in 20th-century technologies, they’ll win … If we both invest in 21st-century technologies, challenging each other, we all win.”

U.S.-based companies need to partner in mutually beneficial ways with China to develop and bring to market green technologies.  We’re already doing this.  Our focus is on building jobs and an industrial base in both the U.S. and China to speed up the adoption of electric cars.  We think that’s the real win-win.

So, we’re embracing the idea of global collaboration, not competition, at the very core of our business model.  In fact, Kevin Czinger, President and CEO of CODA, participated as one of the U.S. delegates in the U.S.-China Electric Vehicles Forum in September to discuss CODA’s “Invented in America, Built Globally” model.  CODA is existing proof that the U.S. and China are both serious about cutting carbon emissions, and can work together to do it.

In the article, veteran auto industry analyst Maryann Keller said in response to DOE’s announcement, “We’re pouring $1 billion into two companies without a future.  The economics of the industry favors large companies.”

The idea that smaller companies can’t be successful and therefore won’t lead the revolution in alternative transportation is what we take issue with.  Within the past year, two of the three big, domestic auto companies went into bankruptcy and dealer sales tanked.  If that doesn’t say the auto industry needs a fresh breath of air from smaller players with disruptive models that aren’t confined by the bureaucracy of large corporations, then we don’t know what does.

Between rising carbon emission-related environmental degradation, Americans’ anti-oil sentiments, and the lack of alternative options, the market desperately needs innovative, nimble companies, like CODA Automotive, that can move quickly to shift expectations and get electric cars on the market that meet drivers’ needs and are better to the environment.

It’s hard for us to believe that one of the industry giants will do this – especially considering their businesses were founded on and  are still concretely rooted in the production of internal combustion, gas guzzling vehicles.

People, broadly speaking, need to understand the realities of electric drive technology’s use, benefits and limitations.  CODA will use this blog to support education and honesty about this technology.  Here’s our promise:  we will strive to present the facts about CODA Automotive, our cars, and our views in a way that is highly accurate.  That means the unvarnished truth – simple or complex as the case may be, whether we like it or not, and whether it helps us or hurts us.  We ask you to hold us to this standard.  If we work together on this through our interaction on this blog, together we can “clear the air” around electric cars.

Please let us know your thoughts on our posts and what other topics you would like to hear about in the comments section. While we welcome participation from our readers, comments will be moderated at our discretion to maintain a constructive environment for everyone.