IN MARCH 2012, CODA executive Forrest Beanum, left, spoke at the company’s unveiling of its Benicia-assembled cars; Solano County Supervisor Linda Seifert and Mayor Elizabeth Patterson (seated) were among those in attendance.
File photo
Poor sales cited as electric car company ends assembly in Industrial Park
By Keri Luiz
Assistant Editor
Benicia Economic Development Manager Mario Giuliani confirmed last week that CODA, the Los Angeles-based electric car company, has ceased its Benicia operations.
“CODA has ceased production in Benicia due to lack of sales,” Giuliani said in an email.
He cited previous news stories relating the difficulties CODA had in meeting projected timelines and sales.
“City staff was aware that CODA was not meeting their projected production/sales goals but it was confirmed this week that all CODA operations ceased last quarter,” he said Thursday.
“The company continues to operate out of their L.A. office, but no longer has a presence in Benicia.”
However, he added, “If the company’s financial viability improves, they may return to Benicia, but that is still unknown at this time.”
A CODA spokesman responded to a request for comment late Monday by saying the company “has suspended automotive production as it reviews strategic options to bolster its financing. While production is currently suspended, the company continues to provide service to its dealers and customers.
“Our desire is to secure financing that enables us to become fully operational.”
Because Benicia was not the point of sale for CODA’s operations, its departure had no sales tax implications for the city, Giuliani said.
The status of CODA workers hired in Benicia — whether they were released or reassigned to other locations — is unknown.
CODA announced Sept. 12, 2011, that it would begin assembling cars in Benicia, adding about 50 positions to its work force. The company picked Benicia for its assembly site after a year’s consideration, K. Forrest Beanum, vice president of the company’s public affairs and communications, said at the time.
Beanum said Benicia was chosen because its port has the necessary infrastructure to meet CODA’s production schedule, and because of its easy access to rail service and several interstate highways.
CODA rolled out its first commercially available electric sedans from an AMPORTS building at the Port of Benicia on March 12, 2012.
However, last September a recall was issued on 78 of the company’s electric sedans because of a side curtain airbag deployment problems, leading to speculation in the Los Angeles Times that the company’s all-electric car was selling poorly.
Beanum dismissed the Times’s report that the company had sold only 78 vehicles since launching last April, saying it “came to an erroneous conclusion.” He also said the company had not officially released sales numbers at that time, and that media guesses had been largely inaccurate.
Though CODA has ceased its Benicia operations, Giuliani said the company choosing the city for its Northern California operations was a positive development. “We are very proud that CODA chose Benicia as it its Northern California distribution point. This shows that our city is well positioned to attract new startup companies.
“The fact that Benicia was chosen is a win unto itself,” he said.
CODA sedans line an AMPORTS warehouse in September 2011, where company and city officials and others were on hand for the announcement that Benicia would host the assembly of up to 14,000 of the electric cars.
File photo
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Let the schadenfreude ensue.
Benicia did the right thing in welcoming this company. The vagaries of the market were unkind; does that mean the city should shun future opportunities like this one? Anti-business folks in town might say so, but their short-sightedness is the reason they are not in leadership positions in this city — and never will be.
There are “ideas” and there is “reality”. Somehow reality always trumps in the long-run. Or in this case, even in the short-run.
I’m sure the mayor will be as visible now as she was during the opening…..
Yet another “Green” project in the pile of failures. We as the taxpayers should be happy that this company was not able to get it’s hands on the $334,000,000.00 it was agressively seeking in free Obama money. Maybe one day the progressive socialist liberals will realize that throwing large sums of money at those that are pursuing these projects so they can get the biggest house on the block and their own jet and helicopter fleet is not working. Guess they should concentrate on some real research and development and remove the government from the equation. Where are all the political vultures that were dancing in the street singing happy days are here again now?
So I suspect you are against huge subsidies to Big Oil, Big Ag and all other forms of corporate welfare?
All are making megabucks already, why on earth should we give them free government money? Even AIG came out and said they could have survived without the bailout. If they fail so be it and let them do it all on their own. The only thing happening when the government gets involved is that another level of theft of taxpayer money happens. How do you think so many in Washington DC become millionairs on their $180k to $400k annual salery’s? Obama’s just announced that he is pimping himself now using our White House. For a mere $500K per year you can go hang with Obama once a quarter….In my opinion this does not pass the smell test….
What big subsidies and to whom and how much. Better take a look at the subsidies to all this Enviro Greenie stuff first.
Why first? It’s pennies on the dollar compared to what Big Oil gets. But your priorities have always been out of whack. Best sit this one out.
Mrs. Mike again stepping into something that you know nothing about.
You don’t know what I know. You don’t even know what you know. I’ll tell you: Little to nothing. Best sit this one out.
Mrs. Mike you, mayor and all the other Enviro Greenies in this town have no clue on a green business when you see it. Now just tell me what you know about 3F. Try nothing. I quietly or not so quietly know more about the finances and business opportunities is this city than all of you combined. Because I saw the writing on the wall about the CODA you are very upset about my wisdom. I never want any business to fail. For sure in Benicia. So Mrs. Mike get your green jeans on and rethink your statements.
Every time you comment on a story you show your ignorance through generalities and silly labels. That’s how your simple mind works. But your knowledge is so limited you are confined to spewing nonsense half the time and bile the other half. Keep cheering the downfall of businesses. It puts you in proper perspective for the uninitiated.
Do you mean F3?
Thanks Thomas for the correction. It is F3 & Associates. I assume you know this company and its principal. If not I will introduce you. I know you would be very interested if you are not employed there and know the operation.
No intros required. I may consider getting them signed up on my vendor list for conducting ALTA surveys locally. However, the chances of this are slim since my company just put together a top notch survey crew and technical staff that will provide nation-wide services.
If the government didn’t invest in technology we would not have much of our current technology that shapes our lives- now sometimes when you invest in technology some of those investments pay off huge and some don’t, that is the risk that comes with pushing the boundaries of new. It is sad to see such backlash against investing in a better future.
This CODA electric tin can twenty five year old car was a failure on its way before it even got started. Everyone would have liked it to be a success. But when the CSC and the mayor are there for photo ops that was clue one and you need not go any further. Mayor says twenty employees now soon to go to two hundred by year end. Well guess what in less than a year there are no CODA dedicated employees. The mayor should go into hiding. Oh I forgot she is in hiding. She is in Cuba. All the other Enviro Greeies will now come up with some excuse why this failed. The big one will be lack of government sponsored funding. The mayor must stay out of Econ Dev. She knows nothing about it. Career bureaucrat. This could hurt her possible chance of either seeking a third term as mayor or a county or state elected position. At this point all four council members could and would beat her in a mayor elction for this city. Yes that is right I am on the record on this one. So go after me.
Bob finally predicted something right! Everyone look! He’s been consistently wrong on everything for years but on this one, about this company he railed against for no good reason besides his anti-business beliefs, Bob Livesay predicted correctly. Congrats Bob.
Do you ever provide or contribute any facts, or just enjoy spouting off?
Fact: No one cares what you think.
By the way I have followed this CODA issue and saw it coming and did tell the people that needed to know what was happening.
Bob will be raising a glass (or five) to toast himself on the death of a business. Because that’s how he rolls.
“The fact that Benicia was chosen is a win unto itself,” This is a very strong point. Is broadband out there still an issue? Mare Island Rail Service has been kicked off Mare Island’s tracks and Alstom may be forced to move since their business is rail dependent. Hope we’re looking at that for possible industrial park placement. Too bad about CODA, maybe another EV manufacturer will want it someday.
I knew this would end in tears when I saw Codas Board of Advisors.
http://www.codaautomotive.com/leadership-management/
Pay particular attention to the last 2 names.
I’m sure that at least a few Benicians will recognize them.
Now I’m not precisely sure HOW these dirtbags will unload the losses on this venture to the taxpayer but I guarantee that they will; It’s what they do.
After TARP and the countless other lawless corporate bailouts I can’t look at a picture of Skeletor (Hank Paulson) with mentally sizing up his neck for a noose.
This CODA issue goes much deeper. Others have talked about loans, grants and stimulus money to Enviro Greenie ventures. Tesla and Fisker are very shaky and have tax payer money which the tax payers more than likely will never see or worse yet the loss of these Enviro Greenie jobs. Then look at the CODA partner battery company. There is another battery company that used gant money to pay the workers not to work while all along the batteries were being made in China. Believe me this is not anti business comment. It is a comment about the waste of tax payer dollars with false hopes and believe me dreams. The mayor should go into hiding on this one. May want to get an extended stay in Cuba till this cools off. She certainly is not needed for leadership in this city.
It is odd the way you just group all “Enviro Greenie ventures” together. It is like saying oh technology companies are wastes because a number them go out of business. In emerging markets, there is generally a high rate of failure, which is why the payoff is so high when they work out. However, they are necessary to build toward the future. As Thomas Edison said, “I did not fail, I found 10,000 ways that won’t work”.
The big issue is the mayor stated 12/14000 electric cars, 200 jobs and Solano County was going to purchase the car. None of that was even close and of course it did not happen. Now is she repeating what others said. More than likely. But at the same time a more caution approach on a company that had known issues and was also seeking government money. All proudly said up on the podium with others like it was the Academy Awards. Very bad political move. As it appears the elctric car market is best left to the pros and not these folks that look for a government handout. The mayor and all the Enviro Greenies will be silent on this failure. I will not.
I will not be silent. I will bask in someone’s failed dream. And somehow I can’t figure out why no one likes me …
Real American you must be looking in the mirror.
If I looked in the mirror and saw your face I’d kill myself. Would be the only honorable thing to do.
Apparently you do know me. Just what do I look like. Oh I know you have seen all my movies. That is how you know.
You look like Harry Caray only uglier.
You look like Harry Caray, only uglier.
Would you like to go to my film vestival so you can see my movies. That way you would know me. I will give you an autographed head shot. The tickets are a little bit expensive so that could let all you Liberal Socialist just waiting on the Red Carpet to get a glimpse of me.