Coda Automotive has begun with the production of the 2012 Zero
Emission All-Electric Flagship Sedan. The Coda Sedan ranges about 150 miles, is powered by a 36-kWh battery pack and is provided with 134 horsepower. This new innovation idea points out the commitment of the company towards sustainability and clean technology. The Sedan does not harm the environment and thus contributes to improving our future.
Coda has lowered the price of the electric sedan from $44,900 to $39,900 before sending it into production. This puts the Sedan into competition with the Ford Focus Electric and Nissan Leaf.
The question that arose from this action was: why did they lower the price without having sold any cars yet? If they had decided to lower the price after not having sold enough cars due to the price of $44,900 being too high, then it would be understandable. However, lowering the price without having experimented within the market is not a very solid strategic decision.
They could have started off with the original price at $44,900 and and left room for bargaining with the costumers about the $5000. And depending on how much the customer is willing to pay, they could have set the final price at any anywhere between $44,900 and $39,900. This way the customers would think that they got a really good deal and build customer loyalty towards Coda.
MLA
Toor, Amar. “Coda Lowers Price of Electric Sedan, Sends It into Production Ahead of 2012 Launch.” Engadget. Web. 21 Nov. 2011. <http://www.engadget.com/2011/11/19/coda- lowers-price-of-electric-sedan-sends-it-into-production-ah/>.