The O'Brien Auto Group has been granted an exclusive dealership for the Wheego Life in Oregon and recently received its first vehicle at its dealership in Salem. O'Brien hopes to eventually sell 25 to 30 Wheegos a month when the Atlanta-based company cranks up production volume this fall.
Essentially a two-seater, the $33,000 car will go head to head with full-size electric sedans from more established companies such as the Nissan Leaf, the Chevy Volt and upcoming models from car giants Ford and Toyota.
Like Nissan and other companies offering electric models, Wheego Electric Cars hopes Oregon will be a fruitful debut market because of its environmental ethic and the state's participation in the federal EV project. That program is a stimulus funded effort to establish a public charging infrastructure across six states and study how early adopters use their cars and chargers.
"We know there's a lot of excitement in Oregon about EVs, so our dealer in Oregon got one of the first cars produced," said Susan Nicholson, a spokeswoman for Wheego. "Those other big companies have done a good job raising the visibility of the industry and the excitement. ... We feel like there's an opportunity for us to step in. Our car is available now."
Only in limited quantities, however. Wheego won't start ramping up production until its assembly contractors in California move into a larger facility. The company is currently seeking investment capital to finance that expansion.
Wheego's mere existence illustrates how embryonic the electric vehicle market remains.
The company was spun off from a manufacturer of electric recreational vehicles in 2009 and is led by Mike McQuary, the former president of the internet service provider Mindspring. Wheego started off producing a low-speed, neighborhood electric vehicle call the Whip. Limited to 35 mph, that model is street legal, but primarily targeted at government fleets, military bases and retirement communities, Nicholson said.
Photo courtesy of O'Brien Auto GroupThe instrument cluster in the Life lets the driver know how much farther the car can travel on its charge, while also monitoring other electrical functions.The Life is the company's bid to grab a small slice of what is expected to be a huge market. Fully crash tested, it has a top speed of 65 mph and a range of 100 miles on a charge. The body and chassis are produced in China, the motors and batteries in California. Assembly takes place in Ontario, Calif.The Wheego looks similar to a Smart Car, and some experts expect a proliferation of similar small-form cars over the next decade as automakers struggle to meet stricter federal fleet mileage standards.
The Life isn't cheap, with its $33,000 base price in the neighborhood of the Nissan Leaf or a low-end BMW. Air conditioning and destination charges add $3,000 to the tab. But it's eligible for a $7,500 federal tax credit, plus state tax credits.
Bengt Halvorsen, an automotive journalist who writes for GreenCarReports.com, said he's skeptical that Wheego Life will sell in much volume. The company arrived at the tail of the neighborhood vehicle market --a niche dominated by small companies making limited use vehicles for fanatical enthusiasts --and just before the automotive giants bring the full weight of their engineering, supplier and marketing infrastructure to bear on electric vehicles.
"This is shakeout time for these small EV ventures," Halvorsen said. "Once the major automakers bring their EVs to market, all but a few won't survive."
Additional costs: airconditioning and freight, $3,000 Nissan Leaf base price: $33,720 Chevy Volt base price: $40,280 Tax credits: All three models are eligible for federal credits up to $7,500 and state credits, until Jan. 1, 2012, of up to $1,500.Part of the problem is pricing, he said. Lithium-ion battery packs are the most expensive component, and economies of scale will give big car companies a major advantage.Mike O'Brien, owner of the O'Brien Automotive Group, noted that back in the mid 80s, no one thought Japanese car makers would succeed in the luxury car market either.
"Who can look in the crystal ball and say Wheego isn't the next Honda," he said. "The opportunity came to us, we thought it looked like a perfect fit in the Salem market, so we grabbed it.
"It's the consumer who determines what the market is, not some guy sitting forecasting on Wall Street," O'Brien said.
Nicholson said Wheego isn't looking for Nissan- or Ford-sized sales volumes.
"We're hoping to be shipping 100 a month by September," she said. "We don't ever expect to be selling a 1,000 cars a week. That's not part of our game plan right now, and we don't need to sell that many to be successful because we're a very small operation."
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