Home / Auto News / News article: Electric Car Maker CODA Files for Bankruptcy - AutoGuide.com News
 |  May 01 2013, 8:12 AM

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With Fisker teetering on the brink, another American electric car maker will be closing operations with CODA EV announcing today its plans to file for Chapter 11 bankruptcy protection.

Filed today in the District of Delaware, CODA Holdings, Inc. has announced it plans to cease its automotive operations to instead refocus its business efforts on energy storage solutions.

FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group will provide financing to allow the company to remain operational during the restructuring. CODA will also seek to liquidate the remaining assets of its automotive division.

SEE ALSO: CODA EV Review – Video

“After concluding a comprehensive review of our strategic options, the Board of Directors, management team and senior lending group have concluded that focusing on the Company’s energy storage business presents the best opportunity moving forward,” said Phil Murtaugh, Chief Executive Officer, CODA Holdings, Inc.  “We believe the restructuring process that we have entered into today will enable the Company to complete a sale and confirm a Plan that maximizes the value of its assets, serving the best interests of our stakeholders.”

Since its launch CODA has sold just 100 of its electric vehicles, which boast a 125 mile emissions-free range and initially cost $38,145.

  • http://www.facebook.com/rick.bacon Rick Bacon

    Welcome to the world of Mercury, Chrysler, Pontiac, Saturn, and all the others who couldn’t compete.

  • Chad Wilson

    Some of those you mentioned were a result of downsizing to optimize profits and reduce duplication. Coda is an entirely NEW company trying to create a product for a very tiny market during a recession. NEW + Niche + Recession = fail. The product concept is sound, but the timing was all wrong for such a small company.

    For the EVs to truly succeed, they will require the backing of Ford and other BIG companies with deep pockets and the ability to afford the time needed to grow the market.

    Personally, I think EVs are entirely the wrong direction. They depend on batteries which are mostly still toxic to produce and recycle, but also require rare earth minerals not readily available in the USA. You trade one oppressor (OPEC) for another (China). Neither lends to energy security.

    Hydrogen is the great salvation for the cars all across the planet. With hydrogen, you only need access to the ocean and some electricity.