News Column

Coda Files for Bankruptcy

May 1, 2013
Coda electric car (file photo)
Coda electric car (file photo)

Electric carmaker Coda Automotive Inc filed for bankruptcy Wednesday as part of a reorganization that would see it exit the auto business and focus its efforts on energy storage.

The demise of the Los Angeles-based company underlined the challenges facing the electric vehicle sector in the United States, where the only company to have succeeded in creating a well-selling product is Tesla Motors Inc.

Its main competitor, Fiskar, is reportedly also on the verge of bankruptcy while sales of Nissan's all-electric Leaf have been disappointing as US customers grapple with the high price of electric vehicles and their limited range compared with petrol-powered cars.

Only 5,000 electric vehicles were sold in the US last year through August, compared with 6,300 a year earlier, the Bloomberg financial news agency said.

Coda chief executive Phil Murtaugh said the company would seek to sell its assets to a group led by Fortress Investment Group. In its bankruptcy filing, the company listed assets worth as much as 50 million dollars and debt of up to 100 million dollars.

The Coda compact cost more than 37,000 dollars and had an average range of 142 kilometres per charge. Its chassis and battery pack were both built in China.

For more coverage on the automotive industry, please see HispanicBusiness' Auto Channel

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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