It’s a sad story, but not a surprising one. Los Angeles-based electric car maker CODA Holdings has filed for Chapter 11 bankruptcy, saying that it hopes to reinvent itself in the energy storage field.
“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 CEO Phil Murtaugh.
CODA said in a statement that an affiliate of Fortress Investment Group is leading a consortium of lenders intending to provide debtor-in-possession financing of $25 million for the Company’s energy storage business.
The company was founded in 2009, and launched its first vehicle in March 2012, but things just never took off. With an 88-mile range and a $37,250 price tag, the Coda sedan sounded like a viable EV, but all anyone seemed to want to talk about was its old-fashioned, uninspiring appearance. According to Reuters, only about 100 units were sold.
In April 2012, CODA withdrew its application for a $334-million loan from the DOE, after waiting two years for the loan to be approved. The company announced at that time that it had signed a contract with Great Wall Motors to co-develop a new affordable EV, but we’ve heard nothing more about those plans since.
One of CODA’s suppliers, UQM Tech, told InsideEVs that it is still owed money for propulsion system components. Several other erstwhile partners have recently filed lawsuits, according to GigaOM, including several suppliers and a former employee.
Sources: CODA, Reuters, GigaOM, InsideEVs