Production delays, inconsistent quality, mediocre performance and a bland appearance were some of the factors that led to the demise of CODA Automotive. With a body and chassis built in China, the company finalized construction and provided deliveries in California. The CODA looked like an early 90s Toyota Corolla (the E-100) and, with an investment of over $200-million dollars, meant that Coda lost about $2-million dollars for every car they sold.
CODA sold about 100 vehicles in California since last year.
Hopefully, some of that investment capital will be rewarded via Coda Energy, a battery/electric-storage company that will independently function, even without Coda Automotive.
“May 1, 2013 — Los Angeles, CA — CODA Holdings, Inc. (“the Company” or “CODA”) announced today that it is focusing its business strategy on the growing energy storage market. CODA plans to implement the restructuring of its business through a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code. The voluntary petition was filed today in the District of Delaware. This process is intended to enable the Company to complete a sale, confirm a Plan and emerge from bankruptcy in a stronger position to execute its new business plan. The Company expects the sale process to take 45 days to complete.” – – CODA Automotive
In my opinion, CODA’s failings came from a business idea preceding and moving ahead without a strong product. It was too basic and too boring. With vehicles like the Nissan Leaf, Chevrolet Volt, Mitsubishi iMiEV and even the Tesla Model S; having something so pedestrian was bound to fail. I feel bad for the workers and those few who bought one.
Check out this fun video with the Lexus ES Hybrid – a proper, green, luxury machine!
Maybe the displaced CODA work-force can look to Tesla for employment?
