CODA Hopes for New Beginning
EV Maker Now Focusing on Energy Storage
Remember the Coda, the eponymously named all-electric sedan from CODA Automotive? Some folks might, especially those in California, where the vehicle launched last year. Offering advanced lithium-iron phosphate battery technology that provided notably more range and quicker charging times then the first wave of mainstream EVs, the Coda sedan went on sale to much fanfare—but little volume—in March of 2012.
Well, it’s a bit of the ol’ “good news, bad news” for the company, which is currently restructuring its business under Chapter 11 of the U.S. Bankruptcy code: On the one hand, EV shoppers hoping the Coda would expand its availability to other states are now out of luck; on the other, its nifty battery tech is poised to have a significant impact on stationary energy-storage systems.
The party line from Phil Murtaugh, CEO of CODA Holdings: "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. 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."
In fact, thanks to a diversification program begun in 2011, the company already is shipping its new products to new customers for use in commercial, residential and industrial applications across the country.
But to be clear here, CODA will be looking to “monetize value of its existing automotive business assets,” and that means the end of the line for the Coda sedan—which, as noted on the next page, did offer its buyers some distinct benefits.