Electric vehicle maker Coda Automotive has filed for Chapter 11 bankruptcy, announcing on Wednesday May 1 that it will be refocusing its energies on being an energy storage business.
Coda filed bankruptcy through the District of Delaware. The electric vehicle maker expects a sale process lasting 45 days.
"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," Phil Murtaugh, CODA Holdings CEO, said. "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."
The bankruptcy for Coda comes amid layoffs and store closings after the company experienced low sales for its all-electric Sedan. The automaker's announcement regarding its transition into an energy storage business does make some degree of sense, given Coda's plans to offer Coda Energy, an energy storage business.
"Coda Energy's products are based on the same core technology, which includes its proprietary battery management and thermal management systems, found in CODA's vehicles adapted for stationary energy storage applications," Coda said in a press release. "The Company designs and builds scalable, custom energy storage solutions optimized for generation, distribution and behind-the-meter applications for commercial, residential and industrial end users. The Company is currently shipping product, and has a robust pipeline of new customers and existing installations in the field."
The market for battery-only cars in the U.S. lessened to around 5,000 vehicles sold through August last year, compared with around 6,300 by that same period in 2011. In total, around 87,000 plug-in hybrids and electric vehicles have been sold in the U.S. There are only two years left before President Barack Obama's target goal of one million sales for the industry.
