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Electric carmaker CODA files for Chapter 11

Wednesday - 5/1/2013, 5:50pm  ET

ROBERT JABLON
The Associated Press

LOS ANGELES (AP) -- Los Angeles-based electric carmaker CODA Holdings has filed for bankruptcy protection after selling just 100 cars and says it plans to quit the auto business altogether.

The parent of CODA Automotive filed for Chapter 11 Wednesday in a Delaware federal court. A consortium of lenders intends to buy it for $25 million and concentrate on the firm's energy storage business.

CODA is the latest casualty in an all-electric vehicle market that has struggled to lure consumers who are skeptical of the short battery life, relatively short driving range, high price and lack of infrastructure.

Last month, Anaheim, Calif.-based Fisker Automotive confirmed it's laid off about three-fourths of its headquarters workers as it struggles with financial and production problems.

Tesla Motors of Palo Alto, Calif., has yet to turn a profit.


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