2 Comments

Summary:

Yet another electric car startup is having trouble. Coda Automotive is laying off 50 employees — or 15 percent of staff — after a delayed launch, slow sales, and a car recall. The bad news follows Better Place layoffs, and A123 System’s bankruptcy.

The first shipping Coda sedan

Following struggles by Better Place, Fisker Automotive and the bankrupt A123 Systems, electric car startup Coda Automotive has laid off 50 workers, according to PluginCars. The car company has reportedly had really slow sales, and recently received a low score for its frontal crash test.

A Coda spokesperson said that 50 employees was 15 percent of the workforce. The company’s first electric sedan to market was delayed by years, and the car maker officially launched its sales in the Spring of 2012. But even after launch, the company had to recall 78 of its cars for faulty parts.

Coda's electric sedan, rear shot

Coda has been directly competing with the LEAF in terms of price, all-electric features and the fact that both cars are pretty basic. Nissan’s LEAF has an official electric range of 73 miles and a 99 MPGe, and costs $35,200 (without subsidies). The Coda sedan has a base cost of $37,900 down from $44,900 (before any state and federal subsidies).

Coda has a joint venture with China battery maker Lishen, called Lio (oil spelled backward), and is in the process of raising $150 million in funding to help get these inaugural cars to the first customers in California. Other investors in Coda include Aeris Capital and Singapore-based EDB Investments.

This is a bad few weeks for electric car companies. Electric car charging infrastructure company Better Place delivered massive layoffs, electric car company Fisker Automotive is searching for a partner to help it get its Atlantic built, and battery maker A123 Systems was sold off in bankruptcy court to Chinese auto giant Wanxiang.

  1. These cars look pretty homey — not really in the same league with Tesla or Fiskar, are they? Sure, the others are more expensive, but if Coda is going to put out something that looks like a Japanese or Korean compact for $40K, then it’s hard to imagine them invoking the kind of passion in their customers that a startup car company needs to survive.

    Share
  2. Looks are important but performance is everything, they say u eat with your eyes first then taste later, but if the food tastes terrible all hell breaks loose regardless of looks. We need a balance between performance and price, its always been the problem with electric cars. At least 50% to 50% balance. Then you will see the masses flocking to buy it.

    Share

Comments have been disabled for this post