Big Layoffs At CODA Automotive As The Company “Right-Sizes”

DEC 12 2012 BY JAY COLE 4

First reported to Plug In Cars, an anonymous source has said that CODA Automotive, a California EV start-up that features an all electric sedan built mostly in China, has laid off as many employees as it could, as sales have been more than disappointing.

They just cut everybody they possible could, their sales department went to just a handful of people. It’s a real mess.” 

Driving Dummy Enjoys The Benefit Of A 2 Star Front Impact Rating

According to reports, CODA has sold very few sedans since the car went on sale early this year (despite earlier stating it had 1,000 reservations just waiting on production), and work manufacturing the car has all but stopped since the National Highway Transportation Safety Administration issued a recall for faulty safety equipment this past summer.

Since the report was flushed out by Plug In Cars, CODA has attempted to get ahead of the story as Senior Vice-President of Government Relations & External Affairs (and who apparently did not lose his job today), Forrest Beanum has issued a statement:

CODA has released approximately 50 employees or 15% of our workforce across all functions to streamline our operations and right-size the Company. The Company is taking this action to better position our business going forward. We remain committed to the continued development and distribution of our products. The quality and safety of our products is of paramount importance. CODA vehicles meet all applicable U.S. Federal Motor Vehicle Safety Standards (FMVSS) and achieved an overall 4-star rating in National Highway Transportation Safety Administration (NHTSA) testing.

Overall it has not been a great day for CODA, as earlier today we reported that, while the sedan did in fact achieve a 4 star rating from the NHSTA, if you happen to be the driver of the 88 mile EV, you are in 2 star territoryNot good news.

Despite having a more than acceptable 88 miles of range (EPA),  the conservatively styled (inside and out) CODA is considered a pricey alternative (starting at $37,250) to the Nissan LEAF, which not only features a more reliable dealership/service infrastructure, but will also soon offer a much cheaper version than the CODA.  And its not Chinese made.

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4 Comments on "Big Layoffs At CODA Automotive As The Company “Right-Sizes”"

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Coda is an attempt at walmartizing the car industry – backed by Goldman ex-execs – that failed. There are things people need to be able to trust their lifes with – like cars – that you can’t just procure from China and sell.

If only people realized where their food was coming from …

Closed is the “right-size” for Coda.

Hahah… I agree.

Having said that, if they were the only EV maker in existence, I’d have to recount that. But since there are far better EVs from other manufacturers that are cheaper and much better looking, I just can’t see how they can compete at all.

To form an analogy – It is like trying to sell an LCD computer monitor in 2012 that looks like it is in a CRT casing to give it that 1990’s old-school feel, and trying to sell it for a premium. While yes, I’m sure there are a few smucks that would buy it, overall it would be a market failure.

If they wanted the car to have an old-school look they’d actually do better to go back far enough with the design that it looks like a classic car of some kind, rather than one that is just out of style.

I think someone needs to prepare the footnote for history, because that is where they are headed.