Electric cars may be the future, but the future looks pretty dim for electric-car maker Coda Holdings Inc., which filed for Chapter 11 bankruptcy today.
Coda Holdings, parent company to Coda Automotive, plans to sell its assets to a group headed by a unit of Fortress Investment Group. The company said it will try to sell Coda Automotive, which has as much as $50 million in assets and as much as $100 million in debt, separately within 45 days.
Coda claimed that its electric vehicle was a “real world” car that had better battery life, range and acceleration than competitors such as the Ford Focus EV and the Nissan Leaf. But despite support from the president, who wants 1 million electric cars sold by two years from now, the market for battery-only cars shrank last year, according to Bloomberg. In fact, battery supplier A123 Systems Inc. also filed for bankruptcy recently, in October 2012.
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