Law Office of Judith A. Descalso Law Office of Judith A. Descalso

California electric car company files Chapter 11 bankruptcy

The West Coast, and California in particular, has been the focus of the so-called "green energy" revolution that is supposed to be taking place in America. Individuals and companies everywhere are trying to solve the riddle of how America will move on from the use of fossil fuels. Numerous solar energy companies have been founded in California, but unfortunately many go on to make news not because of the technological advances they make, but because so many have had to file for bankruptcy. Now, a green energy car company based in California, Coda Automotive, Inc., has joined that procession, having filed for Chapter 11 bankruptcy recently.

In the company's Chapter 11 filing, liabilities of approximately $100 million were listed against assets of about $50 million. The early reports indicate that the plan is for a sale of the company.

Coda was focused mainly on the development of electric cars, and had produced one model with a reported sales price of $37,250. The vehicle went on the market in March of last year, but the company reportedly only sold about 78 units.

More electric cars and hybrid cars are hitting the market every year. The move to using electricity to power automobiles comes mostly due to the fact that the emissions from fossil fuel-based vehicles is more harmful to the environment, and might not be all that good in the long term for the American economy. However, being on the cutting edge of change in society is not always easy. Many companies file for Chapter 11 bankruptcy to take advantage of the associated benefits, which include breathing space to come to terms with creditors over business debts, and possibly time to reorganize the company into a more profitable entity. Only time will tell if the technology produced by Coda Automotive, Inc. will be purchased and reintegrated into the automobile industry.

Source: Eagle-Tribune, "Electric car maker Coda files for bankruptcy," Ronald D. White, May 5, 2013

No Comments

Leave a comment
Comment Information