2012 Coda Sedan
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Another ominous sign for Coda Automotive: multiple lawsuits filed by suppliers who claim they are owed money. This comes after Coda laid of about 50 employees in December and then furloughed a few more in January; news has surfaced of four lawsuits filed since June of last year.

EDAG Group, an engineering firm, filed its lawsuit last June and said Coda owed it $608,770. RLE International, a vehicle and component product development company, filed in late October and claimed Coda owed it $356,500; its affiliate, RTECH, filed suit in December for an unspecified amount stating Coda failed to pay for contract workers. Vehicle testing company FEV filed in December and said Coda owed it $268,200.

Three of the cases have been agreed to be dismissed by the parties who filed them. The RTECH case was dismissed after Coda filed papers stating that the contract in question forced RTECH to resolve the issue through arbitration. Two other cases may have been settled the same way, Giga Om reports, and the FEV case is ongoing.

It's tough to pay debts if you're not selling any cars. Official numbers have not been released, but Coda may have sold fewer than 100 of its all-electric sedans since the car went on sale in March 2012. Since then, there's been a recall and a two-out-of-five star frontal crash test rating from the National Highway Traffic Safety Administration.


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