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Following its official bankruptcy filing, Coda Automotive is back with more not-so-good news. In Delaware bankruptcy court, the automaker has filed a motion to "conduct a voluntary recall of Coda Sedans to replace roof-mounted side curtain airbags."

Last August, Coda recalled 78 vehicles for improper installation of side-curtain airbags. The new filing doesn't specify a number of vehicles affected – but it does say Coda sold less than 100 vehicles, total – just that it expects the recall will not cost more than $40,000.

Coda is not undertaking the recall just for the safety of Coda drivers (though that is a prominent reason). The filing says, "the Coda name is an asset in which the Debtors have invested heavily and is likely to represent a valuable asset to a buyer" and that "the Debtors submit that taking appropriate steps to avoid negative associations with the Coda name that may arrive from failure to address a known potential safety issue in a Coda product makes good business sense."

You can read the court documents below.

Coda Recall Motion



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    • 1 Second Ago
  • 10 Comments
      Actionable Mango
      • 2 Years Ago
      Just my personal opinion, but I don't think the Coda brand name is a valuable asset.
        2 wheeled menace
        • 8 Months Ago
        @Actionable Mango
        Coda also stands for 'codependents anonymous' Accidentally stumbled into one of those meetings one day. What was heard cannot be unheard.
        raktmn
        • 8 Months Ago
        @Actionable Mango
        It is just an excuse to justify giving anything of value at all to customers, when there are creditors with superior positions in the bankruptcy. Without that statement, car owners would have to wait at the end of the line until all other creditors were satisfied. The legal justification comes from the legal obligation of the company to maintain as much value as possible throughout bankruptcy proceedings. They are trying to trigger that legal obligation to maintain investor value. It is an attempt by Coda's management to fight to do right by their customers on the way out. It shows their management were definitely in this business for the right reasons. Hopefully none of the creditors will object.
          Marcopolo
          • 8 Months Ago
          @raktmn
          @ raktmn "It is an attempt by Coda's management to fight to do right by their customers on the way out. It shows their management were definitely in this business for the right reasons " Or an attempt to by the directors to avoid being sued personally by Coda owners, for trading while insolvent and failing to make provision for foreseeable liabilities, as was the case with their unfortunate employees.
      brotherkenny4
      • 8 Months Ago
      I am confused as to what CODA was trying to accomplish in the US. This was Chinese right? Well, the Chinese are known for dumping numerous products on the US at loss prices just to drive out competition. What was CODA doing here? It looks like they just wanted to waste money for no good reason. They certainly weren't undercutting the US prices. Did they actually think $40K was the price just because GM and Ford set that as theirs? Were they oblivious to the fact that Ford and GM don't really want to sell these cars? For those that fear the Chinese will take over the world economy, I think you can relax a bit.They apparently are not that bright.
        raktmn
        • 8 Months Ago
        @brotherkenny4
        Brotherkenny, Despite what you might have heard from ranting haters here at ABG, CODA is a US company launched by the same US folks who launched Miles Electric, who have been involved in the green scene since the 1970's, connected with folks like Paul Newman. Or as some ranting haters would deride them: "a bunch of left-wing radical socialists". Rhetoric and hate aside, the only reason they have Chinese company involvement (not chinese gov't involvement, the PRC is not a shareholder or a partner) is because they worked with a Chinese company to provide gliders because no US company would agree to it. They partnered with a Chinese battery provider because US companies like A123 were notorious for refusing to sell small batches of their batteries. This is the same reason why Tesla had to go to a European company to get gliders for the Roadster, and why Fisker had to get the Karma build in Europe. No US car companies want to help startup EV companies in any way. Chinese companies had products CODA couldn't get in the US, and had better prices. The same reason why Walmart sources from Chinese companies. That doesn't mean Walmart is partnered with the Chinese Government because they also have chinese companies that are business partners. Miles Automotive formed a separate company for CODA and took on Chinese companies as partners because Miles automotive isn't independently wealthy the way Elon Musk is, and had to partner in order to get his dream of highway capable green cars on the roads in the US. They aren't a Chinese company here to waste money. It is a US green car company who thought way back in the mid 2000's that they could beat all the rest of the US companies to the market with a 150 mile range car, while the major car makers were still sleeping. They were planning on a car that would be in the low $20's after applying the $7,500 dollar tax incentive, scheduled to begin sale in late 2008. They targeted buyers who valued owning an EV above aesthetics. They tried, and it didn't work. Nothing nefarious about it. The global economy crashed, costs were higher than expected, there were huge technical delays, the car initially had quality issues, and Nissan and GM beat them to market. There wasn't anything unbright about it. They just tried and failed. It was a perfectly good business plan for a world where there were absolutely no highway capable EV's being sold in the US. It was a good business plan in a world where old used RAV4 EV's were going for 80K+ bucks on ebay. They missed that market window, and now their business plan doesn't make sense in a world of Leaf's getting a $6,500 dollar price cut, and Volts being available at $5,000 off of MSRP. Here is a good peek back into history: http://www.evworld.com/article.cfm?storyid=1228
        carney373
        • 8 Months Ago
        @brotherkenny4
        I'm pretty sure that just as GM intended at the beginning for the Volt's price to be lower than it ended up being, so also did Coda, but both were stuck and unpleasantly surprised, and then went on to unpleasantly surprise the general public, with the price they had to offer the car at. Also, Coda's key strategy was to beat the Volt and Leaf to market, and they were initially on track to do that but ran into glitches and delays. With the Volt and Leaf already available, there was not a compelling reason to get the Coda, for most EV buyers at least. Finally, the company and car were not "Chinese". The car's design was Italian and it was manufactured in California. The fact that a Chinese automaker also used that Italian design is irrelevant.
          Marcopolo
          • 8 Months Ago
          @carney373
          @ carney373 You keep repeating this nonsense ! The Coda is a poorly PRC built copy, of an old Japanese Mitsubishi model. Coda did not commission any Italian design studio, nor did the PRC manufacturer ! To try to assert otherwise is just false. The Battery pack is imported from the PRC, along with most of the components. If the body, Batteries and most of the drivetrain are all made China, what the hell makes it "manufactured in California " ?
      Dave D
      • 2 Years Ago
      Can this get any sadder?
      bluepongo1
      • 8 Months Ago
      If they didn't lose their former employee's contact information this should be an easy fix.... because I'm pretty sure they're the only ones with the stupid car.
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