Coda Contending With Suits Over Unpaid Vendor Bills
Things are looking not so great for Coda Automotive which in addition to having sold few of its all-electric cars, having had a recall over side curtain airbags, and laying off 50 employees last year, is now defending itself in court over alleged unpaid bills to vendors.
According to a report by Gigaom, lawsuits filed in the past six months have come from RLE International, RTECH, EDAG and FEV.
Dollar amounts owed are said to be $365,500 to RLE, $608,770 to EDAG and $268,200 to FEV. An affiliate of RLE, RTECH, has also sued for failure to pay contract workers.
Coda is negotiating with these companies however, and all but the FEV case have been dropped in agreement between Coda and the respective parties.
The news is foreboding for the Chinese-based EVs that are styled like Toyotas from the 1980s.
In their favor, the cars have offered larger batteries and longer range than, say, a 2012 Nissan Leaf, but sales – which are not actually reported by Coda – are believed to be miniscule in comparison.
We shall see where all this goes.