Coda Automotive has furloughed employees last Friday, its second round of cost-cutting measures in the past month. This is further evidence of the financial difficulties being experienced by Coda Automotive, which builds Chinese-made electric vehicles. It has not been revealed what percentage of Coda’s 275 workers was affected.
According to a Coda spokesman, the furlough will last for around three months and that employees from all departments will be affected. The spokesman added that Coda CEO Phil Murtaugh continues to head the company. In early December, Coda laid off around 50 workers, comprising around 15% of Coda's workforce at the time. Coda released a statement to say that the furloughs were needed to boost its financing and to place the business at a better position.
It also said that it maintains enough staff members to ensure that the company is operational and stays committed to the continued development and distribution of its products. Coda pledged to continue to provide service to its four dealerships and existing Coda customers. Coda said that it is optimistic that with this temporary action, it will be able to strategically direct resources towards vital operations and to put the company on a path that’s more sustainable.
In spite of the public and private funding given to Coda, other EV start-ups and their suppliers such as battery producers, they continue to face obstacles. Coda’s electric sedan is built in Benecia, Calif., using powertrains and partly assembled vehicles manufactured in China by its joint venture with Hafei Motor Co. This model is built on an old Mitsubishi platform. Coda’s sales figures were not released. However, Experian Automotive said that only 32 units had been registered in California through August.