Dr Automotive Design and Tools

CODA Holdings today announced the initial closing of a Series D preferred investment round totaling $76 million, bringing the company's total invested capital to more than $200 million.

The funding will be used to prepare for start of production of the company's flagship all-electric vehicle, the CODA Sedan, and to support the company's 2011 sales and marketing efforts. The investment will also fund additional equity investment in the company's joint venture battery production facility where CODA will manufacture its multi-purpose Lithium-ion power battery systems for automotive and utility applications.

New investors Harbinger Capital Partners and Riverstone Holdings LLC both led the round, and Morgan Stanley acted as CODA's exclusive investment advisor and placement agent for this round. Existing investors participating in the offering include: Miles Rubin, CODA's Founder and Co-Chairman; Steven "Mac" Heller, CODA's Interim CEO and Co-Chairman, former Goldman Sachs Worldwide Head of Mergers & Acquisitions and Co-Head of the Investment Banking Division; AERIS Capital, the lead investor in CODA's Series C Round; and Angeleno Group, CODA's founding venture backers. Harbinger and Riverstone will each have a seat on CODA's Board of Directors.

"The caliber of our investors speaks volumes about our business model and the opportunity that exists within the electric vehicle and battery industry," said Heller. "I strongly believe that when one thinks about the opportunities presented by the global power battery industry, the global electric vehicle industry and CODA's proven ability to partner with leading companies in both China and the United States, one has to believe that what we are doing today at CODA is one of the most exciting businesses in the world. The consummation of this Series D funding and the backing of Harbinger and Riverstone represents a strong validation of this view."

In addition to producing electric vehicles, CODA is a global manufacturer of transportation and utility power storage battery systems through its joint-venture with Lishen Power Battery, LIO Energy Systems. Lishen, the largest shareholder of which is China National Offshore Oil Corporation (CNOOC), is one of the world's largest manufacturers of Lithium-ion cells. CODA is considering several sites in Ohio for the construction of a power battery manufacturing facility that would also be built in a joint venture with Lishen. Construction of a facility is contingent upon the approval and receipt of a Department of Energy (DOE) Advanced Technology Vehicles Manufacturing (ATVM) loan.

CODA's debut vehicle, the CODA Sedan, is a four-door, five-passenger all-electric car. The vehicle is powered by a breakthrough Lithium-ion battery system with more energy capacity and all-electric range than other electric vehicles in its class. The vehicle is fully-equipped for comfort, convenience and safety. Factory standard equipment includes a telematics package, navigation with turn-by-turn directions, roadside assistance with an emergency button, a Bluetooth system with an embedded microphone, AM/FM/XM radio with satellite capability, iPod dock, MP3/USB connectivity and other features.

Safety equipment includes anti-lock brakes with electronic stability control and advanced airbags with an occupant detection system. The vehicle is backed by a three-year/36,000 mile limited warranty and the battery system is backed by an eight-year/100,000 mile limited warranty. The car will be marketed initially to public and private fleet customers, as well as consumers in California with an expansion planned soon thereafter.

The Hertz Corporation today announced a joint partnership with CODA Automotive to bring, by the beginning of 2011, its new four-door, five-passenger all-electric CODA Sedans(TM) to Hertz's California locations as part of the Hertz Global EV program.

"Hertz's partnership with CODA Automotive is another element of our long term strategy to provide consumers with electric vehicle access on a global scale," said Mark P. Frissora, Hertz Chairman and Chief Executive Officer. "As we continue to build out our EV and PHEV infrastructure, we get closer to making electric vehicle travel an everyday reality."

As announced in September, Hertz Global EV will be the first company to provide a range of all-electric vehicles and charging stations on a rental and car-sharing basis at global scale. The CODA Sedan will join vehicles from Nissan and other manufacturers as part of Hertz Global EV's diverse fleet. With a range of 90 to 120 miles per charge during all seasons, the CODA Sedan is designed to be plugged straight into a standard household unit, among other charging options, for a seamless experience.

Kevin Czinger, Chief Executive Officer of CODA Automotive said, "CODA Automotive and Hertz share the goal of bringing EV technology to the everyday consumer and making electric-vehicle travel easy and seamless. Hertz has the industry expertise and extensive global network, and we have a revolutionary vehicle and unmatched devotion to the all-electric platform -- together it's a winning combination."

As the world's largest general-use airport car-rental brand, Hertz is uniquely positioned to introduce multiple groups of consumers -- urban drivers, university students, travelers, and corporations -- to the all-electric vehicle.

Coda Automotive, a Santa Monica-based electric car company, is in advanced talks with the Community Redevelopment Agency to develop a battery assembly factory on a 20-acre plot on the edge of Downtown.

The CRA has been angling to bring an environmentally friendly technology company to its so-called Cleantech Manufacturing Center site since September 2008. AnsaldoBreda, an Italian rail car manufacturer, had been slated to develop the plot south of Downtown before it pulled out of a deal at the last minute last year.

This Thursday, the CRA board is scheduled to consider entering into an exclusive negotiating agreement with Coda. The proposed agreement, which CRA officials would not comment on, would concern plans to develop a plant for the assembly of lithium-ion battery packs used in Coda vehicles.

“We haven’t signed any type of formal agreement yet but it’s definitely an area of interest, as are several other areas of interest in greater Southern California,” Coda spokesman Forrest Beanum said last week, before the CRA meeting had been publicly announced.

The facility would be part of the cars’ final assembly process, with most of the manufacturing taking place in China. Coda partners with various Chinese firms to build their all-electric cars, which are expected to be available for sale to the public later this year, according to the company’s website.

The city purchased the site from the state for $14 million in April 2008. Adjacent to the Los Angeles River, it has a long history of industrial users, which led to heavy contamination. The city spent $2.2 million to clean it up.

AnsaldoBreda, in a deal pushed by Mayor Antonio Villaraigosa, had been slated to develop a 240,000-square-foot, $70 million light rail manufacturing facility on a 14.3-acre portion of the property. The deal fell apart before last October when the company refused to sign a contract it had negotiated with the Metropolitan Transportation Authority. AnsaldoBreda would have produced 100 new rail cars at the plant.