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Electric-Car Maker Coda Adds Recall to List of Troubles

Add another problem to Coda Holdings Inc.’s fraught launch of its electric sedan.

In addition to selling few cars—and ending up in bankruptcy protection—Coda Monday said that the airbags in the vehicles that did find owners have a “potential safety issue.”

Crash-testing in March by the National Highway and Transportation Safety Authority found that the cars’ side curtain airbags “did not deploy as intended upon impact,” according to court papers filed by the company. The airbags still met applicable safety standards, but Coda acknowledged that there’s some risk associated with the problem.

“Sub-optimal deployment may result in sub-optimal protection for vehicle occupants in the event of a crash,” the company said in court papers.


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