Coda bags Chinese car launch pro as new CEO

Electric car startup Coda has hired Phil Murtaugh, a former General Motors executive with a boatload of experience launching cars, as the company’s permanent CEO to oversee the launch of its first domestic electric-powered sedan.

This marks a new and crucial chapter for Coda. The company is preparing to launch its first-ever offering, a five-seat electric car sedan slated to arrive later this year, raise another $125 million pre-IPO ($76 million of that round has been raised so far) and move forward with an IPO, possibly this year. It plans to sell 14,000 cars in the first year of release, a goal that has some analysts skeptical.

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The company went through an executive shakeup of sorts right before it announced it would delay its original launch plans. Coda has been seeking a CEO since previous chief executive Kevin Czinger stepped down in a surprise move in November, just a few days after their senior vice president of global sales stepped down. At the same time, the company added COO to the duties of then newly-hired CFO Mark Jamieson.

Murtaugh has more than 30 years experience working for General Motors. He served as executive vice president of GM in Shanghai and later as the chief executive of GM’s China operations. He then worked with Chrysler as their senior vice president in charge of Asia operations until the most recent economic recession hit, forcing Chrysler to limit its operations in Asia. Murtaugh served as a consultant for various automotive companies until Coda hired him as the company’s chief executive.

Coda does have plans to sell its electric vehicles in China after the cars launch domestically, Murtaugh said. Coda has a joint venture in China for car batteries with Chinese battery cell maker Lishen Power Battery.

Murtaugh’s extensive background working with car launches in China and his relationships with battery manufacturers there made him a natural pick to ramp up the company’s efforts internationally, the company’s interim CEO Mac Heller said. Murtaugh even said Coda was in a very similar position to the one GM was in when it was first making its way into China with a car launch just around the corner and a need to form joint ventures with parts providers.

“A vast majority of the manufacturing operations in Coda are going to be China-based,” Murtaugh said.

As part of the arrangement, Heller will step down and become the company’s executive chairman. He said he will still remain highly active in Coda’s day-to-day operations. Heller took the gig in early November when Goldman Sachs-bred Kevin Czinger resigned.

The other focus for Coda under Murtaugh’s guidance will be expanding its grid storage business, which he said could be as large a business as Coda’s auto-manufacturing arm. Murtaugh also said Coda plans to open its own retail outlets in “high visibility” areas rather than distribute the company’s electric cars through other retail outlets. The locations will be in areas with a lot of foot traffic, and those interested in buying a Coda-manufactured electric vehicle can also schedule appointments online to visit and try out the cars or order them directly online.

Coda delayed the release of its sedan, which was initially to debut last month and go head-to-head with Big Auto contenders like the all-electric Nissan Leaf and partially electric Chevrolet Volt. The Coda sedan is a bit pricier than other electric vehicles on the market — at $45,000 before state and federal tax credits, it’s $12,000 more expensive than the Leaf. But Coda is hoping to do strong business in fleet sales to meet its rather aggressive sales target of 14,000 vehicles sold in the first year of production.

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Coda’s fourth round of funding is also on the way and a bit ahead of schedule, with the company securing just over $75 million before Christmas, Heller said. Coda is ramping up its fundraising efforts to finish up the round, which will be worth around $125 million. This brings the total raised to $201 million.