- Fisker filed for bankruptcy protection in Delaware
- The startup automaker estimates liabilities ranging from $100 million to $500 million
- Fisker ceased production with contract manufacturer Magna Steyr in March
Electric vehicle manufacturer Fisker in Monday file for bankruptcy after the company failed to secure new investment to help production its Cross the ocean run again.
Fisker said in a statement that it had been searching Chapter 11 bankruptcy protection with a court in Delaware and is currently negotiating with creditors regarding debtor-in-possession financing and the sale of remaining assets.
In a court filing seen by ReutersFisker estimates its liabilities at between $100 million and $500 million and its assets at between $500 million and $1 billion.
The move comes about a year after deliveries of the Ocean, Fisker’s debut model, began. Production of the small electric crossover was to be undertaken by contract manufacturer Magna Steyr at a factory in Austria, but it has been cancelled. stopped in March after Fisker experienced a cash crunch.
Henrik Fisker with first customer Fisker Ocean – May 2023
According to Reuters, more than 10,000 Oceans are under construction by 2023 and only approx 4,700 were delivered to customers. The company has not said what support will be provided to Ocean owners.
Before filing for bankruptcy protection, Fisker attempted to raise funds by partnering with a major auto manufacturer, rumored to be Nissan. Company also reduced price on the Ocean in an effort to reduce the construction glut.
In addition to funding problems, Fisker also suffered cooling demand for electric vehiclesas well as supply chain issues that have delayed Ocean’s production ramp-up.
From L to R: Fisker Ocean Force E, Pear, Alaska and Ronin prototypes
The National Highway Traffic Safety Administration also began a preliminary investigation into the Ocean in May after receiving complaints that the doors sometimes failed to open.
This is the second case of an electric vehicle startup founded and led by Henrik Fisker is going bankrupt. Another company operating under the Fisker name went bankrupt in 2013, with remaining assets sold to Chinese battery company Wanxiang. The previous Fisker was eventually revived and now operates as Karma.
A buyer with deep pockets could purchase Fisker’s assets, pay off all debt and restore Ocean’s production. Fisker also presented designs for three additional vehicles that could be brought to market. These include the Pear urban crossover, Alaska pickup truckand Ronin convertible.
