Fisker CEO Henrik Fisker introduces the all-electric off-road Ocean called Force E during the inaugural “Product Vision Day” in Huntington Beach, California, on August 3, 2023.
Frederic J. Brown | Afp | beautiful images
American electric vehicle (EV) manufacturer Fisker filed for bankruptcy protection late Monday, looking to sell assets and restructure its debt, after succumbing to rapid cash burn to deliver its “Ocean” SUVs. ” in the United States and Europe.
Electric vehicle manufacturers such as Proterra, Lordstown and Electric Last Mile Solutions have also gone bankrupt in the past two years due to depleted cash reserves, fundraising hurdles and challenges in ramping up production due to vehicle problems. global supply chain. Fisker’s car is also being investigated by US regulators.
The company, founded by auto designer Henrik Fisker, had doubts about its ability to stay in business in February, and a month later its efforts to secure investment from a major carmaker failed. failed, forcing the company to limit operations.
“Like other companies in the electric vehicle industry, we have faced various macroeconomic and market headwinds that have impacted our ability to our efficient operations”.
“After evaluating all options for our business, we determined that proceeding with a Chapter 11 sale of our assets was the most viable path forward for the company.”
It is also in advanced negotiations with financial stakeholders for debtor-in-possession financing, the company said, without providing further details.
The company’s operating unit, Fisker Group Inc., filed for Chapter 11 bankruptcy in Delaware, listing estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million. According to court records, it has approximately 200-999 creditors.
After Fisker failed to raise capital from a major automaker — which Reuters reported was the Japanese automaker Nissan – it began exploring options, including in- or out-of-court restructuring and capital markets transactions.
It has paused production as well as investments in future projects until the auto partnership is reached and said it will cut its workforce by about 15%.
Fisker produced more than 10,000 vehicles in 2023, less than a quarter of the forecast, but only delivered about 4,700 vehicles. Its cars are under regulatory investigation for certain incidents, including an investigation begun by the U.S. auto safety regulator last month.
