EV startup Fisker files for bankruptcy, legendary car designer's second setback


by

Werner Bayer

Fisker, an electric vehicle manufacturer founded in California in 2016, filed for Chapter 11 bankruptcy protection on June 18, 2024. The company announced in early 2024 that it would not have enough working capital to cover the next 12 months, but less than six months later, the company's operations have reached a deadlock.

FISKER GROUP INC. FILES FOR CHAPTER 11
(PDF file) https://assets.ctfassets.net/cghen8gr8e1n/6W19OiEBJDVIFVEmo4feHA/df902c5cb2b067251a300efb0b35f611/Fisker-Filing-FINAL.pdf

EV startup Fisker files for bankruptcy, aims to sell assets | Reuters
https://www.reuters.com/business/autos-transportation/ev-startup-fisker-files-bankruptcy-2024-06-18/

Fisker Recalls All Oceans Before Company Files for Bankruptcy
https://www.caranddriver.com/news/a61155206/fisker-ocean-recall-bankruptcy/

Fisker is an EV manufacturer founded by Henrik Fisker , a famous car designer with a career at BMW and Aston Martin, and began production of its first mass-produced vehicle, the Ocean, in 2022.

However, Ocean has been poorly received by owners and reviewers, with YouTuber Marques Brownlee, who is famous for his gadget reviews, calling it 'the worst car I've ever reviewed.' In March 2024, the company also suffered an issue where it accidentally revealed that Ocean's problems were not expected to be improved anytime soon while responding to the review.

EV manufacturer tries to put out a fire in negative reviews, but ends up pouring more fuel on the fire instead, unaware that it was being recorded, revealing the truth, and the manufacturer's stock price halving in one month - GIGAZINE



To make matters worse, a defect in the motor control unit (MCU) was discovered in early June 2024, resulting in a recall of 6,864 units, almost all Oceans sold in 2023.

Fisker, which was struggling with the poor performance of its main and only model, Ocean, had been seeking investment from major automakers to stay afloat, but talks fell through. According to a Reuters report, the major automaker that had been approached about a bailout was Nissan.

With financing options running out, Fisker filed for Chapter 11 bankruptcy in Delaware on June 18.

'Like others in the EV industry, we have faced a variety of market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we have determined that proceeding with the sale of our assets under Chapter 11 bankruptcy protection is the most viable path for us,' Fisker said in a statement.


by Lucas T Photography

Fisker's bankruptcy is the second for founder Fisker. Fisker launched EV manufacturer Fisker Automotive in 2007, but the company ran into financial difficulties due to problems such as a recall for its debut luxury plug-in hybrid vehicle, the Fisker Karma, which was prone to fires. In 2014, the company was acquired by a Chinese company and disappeared.

Fisker later took over the brand and founded a new company, Fisker Inc. When the company first went public, he said he wanted to be the 'Apple of the automotive industry' by outsourcing car production, modeled after Apple's outsourcing of iPhone production to Foxconn and others.

Upon hearing of Fisker's bankruptcy, Brownlee commented, 'Rest in peace. I know everyone says I killed this company, but the truth is the company was doomed long before I released my review video. This is sad news because the EV industry always needs more competition. This company just couldn't get over the hump.'

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