Fisker files for bankruptcy for the second time

Nissan was said to be high on the list for a buyout, however, the tie-up didn't go through.

According to reports, American EV maker, Fisker has filed for bankruptcy protection in the district of Delaware. The announcement comes amidst a troubling few months for the company, facing depleting funds. The company in a statement said that it has assets worth $500 million to $1 billion, against liabilities between $100 million to $500 million.

A spokesperson for the brand stated, "Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world. We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers' hands in both North America and Europe. But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company."

Fisker launched the Ocean EV last year and delivered 4,929 vehicles. However, the production of the Ocean stopped in March this year, with no plans to resume anytime soon. Over the past few months, Fisker has been in the news for dropping prices of its Ocean EV, reducing its base price from $38,999 to $24,999. The EV maker has also been laying off various departments in order to reduce costs.

The EV maker was also in talks with other automakers looking for either a cash infusion or a buyout. Nissan was said to be high on the list for a buyout, however, the tie-up didn't go through.

This is the second time "Fisker" has filed for bankruptcy. The last time was in 2013, when the original company, Fisker Automotive, founded by Henrik Fisker, was sold to Chinese auto parts supplier Wanxiang Group. The Fisker Automotive was behind models like the Fisker Karma. While the Karma is still on sale, it is sold under a different company name.

Source: Car&Bike

Redlining the Indian Automotive Scene