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Troubled Fisker slashes price of leftover 2023 models

Fisker announced a round of drastic price cuts in a bid to offload its inventory of unsold 2023-model-year cars and hoist itself out of dire financial straits. The only model in its range, an electric crossover called Ocean, will cost up to $24,000 less beginning on March 29, 2024. The company offers three Ocean trim levels called Extreme, Ultra, and Sport, respectively. Updated pricing is as follows. 2023 Ocean Extreme: $37,499 ($24,000 less than before) 2023 Ocean Ultra: $34,999 ($18,000 less than before) 2023 Ocean Sport: $24,999 ($14,000 less than before) Note that these figures exclude destination and available incentives. Fisker notes that the price cuts only apply to 2023 models, which could deter some buyers. While these are new cars, and they feature the 2024 version of the company's operating system, some rival brands are already rolling out their 2025 models. To sweeten the deal, Fisker points out that the leftover 2023s are equipped with up to $7,000 in options including 22-inch wheels and extra-cost paint colors. Time will tell whether these massive discounts ($24,000 is about the price of a new Hyundai Kona) will allow the brand to trim down excess inventory. The Ocean's launch has been dotted with problems, including loss of power while driving, and the National Highway Traffic Safety Administration (NHTSA) opened a preliminary probe into the crossover due to four complaints "alleging unintended vehicle movement." Meanwhile, all is not well at Fisker. The company laid off about 15% of its staff earlier in March 2024 and warned that it risks running out of money. It later paused production of the Ocean, which is built in Austria by contract manufacturer Magna, because it's sitting on a global inventory of around 4,700 unsold cars worth over $200 million. Its shares were suspended from the New York Stock Exchange (NYSE) as talks with a major carmaker, widely rumored to be Nissan, fell through. Fisker has reportedly hired advisers for a potential bankruptcy.

Fisker assets will be auctioned tomorrow, here's the situation today

The remains of Fisker Automotive - which might not even include the name and logo - are supposed to finally be sold off tomorrow, but the scene before the auction is anything but clear. As as reminder, the two bidding parties are Wanxiang and Hybrid Tech Holdings. Hybrid Tech was denied an emergency motion in court last week that would have lifted an earlier ruling that limited how much debt it can use to try and buy Fisker. The limit remains at $25 million. Bloomberg says that the winner's spoils are not so much the cars or the design but the 36 patents involved (about half are pending) as well as an established vehicle brand in both the US and China. The chief economist for the National Automobile Dealers Association, Steven Szakaly, told Bloomberg that, "[the auction is] not about the manufacturing, It's about the intellectual property." The patents include things like the electric drivetrain tech, the solar technology and the design of the mustache grille. Fisker executives have been hit with a $20-million lawsuit that claims they misled investors. And because lawsuits are easier to get than a DOE loan, a number of Fisker executives and the company's legal team have been hit with a $20-million lawsuit that claims Fisker misled investors. The Wall Street Journal reports that Fisker is accused of withholding information that would have given a clearer picture of Fisker's financial situation. According to the WSJ, the lawsuit says the Fisker team kept the negative news quiet, "because they needed huge sums of additional cash to fund Fisker Automotive to position the Company for a sale or an initial public offering...without plaintiffs' and other investors' money, Fisker Automotive was not a viable company." Meanwhile, Hybrid Tech Holding has hired a former Ford executive, Martin Leach, to be better prepared to manage the Fisker assets should Hybrid Tech win tomorrow. Leach told Reuters that he has been working on a business plan "for months," and it starts with the company taking care of current Karma owners and re-engaging suppliers. The most difficult challenge, we imagine, will be with A123 Systems, which supplied the Karma's batteries but was bought by Wanxiang over a year ago. Leach said that Hybrid could get new batteries from Boston Power. Featured Gallery Fisker Atlantic News Source: Bloomberg, The Wall Street Journal, Reuters, AP Green Fisker Electric Hybrid PHEV lawsuit fisker atlantic martin leach

Fisker creditors want a repayment do-over

In February, the Chinese company Wanxiang won control of Fisker Automotive at a bankruptcy auction for a final bid of $149.2 million. The sale meant that Wanxiang would now have to deal with all of the creditors claiming that Fisker owed them money. Those individuals and groups had a combined $1 billion in claims, and they're not happy with how the bankruptcy is shaking out. In April, a settlement was announced that would see those unsecured creditors get back pennies on the dollar. The unsecured creditors are telling the bankruptcy court that they want the judge to take away control of the bankruptcy proceedings from Fisker and implement a new repayment plan. The request was filed by a committee representing the creditors, which said it could have the new plan submitted in a matter of days, if the judge agrees with the request. The committee says there are "unreasonable demands" in the current repayment plan, such as a big paycheck for Fisker's chief restructuring officer, worth $750,000. If the judge allows the unsecured creditors to file a new plan, it will result in the "best possible outcome," the filing said. We admit we're feeling a bit confused and dragged along by the Fisker bankruptcy proceedings. And we're quite sure that the new owners have got to be fed up as well, since they're likely to be in a bit of a time crunch if the company's really going to re-start Karma production next year.