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As Fisker heads toward liquidation, creditors fight over assets

NEW YORK — Electric vehicle startup Fisker is headed towards a liquidation, attorneys said in U.S. bankruptcy court on Friday, as two creditor factions previewed a battle over which group will be paid first.  Fisker filed for bankruptcy protection in Delaware on Monday after burning through cash in an attempt to ramp up production of its Ocean SUVs. The company initially said it would seek additional financing and continue "reduced operations," but Fisker's attorney Brian Resnick said at the hearing in Wilmington the company does "not currently anticipate being able to obtain financing."  Resnick told U.S. Bankruptcy Judge Thomas Horan that the company planned to liquidate its assets, and it has reached a tentative deal with a single buyer for all of its 4,300 vehicles.  The California-based company, founded by automotive designer Henrik Fisker, was never profitable, with about $273 million in revenue in 2023 and a net loss of $940 million.  Fisker owes over $850 million to two groups of bondholders, and attorneys for the larger group accused a minority faction led by Heights Capital Management of seizing control of Fisker's debt in November through a "suspect" transaction with Fisker.  At the time, Fisker was late in providing audited financial statements due under its debt agreements, and Heights used that "minor, technical default" to claim all of Fisker's assets as collateral on its bonds, Alex Lees, an attorney for other bondholders, said.  "They basically handed the whole business over to Heights," Lees told Horan. "Fisker has been liquidating outside of this court's supervision, basically for one creditor's sole benefit."  Lees said that Fisker should have filed for bankruptcy in November. His group intends to challenge the November agreement that put Heights at the front of the line for repayment in Fisker's bankruptcy, Lees said.  Heights' attorney Scott Greissman said Lees' claim was "outrageous" and that Heights tried to help Fisker survive.  "There may be a lot of disappointed creditors, but none more than Heights," Greissman said.  Greissman said the expected sale of Fisker's fleet would pay only a "fraction" of Heights' $185 million in debt. That would leave little hope of repayment for other creditors.  Linda Richenderfer, an attorney for the U.S.

Lamborghini Huracan Sterrato and GMC Acadia driven | Autoblog Podcast #837

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Electric, John Beltz Snyder. They're both jazzed after driving the off-road-ish and totally sublime Lamborghini Huracan Sterrato. John recently drove the new GMC Acadia, Greg spent some time in the Toyota Camry, and they also discuss Autoblog's long-term Subaru WRX. In the news, the Porsche 918 Cayman and Boxster are reportedly ending production, while it's officially the end of the road for the Nissan GT-R and Volvo S60. Fisker has officially filed for bankruptcy. Cadillac has shown off a couple cool Blackwing special editions in honor of Le Mans. Finally, we reach in the mailbag and help a listener pick a sporty convertible in this week's Spend My Money segment. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #837 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving: 2024 Lamborghini Huracan Sterrato 2024 GMC Acadia 2025 Toyota Camry Long-term 2023 Subaru WRX Porsche 718 Cayman and Boxster allegedly end production in October 2025 2024 Nissan GT-R the final year for the U.S. market 2025 Volvo S60 the last model year for the sedan in the U.S. Fisker files for Chapter 11 bankruptcy 2025 Cadillac CT5-V Blackwing 'Le Monstre' and CT4-V Blackwing Petit Pataud limited editions celebrate Le Mans Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: Podcasts Cadillac Fisker GMC Lamborghini Nissan Porsche Subaru Toyota Volvo Coupe Crossover SUV Electric Hybrid Luxury Off-Road Vehicles Performance Supercars Sedan

Fisker files for Chapter 11 bankruptcy in Delaware

Reuters reports that Fisker filed for Chapter 11 bankruptcy protection on Monday, pointing Henrik Fisker's second independent automotive act into what looks like the same dramatic close as his first act. The Chapter 11 filing, as opposed to Chapter 13, suggests company efforts to stay in business by shedding assets and working out deals with creditors. On the former front, the paperwork filed in Delaware lists estimated asset value at between $500 million to $1 billion against estimated liabilities of between $100 million and $500 million. On the latter front, Adobe, Google, and SAP are listed as among the 20 largest creditors. A company spokesperson said, "Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently." While that is indisputably true, Fisker's much larger problem was launching a woefully unfinished Ocean SUV, full of novelties and beautiful outside, almost entirely undercooked inside. Fisker is not the only EV maker to have done this, nor is Fisker the only EV maker to come apart after having done so. CEO Henrik Fisker blamed software issues, the same bane that's tripped up multi-billion-dollar blue chips like Volkswagen and Volvo and General Motors in the EV space, and continues to do so. Fisker, though, unlike those other companies, had no stable of traditional moneymaking products to keep the company out of the Valley of the Shadow of Death.     It's not clear if Fisker has a way out of that valley, either; prospects from the outside look dim. Fixing the Ocean, addressing the NHTSA investigations, and restarting production would require enormous sums of money, and it's not clear Fisker has the expertise and will to do those things even if it got the money. Rebuilding the incinerated goodwill of the past few months among buyers and interested shoppers — the nadir being trying to sell Oceans to Fisker employees for $20,000 plus taxes and fees — would cost even more in time and funds. At the time of writing, CarFax lists 173 Fisker Oceans for sale nationwide, all low miles, prices ranging from $26,000 to $46,000.

Fisker recalls all 2023 Oceans, but for a rather weird reason

Recalls come in all sizes and styles, and that's actually the crux of this recall for all 2023 Fisker Oceans. Yes, the recall, according to NHTSA documentation, affects every single one of the 6,864 examples of 2023 Oceans on the road. But the good news is that, rather than something that could cause a crash or severe injury, this is for fixing the fonts and colors of some warning lights. You see, the Federal Motor Vehicle Safety Standard code dictates the size and style of font for warning lights, as well as the colors for said lights, with each color corresponding to certain warnings and their importance. All automakers have to follow these rules, and when they're incorrect, they need to be fixed. In the case of the Ocean, the recall notes that the font size for the brake, park and ABS warning indicators were too small, the brake warning lights were in amber and not red, and some of the tire pressure warning light operation weren't correct. These do sound nitpicky, and unsurprisingly, no injuries or damages have occurred due to this issue, but the regulations are in place to ensure that warnings are universally understandable, and that they're in colors and sizes that are easy to read and understand. The good news is that all of these will be rectified easily. The warning lights display on the car's screens, so an over-the-air update will go out with revised font sizing, colors and operation. All of this should bring the Oceans into federal compliance. And of course the update will be completely free, and because it's over-the-air, won't require a trip to a dealer or service center. Letters will be sent to owners on June 30 to alert them to the recall, and customers with questions can call Fisker at 1-844-347-5371 with regard to recall number TSB70062404.

Fisker cancels roadside assistance service in the United States

Fisker is reportedly in talks with several companies about a potential take-over, but a deal hasn't been announced yet and its troubles aren't over. The brand has notified owners of the Ocean, its only production model, that it will no longer provide a roadside assistance service. "We have an important update regarding our Roadside Assistance services that we want to share with you. Despite our best efforts, we regret to announce that Fisker Roadside Assistance is no longer available," the brand wrote in an email sent to its customers in May 2024. Several owners posted a screenshot of the email on Reddit, and a spokesperson for Fisker confirmed that roadside assistance is no longer available in our market in a statement sent to website CarScoops. Roadside assistance has already been canned in markets across Europe. Details about the service still appear on Fisker's website. Roadside assistance was available in all 50 states, 24 hours a day, and 365 days a year. The plan was valid for six years or 60,000 miles after the sale date, whichever came first. It covered a wide range of problems including mechanical disablement, a loss of power, a flat tire, and a lockout. Crucially, the fine print notes that Fisker "reserves the right to revise or discontinue specific roadside assistance benefits at any time without notice or refund, reimbursement, or credit to the owner." Fisker's recent financial problems are well documented, but the company seemingly believes there's a light at the end of the tunnel. It added three stores to its American dealer network in May 2024: Newport Fisker in Orange County, Fisker of San Jose, and Belford Fisker in New Jersey. These outlets will initially help the brand liquidate its inventory of left-over 2023 cars, which received a big price cut earlier in 2024. However, Fisker reportedly sent its staff members an email warning of company-wide layoffs that could start on June 28, 2024. Green Fisker Electric

U.S. opens another probe into Fisker's cars, over brake issue

  The National Highway Traffic Safety Administration on Friday opened a preliminary probe into 6,813 Fisker Ocean SUVs built in 2023, after complaints that the automatic emergency braking system used in the electric vehicles had activated inadvertently. The regulator said its Office of Defects Investigation has received eight complaints alleging activation of the braking system without an apparent roadway obstruction in the vehicle's forward path, resulting in sudden vehicle deceleration. Three of the complaints alleged an injury, the safety agency said. NHTSA's preliminary evaluation will look into the scope and severity of the potential problem to assess its impact on safety. The regulator could close the investigation into Fisker without taking any potential action. The probe adds to Fisker's woes as its Ocean SUVs were already under investigation by the NHTSA for three prior incidents. Last month, the safety regulator received complaints that the doors of the company's EVs sometimes failed to open. Fisker had flagged "going concern" doubts in February, followed by delisting of its stock from the New York Stock exchange and the collapse of talks with a large automaker for a potential deal in March. The startup had said in April it failed to make an interest payment of about $8.4 million on some notes due in 2026 during a 30-day grace period. The cash-strapped firm initiated insolvency proceedings for its Austrian unit on Tuesday, as it looks for strategic options to raise money to meet its debt obligations. 

A small door ding became a nightmare for a Fisker Ocean owner

Fisker has been floating in the danger zone, teetering on the brink of complete collapse, for months now. That state of limbo looks dramatic from a business standpoint, but the impact on Fisker owners is coming into clearer focus. A recent story from an early Fisker Ocean buyer highlighted the challenges faced by people who bought into the upstart brand, as a simple door ding turned into a nightmare. Someone hit Joy Wanner’s Ocean, causing minor damage to its door. While that would be an annoying but straightforward fix for most cars, FiskerÂ’s state of near-collapse made the process a real headache. A few weeks after the incident, WannerÂ’s insurance company totaled the Ocean, though the damage only amounted to a small surface crease and a broken door hinge, with a total cost of just $910. The insurance adjuster admitted that the total could be much higher, though, as he was completely unfamiliar with the brand and its vehicles. Though she was initially excited to invest in Fisker and its admittedly good-looking EV, the experience soured Wanner on new car companies for good. She told CarScoops, “It was an emotional rollercoaster. One day it would run fine, and the next, a new warning light would blink or ding. It was so frustrating to pay that much money for a car, only to get annoyed every time you used it.” Adding salt to WannerÂ’s wounds, she also experienced many of the issues other Fisker owners reported. She hadnÂ’t received a title from the automaker and said it was impossible to get any answers or help. The insurance company ultimately paid out $53,303 for the Ocean, but that paled in comparison to the price Wanner paid for the hassle of owning the SUV. “We lost over $20,000 investing in this startup EV and I cannot say goodbye fast enough,” she said on Facebook. “The delivery delays, mismanagement of paperwork, reporting issues, and getting case numbers that disappear into thin air, the mysterious warning lights and maddening warning sounds, being trapped inside the vehicle, an unreliable outdated navigation system, one cheaply made barely operational key fobÂ… This vehicle fell very, very short of our expectations and well below my high standards. I hope Henrik Fisker loses every dime he has, and I wish the rest of you the best of luck.”    

Fisker tells its staff that four companies are interested in buying it

Fisker is nearing bankruptcy, but there might be a light at the end of the long, dark tunnel it's been traveling in for the past few months. Four companies have shown an interest in buying the troubled brand, according to comments made during a meeting by founder Henrik Fisker. "We still have some time to get other offers on Fisker. We do have four car companies that have signed NDAs," the executive said during what's described as an "all-hands meeting" for staff members held earlier this month. "However, they obviously need time to get some diligence." Business Insider, who reported the comments, adds that Fisker didn't reveal the identity of the four companies. He specified that they're car companies, but that's a vague term that could refer to anything from a small startup with shady backing to a major group that's been around for over a century. Similarly, there's no word on how long it will take for these companies to decide whether to make an offer on Fisker. In spite of its setbacks, including damning reviews of the only model it has managed to bring to production, a National Highway Traffic Safety Administration (NHTSA) probe, and reports of thousands of canceled orders, Fisker seemingly remains fairly attractive to investors. Nissan briefly considered buying the carmaker earlier in 2024 but the talks ended without a deal, according to an earlier report. Deutsche Bank is helping Fisker look for takeover candidates, and the company has already turned down one offer that wasn't "sufficient," its CEO said. Fisker hasn't commented on the report. Meanwhile, industry trade journal Automotive News (subscription only) reports Henrik Fisker has listed his personal home — an 11,800-square-foot mansion in Hollywood Hills — for sale at $35 million, though you can also rent it for $125,000 per month. The publication notes $35 million is more than Fisker's market cap, which stood at $33.7 million when it was delisted from the New York Stock Exchange.  

Edmunds bought a Fisker Ocean, warns others not to make the same mistake

We're going to guess you were not considering buying a 2023 Fisker Ocean SUV, even at the recent deeply discounted prices. However. On the microscopically remote chance you were considering acquiring an Ocean, Edmunds suggests you reconsider. In fact, the car-buying site doesn't merely suggest, it headlines a piece on the battery-electric SUV it bought in January, "Do not buy a new Fisker Ocean; Fisker's uncertain future makes buying an Ocean too much of a gamble." What makes the Edmunds piece more interesting than information you already know or mere piling on is that the site details much of its time with the Ocean, from the sorely under-baked delivery version that they paid $69,012 for to the slightly more livable but still misfit version missing promised features and recently hammered by at least 43% in depreciation. Similar to the issues Edmunds had with its Chevrolet Blazer EV, the Ocean's dash loved to throw up warning lights and errors before the OS 2.0 software update. The key fob had separation issues, occasionally needing to touch the door handle to unlock the SUV; Edmunds didn't mention the door latch issue the NHTSA is investigating. The Ocean's audio system enjoyed giving the silent treatment, and the e-motors wouldn't hold the vehicle when stopped on a hill.   The 2.0 software apparently fixed the fob, the dash lights, and infotainment responsiveness, while adding features like data on solar panel energy and trailer sway control. But the anticipated adaptive cruise control didn't materialize, and the new brake hold feature relies on a fiddly driver's-seat sensor that can put the Ocean in Park if the driver shifts their weight in the seat.     So, you can get an Ocean in dealer inventor today for fixed pricing as low as $24,999, no matter the options. Edmunds advises: Don't. Meanwhile, the latest report is that Fisker has withdrawn its financial guidance for the year while it tries to scare up a rescue plan. Even brand-specific forum Fiskerati jumped ship — it's now a general EV-focused site called CH4RGE. The All Things Fisker forum remains, though, and its current trade-in prices thread is brief, wild reading, from dealers unwilling to take the car, to initial offers in the $20,000s to $40,000s dropping to zero, to a few posters determined to stick it out with their delivered cars.  It's not like the Ocean's alone in foibles, though. The Issues.

NHTSA opens preliminary probe into Fisker Ocean over door failure

The U.S. auto safety regulator said on Wednesday it had opened a preliminary probe into Fisker's 2023 Ocean SUVs after complaints that the doors of the electric vehicles sometimes failed to open, the latest setback for the cash-strapped startup. The regulator said its Office of Defects Investigation received 14 complaints alleging an intermittent failure of the latch and handle that prevented the opening of the driver, front passenger and/or rear doors. Some of the reports also alleged the emergency override mechanism also failed to open the door. The National Highway Traffic Safety Administration's (NHTSA) preliminary evaluation will look into the scope and severity of the potential problem to assess its impact on safety. The regulator could close the investigation into Fisker without taking any potential action. Fisker, whose stock was delisted from the New York Stock Exchange last month over failure to comply with listing norms, did not immediately respond to a request for comment. NHTSA is also investigating Fisker for two prior incidents — one regarding issues with the 2023 Ocean SUV's brakes and the other pertaining to unintended vehicle movement. Fisker is facing mounting uncertainty after talks with a large automaker for a potential investment collapsed last month, forcing it to look for options including in- or out-of-court restructurings and capital market transactions. The company said last week it would cut the prices of its 2023 Ocean SUV models to boost sales and raise capital to meet debt obligations as it faces depleting cash reserves. Fisker, like other EV makers, is grappling with intense competition, as well as customers holding back big-ticket purchases due to higher borrowing costs and economic uncertainty. The company said on March 18 that it would pause vehicle production for six weeks.