Henrik Fisker paired up with Hong Kong billionaire Richard Li to get his company back. Fisker is a co-founder of severely troubled Fisker Automotive. Li and Fisker are trying to buy the U.S. government loan to Fisker at a big discount. Henrik Fisker was ousted in March. (Read More…)
Fisker is worth around 200 Karmas at retail. “A team including former General Motors Co executive Bob Lutz and China’s largest parts maker is looking to buy Fisker Automotive for $20 million, a fraction of the “green” car company’s estimated worth almost a year and a half ago,” Reuters says. (Read More…)
When former TTAC Editor-in-Chief and now Editor emeritus Edward “Op-Ed” Niedermeyer wrote an op-ed in the Wall Street Journal and warned that GM’s center of gravity shifts more and more to China, GM’s retired multi-role fighter Bob Lutz reamed Ed via Fortune. Now, Bob Lutz himself appears to be an accessory in a deal that transfers U.S. government-financed technology to China for pennies on the dollar. Says Deepa Seetharaman, in-house alternative drivetrain expert at the Reuters Detroit office, in her in-depth article: (Read More…)
Critics of the current administration have pointed to the impending bankruptcy of Fisker Automotive and the recent suspension of operations at taxi maker Vehicle Production Group as examples of why the government shouldn’t be picking winners and losers in it’s zeal to promote alternative energy. The DoE effort under which those two companies received financing is the Advanced Technology Vehicle Manufacturing Program, ATVM. Putting aside political ideologies, contrary to the image given by the apparent failure of Fisker and VPG, the ATVM program actually has a pretty decent track record when it comes to picking winners and losers.
Most of our readers probably already know the broad strokes of the Fisker story. If you’re interested in the finer details of the history of the extended range EV company that appears to be circling the drain, GigaOM, a site that covers the investment side of tech companies, has published a fairly comprehensive 4,000 word look back at Fisker by Katie Fehrenbacher. (Read More…)
Congressional Republicans blasted current and former Fisker executives, as well as an official from the Department of Energy over missed milestones for their Department of Energy loans, which saw the company repeatedly fail to meet obligations while continuing to receive taxpayer money.
The U.S. government has managed to recover $21 million in cash from Fisker, funds that will go towards repaying the nearly $200 million its received from the government in the form of loans.
PrivCo, a private corporate intelligence firm, has published a 20+ page dossier on Fisker’s seemingly strong ability to fundraise for itself, while failing to do a good job of actually creating cars. With Fisker teetering on the verge of bankruptcy, the results are staggering; with just under 2000 units sold, Fisker burned through an estimated $1.3 billion in venture capital, taxpayer-funded loans and private investor funds.
California Congressman Darrell Issa wants to investigate the Department of Energy’s loans to nearly-bankrupt Fisker after the company laid off most of its employees and retained bankruptcy lawyers last week.
On Friday, Fisker fired most of its rank-and-file employees, 160 out of a total 210, and promptly got into hot water for doing so. The law firm Outten & Golden filed a class-action lawsuit for not giving employees a 60-day notice under California’s WARN act. (Read More…)
While Damon Lavrinc at Wired’s Autopia makes the observation that the revived Detroit Electric company seems to be following the Tesla playbook, launching their company with a car based on an electrified small Lotus, Detroit Electric CEO Albert Lam insists that his team is using a different business model than Tesla and that they have learned from other EV startups’ mistakes. Lam also said there was no comparison between Detroit Electric and Fisker, which appears to be headed to bankruptcy soon, having just furloughed all but 50 employees. Detroit Electric says they are following the model of Apple (on Lam’s CV along with a stints at Lotus and Sun Microsystems) focusing on design and engineering with much of everything else contracted out. Lam pointed out, at a press conference following the reveal of the SP:01 sports car, that buying and equipping a factory to build an original platform, as Tesla is doing, or even contracting out assembly of an original platform, as Fisker has tried to do, both require up front investments of hundreds of millions, perhaps a billion dollars or more, requiring quick success and substantial early sales just to break even. (Read More…)
Fisker has laid off nearly all of its rank and file employees. Reuters reports that 160 people were out of a job as of today, while 53 senior employees will stay on, apparently to help find a buyer for Fisker’s assets. Fisker is also hoping to re-negotiate a loan payment to the Department of Energy, due on April 22nd.
Fisker did put its entire workforce, all 200 of them, on furlough, “while it continues to search for a strategic partner,” Reuters says. That search is not going so well. And quite possibly, the workforce will never come back. (Read More…)
When Henrik Fisker left last week, all we knew was that he “disagreed on business strategy” with the management, code for “board-room brawl, founder leaves in a huff.” Now we know where the disagreement was. It was whether to ask Uncle Sam or Auntie Zhang for money. (Read More…)
Fisker is still likely to be rescued by a Chinese savior, but it won’t be Geely. Reuters is reporting that Fisker’s outstanding obligations to the Department of Energy have scared off the Chinese auto maker, leaving Dongfeng as the sole suitor for the beleagured EV maker.
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