Mar 25
Many Americans looked at the loans that the federal government handed out to help usher in green vehicles using electricity rather than oil dubiously. The problem with many of the … Continue reading
Feb 17
Fisker asset auction over with Wanxiang American Crop as the highest bidder
Posted in: Today's ChiliFisker was one of the auto manufacturers that received huge loans from the US federal government to create green vehicles. Things started going bad for Fisker last summer when it … Continue reading
Nov 24
Fisker, the company behind the Karma hybrid sports car, filed for Chapter 11 bankruptcy this weekend. The company hasn’t had very good luck these past few years. The company originally set out to make green cars sexy, but it has been floundering for the better part of two years due to car fires, faulty batteries, […]
Nov 23
Fisker files for Bankruptcy, hopes selling company will restart Karma sales
Posted in: Today's Chili
The writing has been on the walls for awhile, but now the scrawlings read true: Fisker Automotive has filed for Chapter 11 bankruptcy. For almost a year, the company’s been sliding down a slope of financial ruin. Production was halted, workers were furloughed, then laid off and the Department of Energy even seized $21 million from the company after becoming concerned it wouldn’t be able to pay of its $192 million federal loan.
The bankruptcy filing will help facilitate the company’s sale to Hybrid Technology, an investor group that has agreed to buy the remainder of the DOE’s original loan, now valued at $25 million. Hybrid says the deal is the first step to putting the Karma back into production (and back on the market), but notes that it still has a lot of work to do. “As we continue to examine Fisker’s opportunities, we will be making decisions about the structure and footprint of the new business,” a Hybrid spokeswoman told the Reuters. It’ll likely take some time for the hybrid sports sedan to make it back to the showroom. Hopefully, it’ll give the firm time to work out some of the original Karma’s faults.
Filed under: Transportation
Via: Autoblog
Source: Reuters
Apr 23
Energy Department expects Fisker to default, pulls funds from reserve account
Posted in: Today's ChiliOn April 5, we reported that Fisker automotive had laid off 75-percent of its workforce, with a lawsuit following a few days later over the last-minute nature of the mass layoffs. The auto maker had run into a string of problems, and appeared to be making some last-ditch efforts to avoid bankruptcy. In light of this, the Department of Energy has taken $21 million from a reserve account, expecting the manufacturer to default on its loan.
The announcement was made Monday evening, with a statement released by the Department of Energy saying that in the light of the “obvious difficulties” Fisker is facing, the department has elected to pull the funds “on behalf of the taxpayer.” The money in the reserve account is from investors and sales, and will be applied to the amount of the loan. The action happened 12 days ago.
Like others before it, Fisker received an Advanced Vehicle Technology Loan as part of a federal program from green initiatives. The loan was for $529 million, but the auto maker only received $193 million of that before the Energy Department put a stop on the loan due to the manufacturer’s failure to meet specific requirements. The company was supposed to make its first loan payment this month.
Fisker hasn’t commented on the situation. According to the Wall Street Journal, the company has taken on the services of bankrupcty attorneys, but is seeking a way to stay in operation. Currently there is a lawsuit against the company by former employees who are seeking 60 days of wages and benefits, which they say they are owned because Fisker was required by law to supply a 60-day written notice ahead of the mass layoff.
[via Wall Street Journal]
Energy Department expects Fisker to default, pulls funds from reserve account is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.
Apr 22
Fisker just can’t catch a break. As if enduring the layoffs of three out of every four employees and the resignation of its founder wasn’t unsettling enough, it’s now come to light that the Department of Energy recently confiscated the company’s $21 million reserve account in an attempt to recoup some of the government’s loan. Fisker’s first payment on the $192 million federal loan was due Monday, but the Energy Department revealed that it actually took the money 12 days beforehand, simply due to the company’s high risk of default — a move it characterized as an “appropriate action on behalf of taxpayers.” If you’re thinking the writing’s now on the wall, you’re correct… the WSJ reports that Fisker has hired a bankruptcy attorney, and the company admits that it’s actively in search of a new owner. Will luck swing in Fisker’s favor next time around? Place your bets.
Filed under: Transportation
Via: TNW
Source: WSJ
Apr 08
Fisker, maker of the beautiful Karma hybrid luxury vehicle, had a rough time last year, reportedly having fire issues with some of its cars and then losing hundreds of them during Hurricane Sandy. On April 5, we reported that the company had laid off about 75-percent of its workforce in what seemed to be a last-ditch effort to pull out of bankruptcy. It has surfaced that the same day the layoffs took place, a lawsuit was filed against Fisker.
Fisker had a moderate 213 employees, 160 of whom it gave the boot with little warning last week, with the lawsuit stating that they should have received a 60 day written notice in advance by law. Because Fisker failed to do this, it is said to have violated the Worker Adjustment and Retraining Notification Act, and thus class-action status is being sought in the legal proceedings.
The lawsuit was initiated by Sven Etzelsberger, a former employee, via Outten & Golden of California. The lawsuit wants Fisker to pay up 60 days’ of wages/benefits for all who were let go. Fisker hasn’t replied to comment requests, and hasn’t said anything official about the lawsuit. Such a mandate would place additional financial strain on a company that is already on the verge of going under.
Like several other green initiatives, Fisker received tax-payer money via a federal program (Advanced Vehicle Technology Loan, in this case) to the tune of $529 million, of which it only got $193 million before the kibosh was put on the loan over failure to meet certain terms. Of that $193 million, the company is supposed to make its first loan payment this month.
[via USA Today]
Fisker Automotive hit with lawsuit due to last-minute layoffs is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.
Apr 05
Fisker, the automotive company that has been selling its hybrid-powered Karma vehicle for over a year now, is reported to be laying off 160 employees, which is approximately 75% of the entire company’s staff. Rumors were flying around earlier this morning, but it appears to be a done deal, and this could spell the end for the luxury hybrid auto manufacturer.
According to Reuters, Fisker says that the layoffs were a “necessary strategic step” in the company’s efforts to “maximize the value of Fisker’s core assets.” This is apparently a last-ditch effort for Fisker, hoping to conserve cash and prevent filing for bankruptcy, but the lookout on the company looks bleak at best. The company declined to speak on the possibility of bankruptcy.
Approximately 160 rank-and-file employees were let go without receiving severance packages, but 53 senior managers and executives were asked to stay on board in order to help pursue buyers for the company’s assets, according to an anonymous source. However, since Fisker is government-based, the remaining executives are making negotiations with the US Department of Energy to work out a new repayment plan that Fisker owes them.
Fisker has faced some trials and tribulations as of recently. The company was hit hard by Hurricane Sandy, destroying 300 Fisker Karma vehicles. On top of that, owners have been reporting a handful of issues with the car, including certain ones catching on fire and seeing random break-downs. And according to one ex-employee, Fisker knowingly sold half-baked cars to customers. Ouch!
[via Reuters]
Fisker reportedly lays off 75% of workforce is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.
Apr 05
Fisker announces steep layoffs, cuts company down to 25 percent of its workforce
Posted in: Today's Chili 
Fisker Automotive has been seeing its troubles go from bad to worse, and its now announced its most drastic steps yet to keep the company afloat. In a statement released this afternoon, the company confirmed that it is making a “significant reduction” in its workforce, which it says will ultimately leave it with approximately 25 percent of its employees — Bloomberg pegs the number of layoffs at about 160 based on its sources, down from the 200 it employed as of last week. Fisker’s statement also notes that the company is continuing its efforts to secure a strategic alliance or partnership, but says it had reached the point where layoffs became unavoidable. As Bloomberg mentions in its report, Fisker has to date only sold 2,500 of its electric vehicles, which have been beset by delays and recalls in recent years.
Filed under: Transportation
Mar 27
Fisker’s cash reserves have been in trouble ever since its Department of Energy loans were frozen, and now its putting its US workforce on furlough to keep money in the bank while it searches for a partner with deep pockets. “This is a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements,” said Fisker, which has over 200 employees in America, in a statement concerning the unpaid leave. Considering that battery woes and other mishaps have contributed to keeping assembly lines quiet, current activity levels are indeed low. Reuters says the automaker hasn’t built a car since July, and it’s coming up against a federal loan payment in late April. According to the outlet, Fisker was aiming to partner with Chinese auto companies that could bolster its finances, but talks are said to have crawled to a stop. Regardless, the firm is still on the lookout for an investor to fuel the production of its Atlantic hybrid.
Filed under: Transportation
Source: Reuters
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