By on March 18, 2013

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.

According to Reuters, the strings attached to the $529 million loan – such as commiting to restoring jobs and production capacity at American plants on a set timetable – were too daunting for Geely.

“Those obligations are too complicated to handle and seem too risky,” one of the sources said. “The plan’s footprint was too big. It would take a long, long time to fill up the plant with products and restore employment there.”

Originally, Geely was said to be eyeing Fisker’s Delaware plant as a means of producing Volvos in the United States. As of now, Dongfeng is said to be the sole bidder in the final round. Meanwhile, Fisker has yet to produce any cars since July of 2012, and is looking for funding to help produce the smaller Atlantic plug-in sedan.

Get the latest TTAC e-Newsletter!

10 Comments on “Geely No Longer Interested In Fisker...”


  • avatar
    gslippy

    As I’ve mentioned before, I didn’t think Geely or Dongfeng would be so dumb with their money as to buy Fisker.

    Henrik Fisker’s departure sealed the non-deal.

    Fisker Automotive is going down.

    • 0 avatar
      thelaine

      So if the they go bankrupt, who pays? Oh, right. Speaking of Dong…

    • 0 avatar
      highdesertcat

      Actually, I’m surprised by this development.

      I was inclined to believe that Geely on its own, or with a partnership of Chinese co-investors, would scoop up Fisker and press on to bigger and better things in the world of EVs, particularly with an eye towards what the Asians will be driving in the next ten to twenty years.

      Now that Geely has pulled out, and there must have been a pretty darn good reason for them to pull out, I have to agree with gslippy that Fisker, as we know it, is going down.

      But that doesn’t mean that someone else won’t pick up the pieces of Fisker out of liquidation at a very, very cheap fire-sale price. And without any strings attached!

      Seems to me the better strategy is to break from “the strings attached to the $529 million loan” by forcing Fisker into liquidation, thus negating any preconditions and mandates that existed.

      If that is the goal of the Chinese re: Fisker, I’d have to say, “Smooth move, Exlax!”

  • avatar
    blowfish

    It doesn’t look good, is like doing 2 rounds of defrib, is slowly becoming a basket case.
    Ponying up 500 mill is no chump changes. Uncle Sam is becoming a high maintenance mother in law in a shotgun marriage.

  • avatar
    cargogh

    I guess “Henrik Fisker Pulls The Chute” story ruined the deal, but at least the Chinese read the comments.

  • avatar

    I think Fisker is a giant exercise in ego extension, and this is why it has failed.

    And that the car is stupid.

    And we will never see the “Atlantic” second model.

  • avatar
    ranwhenparked

    They’re probably better off with Dongfeng, they’re a much bigger company and can better afford to absorb losses & make the needed investments. That said, Geely had a better chance of actually utilizing the capacity at Wilmington on something approaching a timely schedule. I really don’t know what DFM can make of Fisker, I mean they get the technology of course, but there’s got to be cheaper ways of getting that.

  • avatar

    I don’t know why anyone would buy Fisker unless they think there’s some kind of value to the brand name. It’s not like they developed their own tech for the drivetrain. That was done by Quantum, a military vendor that was one of Fisker’s original investors.

    • 0 avatar
      kuman

      well… honda can buy it and make next gen legend out of it… they just need to replace the drivetrain with their owns.

      If i have the money, i’ll buy it and places corvette’s engine on it… or some snazzy euro diesel at the same time ditch the battery, reduce its overall weight and free up some interior space. Then sell it as Jag / 5 series or E Class

    • 0 avatar
      kuman

      well… honda can buy it and make next gen legend out of it… they just need to replace the drivetrain with their owns.

      If i have the money, i’ll buy it and places corvette’s engine on it… or some snazzy euro diesel at the same time ditch the battery, reduce its overall weight and free up some interior space. Then sell it as Jag / 5 series or E Class alernatives


Back to TopLeave a Reply

You must be logged in to post a comment.

Subscribe without commenting

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Jack Baruth, United States
  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Vojta Dobes, Czech Republic
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, Abu Dhabi
  • Mark Stevenson, Canada
  • Cameron Aubernon, United States
  • J Emerson, United States