Last week, Rueters reported that Wanxiang, a Chinese parts supplier, had won the bankruptcy auction for Fisker Automotive. The bid was valued around $149.2 million. The deal comes to close after a bidding war between Wanxiang and Hybrid LLC — a group who includes Richard Li, a Fisker investor and Hong Kong billionaire. In November, Fisker asked for Hybrid Technology LLC to purchase the bankrupt company for $25 million, but creditors objected the deal in November and brought Wanxiang into the case in December.
Today Delaware, U.S. Bankruptcy Judge Kevin Gross approved of the sale to Wanxiang. He stated that the auction “shows that a fair process is a good thing.” (Read More…)
Reuters reports that U.S. Bankruptcy Judge Kevin Gross ruled that an auction for the assets of defunct hybrid sports car maker Fisker Automotive will be held on February 12. The auction will be held in the New York offices of the law firm of Kirkland & Ellis and attendance will be limited to representatives of Fisker, the unsecured creditors’ committee, and the two bidders, the American unit of China’s Wanxiang Group, an automotive supplier, and Hybrid Tech Holdings, which is affiliated with Hong Kong investor Richard Li. Other potential bidders have until February 7th to tender offers. (Read More…)
Wiesmann, the German maker of BMW powered retro sports cars, looked like it was going to join other European specialist automakers that have declared bankruptcy like Cosworth, Gumpert, Artega, Lola and the London Taxi Company, but the small company has apparently cleaned up its balance sheet and has applied to have its insolvency proceedings dismissed. Wiesmann has been operating since 1993 in Dülmen, Germany. No further explanation was given in the company’s announcement beyond stating that the application to dismiss the bankruptcy was “due to abolition of the insolvency reasons”. A meeting with Wiesmann’s creditors is scheduled for mid-December.
Sergio Marchionne’s plans to merge Chrysler and Fiat have been delayed because Fiat failed to convince a Delaware Chancery Court judge to set the value of Chrysler stock owned by the UAW’s health care fund known as VEBA. Judge Donald Parsons rejected Fiat’s request to find that a call-option agreement covering at least 54,000 Chrysler shares valued the stock at slightly less than $140 million. That decision means that the dispute over the shares’ value will now proceed to trial. (Read More…)
The video above is the closest we’ll ever have to enjoying a World’s Wildest Police Chases segment featuring the Carbon Motors E7. Somewhat lost in the breaking news of March regarding the bankruptcy of Fisker Automotive and Coda was the demise of the nation’s other other startup vehicle manufacturer, the Carbon Motors Corporation. Although Bertel correctly predicted Carbon’s death shortly after they failed to qualify for a DOE loan last year, the company maintained a brave public face and soldiered on defiantly until the end of March. As late as mid March they were announcing the introduction of two new vehicles: an armored truck called the TX 7 and a skateboard shaped drone called the CT 7. Two weeks later they would be slipping out of their Indiana state taxpayer funded digs without so much as a “Dear John” letter to the desperate Hoosiers who needed the jobs they’d promised
I’d been watching and waiting for an official announcement that the company had liqudated before poking the body with a stick. That moment finally came on June 7 with a Chapter 7 filing in Indianapolis. The bankruptcy filing shows that Carbon Motors had assets of less than $19,000 and outstanding liabilities of over $21 million. It seems that the dream of a purpose-built police car is dead.
Yesterday, battery acolytes who hate to see stories of EV makers going bankrupt complained about a TTAC story of another EV maker going bankrupt. They said the story was unfair, because Miles Electric made electric essential services vehicles, used for parking enforcement and the like, whereas bankrupt EV makers such as Coda tried to sell real cars,so where’s the connection?
Our story actually went to great pains trying to explain this promising niche, in an attempt to say “well, if it doesn’t work here, where will it?”
The electric vehicle revolution has eaten another one of its children. “U.S. electric car manufacturer Miles Electric Vehicles filed for chapter 11 bankruptcy protection early on Tuesday, court documents showed, highlighting the difficulties faced by battery-powered vehicles in gaining wide market acceptance,” says Reuters. (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.
NOTE: I received the following email from Saab Automobile Parts North America. As I was not aware of the recent details behind Saab’s parts/service operation (my bad) I felt obligated to share this, unedited, with everyone. – SM
We read, with great interest, your latest Piston Slap post and the many comments in response to “The Last Saab = good Deal?” We wanted to take this opportunity to let you know about Saab Automobile Parts North America, the exclusive authorized provider of Saab Genuine Parts in North America. Venues like yours help us to get the message out that Saab Genuine Parts and Service are available. (Read More…)
I got my 2007 9-3 serviced at the Falls Church, VA Saab dealership. My question: They had new (2011) 9-5s for $20,000 off the sticker price. Almost half off. Are they a good deal? Would you buy one? (Read More…)
Being a Suzuki dealer is surely one of America’s least enviable jobs; franchise holders must choose whether to accept a cash settlement and a contract to provide parts and service in exchange for their franchises, or whether they want to fight the matter in court.