By on March 28, 2013

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.

Then there is the issue of the DOE loan. No, not the matter of the DOE only paying out $193 million of the promised $529.  The DOE actually wants money back. There is a loan payment due in late April. The amount was not revealed.

Fisker urgently needs a savior, but those are hard to come by. Dongfeng dropped out of the bidding for Fisker, “because it would be too difficult to move production to China,” Reuters writes. Before, Geely had dropped out, which leaves Fisker with no interested suitor.

According to the story, Dongfeng was interested in Fisker’s barely used production facility, which it wanted to move to China. But soon it transpired that the loan was tied to the plant being in Delaware.

Chinese companies were a bit luckless buying car companies as a going concern. They are, however, good a snapping up the pieces after a bankruptcy. Which also would solve the problem of where the plant is located.

And just as I wanted to hit the “Publish” button,  news reaches us that Fisker  is looking into that option. According to the Wall Street Journal, “Fisker has hired restructuring lawyers at Kirkland & Ellis LLP to prepare for the possible bankruptcy filing, the people said, though no final decisions have been made on whether the auto maker will need to take that path. The cash-strapped company is still seeking buyers or investors that would help it avoid that outcome, the people said.”

We can always hope.

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23 Comments on “Electric Dreams Go Down The Drain: Fisker Twirling Faster...”

  • avatar

    Always Read Bertel First

  • avatar

    Sell them to a joint venture of Dogfish Head Brewery and Discover Card, the two best entities that exist in Delaware.

    The tie-ins are limitless: Range Anxiety IPA and a card that pays you 5% cash back every day at charging facilities.

  • avatar

    Furlough? So the Feds put in so much money they bought the place. Hard times at Dept. of Fisker.

  • avatar

    Wait a minute there… isn’t there supposed to be 1 million of these things on the road in less than two years?

    They can’t be furloughing anyone, they should be hiring!

    Otherwise how are well-off people going to be able to get their $7,000 tax credit?

  • avatar

    Somehow I could see this coming, any day, such is life in the Electric Car field!

  • avatar

    I’m not hoping for Fisker’s rescue. Bad ideas need to die. The Karma was nothing but a overpriced, bloated Volt with no corporate pedigree and bad performance.

    Why do people always hope for rescue from ‘the Chinese’, as though they’re stupid with money?

    • 0 avatar

      “Why do people always hope for rescue from ‘the Chinese’, as though they’re stupid with money?”

      It’s not hard to see signs that Chinese money being spent abroad will increasingly go to 2nd, 3rd, and 4th tier assets, as it has been, just as Japanese money for foreign investment did in the late 80s and the 90s. At some point, push comes to shove, and the backers want the money invested somewhere, anywhere, to increase yield.

    • 0 avatar
      comrade slow

      These cars are beautiful in person and full of very very cool cutting edge technology. I would have loved to see it succeed but I don’t understand why these electric auto manufacturer start-ups spend all of their money to develop a high priced luxury model that only appeals to an extremely niche market of wealthy techie beta testers. I think when you need as much as this company was trying to get in government subsidies to produce a product with such limited volume potential, the business model doesn’t really make sense.

      • 0 avatar

        “I don’t understand why these electric auto manufacturer start-ups spend all of their money to develop a high priced luxury model that only appeals to an extremely niche market of wealthy techie beta testers.”

        How do you think manufacturers of fancy schmancy horseless carriages started?

      • 0 avatar
        Brian P

        It is much, much, MUCH more difficult to engineer and produce a low-cost vehicle for everyone, than it is to go for the high-price-tag niche market first.

    • 0 avatar

      I am in favor of a Chinese company buying Fisker. It would bring money back into the US, and then when they finally tank, it would not be US investors losing their shirts.

  • avatar

    Hate to see people lose jobs. Don’t hate to see Fisker go. These were never real jobs, anyway. A real job is producing something the market will support. And if government is going to have to do it, then it would be better, and cheaper in the long run, just to hand out the money directly, like disability payments to people who are in no way disabled.

    • 0 avatar

      Read today’s Wall Street Journal to learn how many people are feasting at our Wise and Generous Government’s entitlement buffet.

      • 0 avatar

        Follow the money, the ones getting the hand outs are just the middle men in a massive cash grab.

        • 0 avatar

          EBT Cards accepted here.

          I don’t know if they have them where you live but in Detroit there are “you buy, we fry” places selling food. Food stamps can’t be used at restaurants, so they put the cost of the uncooked fish on their EBT card and then pay 50 cents or a dollar in cash for it to be cooked.

  • avatar

    Fisker deserves to fail. It is a car built entirely on style, completely lacking substance, and the style isn’t even that attractive.

  • avatar
    Piston Slap Yo Mama

    Why doesn’t Walden Schmidt invest some of his copious billions in Fisker? After all, he drives one.

  • avatar

    Such a beautiful car, it was nice to see an America company come up with something so exquisite in the high-dollar luxury field. But why did they have to ruin it with the power train the way they did (to get the Government to back it?)

    Can’t help but think of what this car could of been with a twin-turbo V8 under the hood.

  • avatar

    Writing was on the wall after A123. It’s a shame that those cars were lost in NYC after the storm. They’ll never be replaced and were probably a years worth of production.

    • 0 avatar

      I wonder if Wanxiang will gobble up Fisker, too? I can’t figure out what to think of that whole A123 debacle. On the one hand, you’ve got a failed company, subsidized by Mr. and Mrs. John Q Taxpayer, being sold off to a foreign entity…on the other, Wanxiang does have a fairly well-established American division that’s doing manufacturing right here in the States, so it’s not like all that money is flying across the Pacific Ocean.

  • avatar

    Why only Chinese supermen come to rescue when we need it, where are Russian oligarchs and Brazilian/Mexican tycoons? Russian oligarchs will not move manufacturing to Russia – manufacturing in Russia is too expensive believe it or not. And all oligarchs interested in is money laundering but isn’t DOE own interest in “green business” is money laundering? DOE gives loans to so called “green companies” which as a rule go bankrupt and money disappear except money never disappear – they end up in Swiss bank accounts and then go to Democratic Party funds. DOE does not support companies that contribute to Republican Party for the same reason.

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