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.”
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.
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:
Reports by Bloomberg suggest that Fisker could sell up to an 85 percent stake to Chinese automaker Dongfeng. The automaker apparently bid $350 million for the beleaguered plug-in car maker, according to sources close to the company.
Bankrupt A123 Sold Off To China - Washington Says It's Cool, Now What About Those 63,000 Jobs In Michigan?
U.S. government funded and nonetheless bankrupt battery maker A123 will be Chinese. China’s Wanxiang emerged as the successful bidder in December. All the deal needed was U.S. government approval. The deal has been approved, says Reuters.
Battery maker A123 was sold to China’s Wanxiang Group, but the company won’t come with more government money. The DOE won’t give A123 Systems Inc. the balance of a $249 million grant, a department official tells Reuters. Wanxiang, in the meantime, let it become known that it did not ask for the grant money, and that it did not anticipate receiving it.
While Johnson Controls and China’s Wanxiang Group have competing bids to acquire the assets of advanced battery maker and Fisker supplier A123, a more serious battle is occurring in U.S. Bankruptcy Court in Delaware between the startup automaker and what is arguably its most important vendor. A123 wants the bankruptcy judge to void its contracts including those for supplying batteries to Fisker. That could stop production of Fisker’s only car, the Karma.
When we reported that battery maker A123 had filed for bankruptcy, a lot of people thought that Johnson Controls is in control, and that Chinese Wanxiang is out. No and no, writes Reuters star car reporter Norihiko Shirouzu. Wanxiang still wants A123, and Johnson Controls is just one bidder in a Chapter 11 process, says Reuters.
U.S. Senators long have warned of an exodus of American know-how to China. Last year, Michigan Senators Debbie Stabenow and Carl Levin complained to United States Trade Representative Ron Kirk about another attempt by China ”to illegally gain an unfair advantage over the U.S. automobile industry that will cost our country jobs. The United States must respond strongly to stand up for American businesses and working families.”
A year later, the exodus is in full swing, and it starts to hurt. This time, it pains automakers to see how Chinese companies are getting their hands on taxpayer-funded secrets.
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- SCE to AUX "a future in which V8-powered muscle cars duke it out with EVs for track superiority"That's been happening for years on drag strips, and now EVs are listed in the top Nurburgring lap times.I find EV racing very boring to watch, and the lack of sound kills the experience. I can't imagine ever watching a 500-mile EV race such as Daytona or Indy, even if the tech or the rules allow such a race to happen.As for owning an electric muscle car, they already exist... but I've never owned a muscle car, don't want one, and can't afford one anyway. For me, it's a moot question.
- MaintenanceCosts I don't and realistically won't drive on track, but I think the performance characteristics of EV powertrains are just plain superior on the street. You get quicker response, finer control over the throttle, no possibility of being out of the powerband and needing a time-consuming shift, more capability in the speed range where you actually drive, and less brake heat. The only "problem" (and there are many situations where it's a plus, not a problem) is the lack of noise.
- JMII After tracking two cars (a 350Z and a C7) I can't imagine tracking an EV because so much of your "feeling" of driving comes from sound. That said you might be able to detect grip levels better as tire sounds could be heard easier without the roar of the engine and exhaust. However I change gears based mostly on sound so even an automatic (like a C8) that would be a disappointment on track. Hearing an engine roar is too important to the overall experience: so tracking an EV? No thanks!I've driven an electric go-kart around a track as my only point of reference and its weird. It sort of works because a kart is so small and doesn't require shifting plus you still hear the "engine" whirring behind you. The sensation is like driving cordless drill, so there is some sense of torque being applied. You adapt pretty quickly but it just seems so wrong. With a standard ICE car, even a fast one, RPMs raise and fall with each shift so there is time to process the wonderful sounds and they give you a great sense of the mechanical engine bits working to propel you.I feel track toys will always be ICE powered, similar to how people still enjoy sailing or horseback riding as "sports" despite both forms of transportation being replaced by superior technology. I assume niche companies will continue to build and maintain ICE vehicles. In the future you'll have to take your grand-kids to the local track to explain that cars were once glorious, smoke spewing, noisy things. The smells and the sounds are unique to racing so they need to stay that way. Often a car goes by while your in the pits and you can identify it by sound alone... I would hate to lose that.
- Kjhkjlhkjhkljh kljhjkhjklhkjh "20 combined city/highway"...sigh
- MaintenanceCosts Not sure this is true for electrified products. The Pacifica Hybrid continues to have its share of issues and there have been some issues with the 4xe products as well.