Home News Fisker Automotive goes under the hammer

Fisker Automotive goes under the hammer

Fisker Automotive goes under the hammer


Fisker Automotive, a company that manufactured plug-in hybrid electric
vehicles has gone under the hammer. The company had to suspend the
production of its first launch, a plug-in hybrid luxury sports sedan,
Karma, due to financial difficulties. Later, due to bankruptcy of its
battery supplier A123 Systems, the company filed for bankruptcy in
November, 2013 and agreed to get auctioned out, subject to the courts
approval. The auction was held on the February 12, 2014. It is not known
whether the company’s name and logo was included in the auction. Two
Chinese companies, Hybrid Tech Holdings and Wanxiang America, were the
main bidders for the California-based company’s assets including its
Wilmington plant which is valued at up to $50 million. Wanxiang, which had
also acquired Fisker’s battery provider, A123 Systems, in bankruptcy, beat
out Hybrid Tech at the auction. An official statement regarding the bid
amount has yet to be released. Wanxiang will have to pay off, along with
Fisker’s other debts, a federal taxpayer-backed loan of $168 million which
Fisker had borrowed to clear huge debts it owed to its landlord and web
designer. Wanxiang plans to bring Fisker Automotive back into production.
The hearing for the approval of Fisker’s sale to Wanxiang, originally
scheduled for the 15th February, 2014, has been postponed to 18th
February, 2014 and will be held in Wilmington.

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