Fisker EV files for bankruptcy protection

Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year

 

 

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FILE – Fisker Automotive’s Fisker Karma, a sports luxury plug-in hybrid car, is displayed at the 2010 Los Angeles Auto Show in Los Angeles, Nov. 18, 2010. Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection in a period when even the top manufacturers in the industry are struggling. Its operating subsidiary, Fisker Group Inc., said in its filing that its estimated assets were between $500 million and $1 billion. (AP Photo/Damian Dovarganes, File)

 

Electric vehicle maker Fisker filed for Chapter 11 bankruptcy protection, the second electric startup to do so in the last year as even industry leaders struggle to lure more buyers beyond the early adapters of the technology.

Fisker Group Inc. said in a filing with the U.S. Bankruptcy Court in Delaware that its estimated assets are between $500 million and $1 billion. It estimated liabilities are between $100 million and $500 million, with between 200 and 999 creditors.

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“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the company said in a prepared statement late Monday. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

The 7-year-old electric car company was founded by designer Henrik Fisker, who has been its chairman and CEO. He designed the company’s 2022 Ocean all electric SUV as well as the luxury plug-in hybrid Karma that was launched in 2011. Fisker is also known for leading the development of the BMW Z8 sports car.

It is the second automotive venture led by Henrik Fisker to fail.

Fisker, based in Manhattan Beach, California, and other startups like Lordstown Motors Corp., sought to take on industry leaders like Tesla, and big automakers in Detroit, which have entered the market aggressively.

However, EV sales have slowed as manufacturers have attempted to push electric vehicles into the mainstream. Those sales have been curbed both by a lack of infrastructure, as well as rising inflation that have made taking on car loans more expensive.

Electric vehicles grew only 3.3% to nearly 270,000 during the first three months of this year, far below the 47% growth that fueled record sales and a 7.6% market share last year, according to J.D. Power. The slowdown, led by Tesla, confirms automakers’ fears that they moved too quickly to pursue EV buyers. The EV share of total U.S. sales fell to 7.15% in the first quarter.

 

 

 

 

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