Fisker Gets Its Bankruptcy, Customers Get Recalls Fully Paid For

The ongoing drama with EV upstart Fisker has finally realized at least a portion of closure as U.S. Bankruptcy Court approved Fisker’s plan late last week. That plan, which includes selling off Fisker’s remaining inventory, some 3,000 Ocean SUV models, as well as crucial vehicle data and support services to allow owners the ability to continue driving their SUVs, is just the tip of the iceberg for the brand and its owners.

Everything Must Go

Just a few days ago, CarBuzz reported about the Fisker Owners Association (FOA) getting some good news that American Lease, a New York brand that deals with Lyft and Uber vehicle leasing, would be purchasing those leftover Ocean models for $46.25 million. That’s approximately $13,900 per vehicle, which is a massive cut compared to its original $38,999 msrp.

More importantly, in order to keep these vehicles in working condition and grant users full access to all of their features, including software updates and remote access, American Lease agreed to shell out an additional $2.5 million over a five-year period. The additional dollars will help cover technical support and various services, including important over-the-air updates.

Related

Fisker’s Downfall Proves EV Startups Can Fail Even With All The Right Ingredients

The FOA also established 23 capable North American shops that can work on the Ocean EV, with access to the Fisker After Sales Tool (FAST) system being a major part of that process. In addition, Fisker had initially informed website visitors that they were only able to cover the cost of parts involved in multiple recalls that included faulty door handles, braking issues, and faulty water pumps, among other problems, and that owners would have to pay for the labor associated with those repairs.

Add CarBuzz to your Google News feed.

The Department of Justice, however, forced a change of heart when they confirmed that a manufacturer is required to rectify recalls with no cost to the customer, according to the NHTSA.

The Battle Has Just Begun

That takes care of the remainder of inventory and support for Ocean owners, at least for the next five years, but the Fisker shareholders need to be answered to as well. The group has accused Henrik Fisker, the brand’s CEO, and his wife Geeta, who served as the chief financial and operating officer, of securities violations, along with misleading the public about Fisker’s financial status as the company experienced multiple setbacks. This prompoted an SEC investigation and though the bankruptcy was approved, their personal legal battles have just begun.

Related

What’s Going To Happen To The Fisker Alaska Truck And Fisker Ronin Supercar?

Here’s what we think will happen to the models Fisker had in its pipeline.

Any leftover Fisker assets, from intellectual property to manufacturing facilities will likely be put up for sale, with money earned being handed over to CVI Investments, Fisker’s secured creditor, and its investment manager, Heights Capital Management. The initial bankruptcy filing took place in June, shortly after talks regarding a partnership with Nissan to produce a line of vehicles had fizzled. Fisker’s vehicle production was put on hold and some of its staff laid off.