Troubled Fisker Has A Way To Keep Your Ocean EV On The Road

It’s been a wild ride for Fisker, with the burgeoning automaker facing plenty of financial trouble, legal trouble, and, eventually, bankruptcy in the past few months. And no one has felt the stress more than those who spent their hard-earned cash on the Ocean, Fisker’s once-promising electric SUV.

Now it seems that help is on the way; the automaker has struck a deal with creditors that will enable it to liquidate assets while continuing to provide assistance and service to Ocean owners, reports the Los Angeles Times.

A Brief Respite For Ocean SUV Owners

After many failed attempts at financial rescue, Fisker filed for Chapter 11 bankruptcy in June after it failed to reach an agreement with an unnamed automaker (rumored to be Nissan) that would have helped the marque stay afloat. The new agreement – reached in the US Bankruptcy Court last week – means Fisker management will remain at the helm for an unspecified amount of time.

This decision will allow Ocean owners to breathe a sigh of relief. Not converting to Chapter 7 means Fisker can rectify issues customers have with the Ocean which, according to earlier reports, were numerous. It’s worth noting the National Highway Traffic Safety Administration was also against the conversion to Chapter 7 bankruptcy because there are open recalls for the Ocean.

Creditors Still Waiting For Their Cut

With the bankruptcy, Fisker’s assets and intellectual property will be sold off to pay creditors what is owed to them. This is traditionally something that creditors decide on, but the new plan will give the owners association a say on the sale of Fisker’s intellectual property. Part of the company’s assets include the designs and computer code required to manufacture the vehicles.

Ocean owners will require access to Fisker’s cloud software, which is necessary for the OTA updates for the vehicle software. Shamah added that long-term service and parts availability will be decided outside the bankruptcy proceedings. While this will come as a relief to Ocean customers who may have been worried that they bought an expensive paperweight, it remains to be seen what will come of these cars in the future – with little to no after-sales support, we don’t expect them to stick around for long. Per the LA Times, the remaining Ocean inventory (3,321 vehicles, to be exact) was scooped up by American Lease for $46.25 million, which leases out vehicles to Uber and Lyft. With proper service support, this could pay off to be a great investment, but without it? Only time will tell.

Source:
Los Angeles Times