US electric vehicle (EV) maker Fisker filed for bankruptcy protection late on Monday, planning to sell its assets and restructure its debt after succumbing to rapid cash burn to deliver its Ocean SUVs in the United States and Europe.
Reuters noted other EV makers such as Proterra, Lordstown and Electric Last Mile Solutions have also gone bankrupt in the past two years due to depleting cash reserves, fundraising problemsn and challenges in ramping up production due to global supply chain issues.
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Fisker cars were also under investigation by US regulators.
Reuters said the company, founded by automotive designer Henrik Fisker, had last February flagged doubts about its ability to remain in business while, a month later, attempts to secure an investment from a big automaker failed, forcing it to rein in operations.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” Fisker said in a statement cited by then news agency on Tuesday.
“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.”
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By GlobalDataIt was also in advanced talks with financial stakeholders for debtor-in-possession financing, the company reportedly said, without providing further details.
Reuters said the operating unit, Fisker Group Inc, filed for Chapter 11 bankruptcy in Delaware, listing estimated assets of US$500million to $1bn and liabilities of $100 million to $500 million. It has about 200-999 creditors, according to the court filing.
After Fisker failed to get funds from a large automaker, which Reuters had reported to be Nissan, it started exploring options, including in- or out-of-court restructurings and capital markets transactions.
It paused manufacturing [under contract at Magna Steyr in Austria] as well as investments in future projects until it secured an auto partnership and said it would cut its workforce by about 15%.
Reuters said Fisker made over 10,000 vehicles in 2023, less than a quarter of its forecast, but delivered only about 4,700.
