Electric car manufacturer Fisker’s financial problems are coming to a head. In the fourth quarter, the company reported a net loss of $463 million on revenue of $200 million. In a statement to the stock exchange, Fisker warned that the company’s survival was at risk – after which the share price fell 37 percent to 74 cents. To reduce costs, the company wants to cut 15 percent of its jobs.
Fisker founder: bailout negotiations
Fisker founder Henrik Fisker commented on the current results during a conference call, stating that he was negotiating a strategic partnership with a “major car manufacturer.” This partnership would include an investment in the company as well as collaboration on development and production in North America, as well as sharing the dealer network.
Fisker recently changed its sales strategy from direct sales to dealer sales and says it has 13 dealers in North America and Europe, with an additional 250 interested. Fisker did not provide further details about the investment or the name of the group involved.
Three new models planned
Still, the manufacturer is optimistic: Fisker plans to expand its model range with the Pear small car, the Alaska pick-up and the Ronin sports car. However, given the current problems, it is questionable whether this will happen.
In 2023, the company experienced some setbacks: of the planned 36,000 cars, only more than 10,000 were built and only 4,700 delivered. “2023 was a challenging year for Fisker, with supplier delays and other issues that prevented us from delivering the Ocean as quickly as we had planned,” Henrik Fisker said at the annual results press conference.
Despite some challenges, Fisker plans to deliver about 22,000 vehicles this year.
What to do when a car manufacturer closes?
Many come, some go: a number of young car brands from China are currently looking to conquer the European markets – and not all of them will be able to hold their own. But every now and then the sudden end also affects established manufacturers. What then?
First of all, the good: bankruptcy does not have to mean the end of the brand. And if a manufacturer goes bankrupt, you can often get the remaining cars cheaper.
However, buying such a leftover car can come with risks:
- If the manufacturer is liquidated as a legal entity, claims under the manufacturer’s warranty can no longer be asserted. Unless the warranty provides for a direct claim against companies in the manufacturer’s network.
- In Germany, the dealer is responsible for ensuring that repairs with the necessary spare parts are possible for up to twelve years after a model series has been discontinued. If the spare parts are no longer available, the customer can claim compensation.
SubscribeIf the dealer goes bankrupt, you lose the contact person for warranties and guarantees. A manufacturer’s warranty is then worth its weight in gold: in such a case you can still claim it to cover the repair costs.
However, it is then no longer possible to request a replacement vehicle or to cancel the purchase contract, for example due to insufficient repair of defects.
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
