Electric vehicle maker Fisker has filed for bankruptcy protection under Chapter 11. Second electric startup to do so Last year too, industry leaders Struggle to lure more buyers Beyond the early adopters of the technology.
Fisker Group Inc. said in a filing in U.S. Bankruptcy Court in Delaware that it has estimated assets of between $500 million and $1 billion. It estimates liabilities are between $100 million and $500 million, and there are 200 to 999 creditors.
“Like other companies in the electric vehicle industry, we have faced a number of market and macroeconomic challenges 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 moving forward with the 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 also 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 to fail under the leadership of Henrik Fisker.
Other startups such as Fisker and Lordstown Motors Corp., based in Manhattan Beach, California, have sought to compete with industry leaders such as Tesla and the big automakers in Detroit that have aggressively entered the market.
However, electric vehicle sales have slowed as manufacturers have attempted to bring electric vehicles into the mainstream. These sales have been curbed one after another. Lack of infrastructurerising inflation has also Taking a car loan is expensive,
According to J.D. Power, the number of electric vehicles grew by just 3.3% during the first three months of this year to about 270,000, far below last year’s 47% growth that fueled record sales and a 7.6% market share. Under the leadership of Tesla, This confirms automakers’ fears that they have acted too early in attracting EV buyers. The share of EVs in total US sales fell to 7.15% in the first quarter.
Because of this huge price cuts And job cuts In leading companies like Tesla.
Rivian, another electric startup, said this year that it stop construction work like him $5 billion manufacturing plant to speed up production in Georgia and save money.
Lordstown sought bankruptcy protection The company faced financial difficulties last summer.
Fisker bankruptcy filing comes as Biden administration takes over An effort to dramatically increase EV sales As part of President Joe Biden’s agenda to slow climate change. Republicans, led by presumptive nominee Donald Trump, are promoting EVs as a way to slow climate change. a campaign issueDeriding Biden’s efforts to promote electric vehicles as a “revolutionary plan” is unfair to consumers and amounts to government overreach.
Auto companies Billions of investment in factories And battery technology will accelerate the shift to E.V.s to reduce pollution, fight climate change — and meet the Environmental Protection Agency’s requirement that 56% of all new vehicle sales be electric by 2032.
Henrik Fisker’s first attempt at starting an electric car company also ended in 2013. That 2013 collapse ended a long downfall that began after Fisker $529 million loan received From the US Department of Energy.
It was later discovered that the U.S. Department of Energy did not realize for four months that the company, Fisker Automotive Inc., had missed a key production target required as part of a half-billion-dollar government loan. The mistake allowed Fisker to receive an additional $32 million in government funding before the loan was suspended in June 2011.
Fisker Inc. and other U.S. subsidiaries, as well as subsidiaries outside the U.S., are not currently included in the bankruptcy filing. Fisker says it is in discussions with financial stakeholders about debtor-in-possession financing and selling its assets.
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AP writer Matthew Daly in Washington, D.C. contributed to this report
