EV manufacturer Fisker files for bankruptcy

The electric vehicle (EV) manufacturer Fisker has filed for bankruptcy in the US after failing to secure investment.

Reuters reports that it is looking to sell its assets and restructure its debt, after succumbing to rapid cash burn to deliver its Ocean SUV in the US and Europe.

The company, founded by automotive designer Henrik Fisker, had flagged doubts about its ability to remain in business in February and a month later, its attempts to secure an investment from what was believed to be Nissan failed, forcing it to rein in operations.

In April, Fleet News reported that it had cut the price of its Ocean SUV by up to £14,000, in a bid to shift existing UK stocks.

The carmaker applied reductions to stocked models, with the cheapest example offered for £32,170. All vehicles were sold on the basis of limited aftersales support.

“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 today (Tuesday, June 18).

“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."

It is also in advanced talks with financial stakeholders for debtor-in-possession financing, the company said, without giving further details.

The company's operating unit, Fisker Group, filed for Chapter 11 bankruptcy in Delaware, listing estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million. It has about 200-999 creditors, per the court filing.

After Fisker failed to secure funds from another carmaker it started exploring options, including in- or out-of-court restructurings and capital markets transactions.

It paused manufacturing as well as investments in future projects until it secured an auto partnership and said it would cut its workforce by about 15%.

Fisker made more than 10,000 vehicles in 2023, less than a quarter of its forecast, but delivered only about 4,700.

Its cars are under regulatory investigation for certain incidents, including a probe started by the US auto safety regulator last month.