Electric SUVs | American manufacturer Fisker declares bankruptcy

(New York) The American manufacturer of electric SUVs Fisker has placed itself under the protection of American bankruptcy law, it announced in a press release, against a backdrop of inflation and production difficulties.


Posted at 6:55 a.m.

Fisker “has filed for protection under Chapter 11” (bankruptcy law, Editor’s note), and is “in advanced discussions with investors” concerning in particular the sale of its assets, the manufacturer announced in a press release, during the night from Monday to Tuesday.

“Like other companies in the electric vehicle sector, we have faced various headwinds, both in this market but also macroeconomic, impacting our ability to operate effectively,” the company continues.

“After evaluating all options for our business, we determined that proceeding with the sale of our assets under Chapter 11 was the most viable path for the business,” she wrote.

Fisker, in difficulty for months, had already decided to interrupt the manufacture of the Ocean, its electric 4×4, production of which was launched in 2022.

PHOTO MIKE BLAKE, REUTERS ARCHIVES

The company entered the stock market in 2020, via a merger with a subsidiary of the investment company Apollo, valuing it at the time at $2.9 billion. To differentiate itself, Fisker highlighted the use of ecological or recycled materials for certain parts of its vehicle.

Last year, Fisker raked in about $273 million in revenue, and produced 10,193 Ocean SUVs, according to its website.

Its CEO, Henrik Fisker, spoke during the presentation of the annual results at the end of February of a difficult year 2023, including supply delays for certain parts, but also labor problems, and the consequences of inflation on demand.

The company was in discussions at the time with another auto company that could bail it out, but negotiations broke down in March.

The electric vehicle sector faces strong competition from manufacturers in China. In this context, Tesla, the main manufacturer in the United States, announced around 14,000 layoffs in mid-April.

-

-

PREV Wall Street modestly in the green, after a record for the Dow Jones – 07/18/2024 at 4:40 p.m.
NEXT Alexandre Allegret-Pilot, LR-RN MP for Gard, suspected of having tried to abuse a winegrower in distress