DailyTech The Fall of Fisker Automotive A $35 000 Loss on Each …

17 Мар 2014 | Author: | Комментарии к записи DailyTech The Fall of Fisker Automotive A $35 000 Loss on Each … отключены
Fisker Karma

Fisker spent $1.4 on the production of one car, and is now broke

Automotive is in a financial crisis talks of a bankruptcy filing and employee layoffs. But what caused the fall of Fisker?

dug deep to find out what wrong at every corner. It more than 30 people to the company (not including Henrik Fisker and Bernhard and referred to a review of five worth of confidential investor It even read internal of Energy (DOE) emails and from a congressional hearing in

What Reuters found is Fisker spent $1.4 on the production of one car, and is now broke.

found that there many reasons that led to s demise. For starters, Fisker about 2,450 Karmas plug-in hybrid luxury sedan, which was the company s production vehicle) from to 2012, but internal financial show that the automaker at least $35,000 on each

That wasn t the Karma s issue. Delays in the start of production and a huge reduction in meant forced Fisker to pay higher prices for many and sub-systems. It was also stuck penalties to suppliers and to Valmet, built the Karma in Finland.

In Fisker racked up $200 in bills to suppliers by late because the automaker asked to meet challenging deadlines, yet was in giving suppliers technical and punctual payments.

Fisker delivered 200 Karmas to customers in and another 1,600 in 2012, was a huge disappointment compared to its plans to sell 15,000 a year starting in 2009.

The s design was another huge that cost Fisker of dollars. Engineers were to stick with Henrik s original design, even they discovered performance that would later last-minute fixes and tweaks. last minute fixes between $50 million and $100 of Fisker s parts inventory

These design changes led to cost overruns and late of components while Fisker other parts.

One of the fixes was the front-end exhaust which was noisy and reduced Instead of just putting the pipe in the back ahead of a thin, steel box was designed to enclose the exhaust system. But said this last-minute fix the company millions of dollars.

Fisker and the Karma

Aside Karma issues, the company had a problem. Henrik Fisker and had salaries of $600,000-$700,000 a year even after the automaker off hundreds of employees in 2011 and

In May 2011, Fisker co-sponsored a grand prix party on a yacht in the Monte Carlo The party, which featured with flecks of gold and an by Prince Albert of Monaco, Fisker between $80,000 and

The DOE also caught some for the way the Fisker loan was handled. wondered whether the DOE offered oversight, and if Fisker s board of (mainly large investors) the company correctly.

But according to DOE, it was receiving stories from Fisker production milestones and spending, and did it could with the misinformation. For Fisker told DOE on November 1, that it needed additional equity or loan money, or it would run out of cash completely in three days. But at the end of the month, it that a mid-month investment of $37 bumped it up to $20 million in cash.

In the 14, 2011 letter to shareholders, said it had a capitalization of nearly $2 But that included $720 in private equity that had been spent; the $529 in DOE loans, which Fisker had access to $192 million of at point, and $700 million for the plant (which was inflated at 30 the actual purchase price).

Fisker Karma

An DOE briefing from December 19, explained a plan to keep an eye on s progress regarding the Delaware The briefing mentioned that it be ready to build cars by the end of but a separate email in late 2011 between DOE officials that the Atlantic (Fisker s model) would not be ready for in the Delaware plant until

However, investors got the wrong in the December 14 shareholder letter, stated that Fisker continue with a 2013 time frame for the Atlantic. But in 2012, all 26 workers were off at the Delaware plant.

Private-sector had put $525 million into the from May 2011 to August due to Fisker s bending of the truth in instances, such as the $2 billion value.

To make matters DOE cut off Fisker s loans in June and Fisker didn t make any of it for nine months. An anonymous executive told Reuters the DOE never told Fisker it was cutting off access to the loan; the just stopped seeking the during that period of He also said that told investors in the December letter that there t a good chance that the would meet the financial as part of the DOE loan.

Fisker received $529 in DOE loans in April 2010 for the of high-tech vehicles. But DOE froze the due to unmet milestones in June with only $192 drawn at that point.

s situation crumbled further year when Henrik stepped down as executive citing several major with Fisker Automotive management on the business strategy.

same month, the company was to put its U.S. workers on furlough and laid off 75 percent of its workforce (or 160 employees). Fisker even a federal lawsuit that the company of not giving employees notice of the mass layoffs. the U.S.

Worker Adjustment and Notification Act, workers are to have 60 days notice being laid off.

The cherry on the cake was Fisker s DOE payment at the end of April.

Fisker is for a buyer, and last month, VL (a venture between former Motors Co executive Bob Lutz and Gilbert Villarreal) and China maker Wanxiang Group a proposal to buy Fisker Automotive for $20 in a prepackaged bankruptcy deal.

Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma
Fisker Karma


Tagged as:

Other articles of the category "Interesting":

Our partners
Follow us
Contact us
Our contacts



About this site

For all questions about advertising, please contact listed on the site.

Catalog ALL Electric Cars and hybrid/ News and Information about Electric Car and Electric Vehicle Technologies, batteries for vehicle catalog with specifications, pictures, ratings, reviews and discusssions about Electric and Hybrid cars - Green energy