Summary
- Fisker went bankrupt earlier this year and its assets will be liquidated, including 3,000 unsold Ocean EVs
- Volkswagen faced other issues in October, with limited supplies of its ID series and a recall affecting nearly 100,000 ID.4s
- Fisker sold more electric vehicles than Volkswagen in October, with 110 EVs registered compared to Volkswagen’s 92
- Fisker’s sales were boosted by steep discounts due to liquidation and the availability of unsold inventory
- Volkswagen’s sales were impacted by limited supplies of ID series models and a production stop due to a recall issue
Article
Fisker Bankruptcy and Liquidation
Fisker went bankrupt earlier this year, leading to the liquidation of its assets including around 3,000 Ocean EVs sitting in inventory. Despite this setback, the company managed to move more electric vehicles than Volkswagen in the United States during the month of October. The bankrupt automaker’s remaining inventory of unsold Ocean electric crossovers were purchased by New York-based American Lease after the liquidation plan was approved by a judge in October.
Registration Data Analysis
In October, Fisker had 110 EVs registered in the U.S., while Volkswagen registered 92. Although these numbers were not outstanding, they were enough to outperform other brands like Fiat and Jeep. The surprising victory of Fisker over Volkswagen in the EV registration data led to further investigation into the reasons behind this unexpected outcome. Despite Volkswagen being one of the largest carmakers in the world, it faced challenges in the EV market during this period.
Volkswagen’s EV Selling Challenges
Volkswagen faced challenges in the EV market in October, with only two electric models available in the United States – the ID.4 crossover and the ID.Buzz minivan. The ID.Buzz became available in the U.S. in October when the configurator went online, but limited quantities were supplied to dealers initially. Furthermore, production of the ID.4 was halted at the Chattanooga plant at the end of September due to a recall affecting nearly 100,000 ID.4s in the U.S. Volkswagen issued a stop-sale for the ID.4 due to faulty electronic door locks for which there was no fix available.
Factors Affecting EV Sales
The combination of factors such as significant discounts on Fisker EVs that were no longer in production due to bankruptcy, along with manufacturing issues for Volkswagen’s ID.4, contributed to Fisker’s surprising victory in EV registrations over Volkswagen in October. Despite Volkswagen’s reputation in the automotive industry, the company faced challenges with its electric models during this period. The competition between Fisker and Volkswagen in EV registrations highlighted the complexities of the automotive market and the impact of external factors on sales performance.
Electric Vehicle Market Trends
In October, several automakers experienced varying levels of success in the EV market. General Motors and Hyundai saw significant gains in registrations, while Ford’s Mustang Mach-E, Rivian’s R1S, and Tesla’s Model Y reported declines in registrations. The overall trends in the EV market during this period reflected the competition among automakers to establish a strong presence in the growing electric vehicle segment. Despite the challenges faced by some companies, the EV market continued to show promise for the future.
Conclusion
The EV market in October presented a mix of successes and challenges for automakers, with Fisker’s unexpected triumph over Volkswagen in EV registrations raising questions about the factors influencing sales performance. As industry dynamics continue to evolve and competition intensifies, automakers are faced with both opportunities and obstacles in capturing market share and driving growth in the electric vehicle segment. The interplay of factors such as production issues, recalls, and bankruptcy proceedings underscores the complexities of the automotive industry and the need for companies to adapt to changing market conditions to stay competitive.
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