Summary
– Fisker is seeking court approval to sell its remaining Ocean electric SUVs for $14,000 each to American Lease
– The original price of the Ocean SUVs ranged from $38,999 to $61,499
– Due to quality issues, Fisker issued three recalls for the Ocean in the last month alone
– Fisker had ambitious plans to launch additional EV models before filing for bankruptcy
– A potential buyer with significant funds could revive the discontinued EV models
Article
Fisker, which is currently going through Chapter 11 bankruptcy proceedings, has sought approval from the court to sell its remaining inventory of Ocean electric SUVs to a leasing firm at a significantly reduced price. The company aims to transfer 3,321 Oceans to American Lease for $14,000 each, a fraction of their original price. Initially, American Lease had offered to purchase 2,100 vehicles before increasing the offer to the total number of available Ocean SUVs.
The Fisker Ocean was initially priced starting at $38,999 for the base Sport grade, with higher-end versions priced at $52,999 and $61,499. However, due to inventory concerns, Fisker slashed prices by up to $24,000 and halted production at Magna’s facility in Graz, Austria. Although production commenced in November 2022, deliveries to customers in the U.S. only began six months later in mid-2023. Despite the slow rollout, the EV faced quality issues, leading to multiple recalls, including one related to malfunctioning door handles affecting over 8,000 vehicles in the U.S.
In the final months prior to the bankruptcy filing, Fisker continued to discuss plans for a transition to a franchised dealership model and the development of new EV models such as the Pear, Alaskan pickup truck, and Ronin convertible. Although these plans were ambitious, a potential buyer with sufficient resources could potentially revive these projects. The company’s financial difficulties ultimately led to the decision to sell off the remaining inventory of Ocean SUVs at a discounted price to secure some revenue.
Fisker’s decision to sell off the Ocean SUVs at a reduced price reflects the challenges faced by the company in managing its finances and maintaining operations. The bankruptcy filing and subsequent sale of inventory highlight the impact of cash flow issues and production delays on the business. Despite the setbacks, there is potential for the revival of Fisker’s ambitious plans for expanding its EV lineup under new ownership with adequate financial backing.
The sale of the remaining Ocean electric SUVs at a discounted rate to American Lease represents a strategic move by Fisker to generate revenue and address its financial obligations during the bankruptcy process. The significant price reduction on the vehicles reflects the urgency to liquidate assets and streamline operations amidst the financial crisis. The potential acquisition of Fisker by a buyer with the resources to revitalize the brand and its product lineup could offer a new lease on life for the EV manufacturer and its ambitious plans for future growth and expansion in the electric vehicle market.
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