Fisker files for bankruptcy after rescue talks collapsed

Fisker has filed for bankruptcy, bringing an end to months of attempts to rescue the electric car start-up.

The firm raised concerns over its ability to continue operations in February 2024, having made a loss of $463.6m during the fourth quarter of last year.

In March, it paused production of the Ocean SUV and halted development of the smaller Pear hatchback while it sought a rescue deal with a “large auto maker”.

Talks with that manufacturer, widely understood to have been Nissan, collapsed. That deal would have seen Fisker receive a $400 million cash injection in exchange for access to the platform underpinning the Alaska, its future electric pick-up.

Fisker slashed prices for its existing stock of Oceans following the end of talks, as it sought to raise quick cash and prolong its operations.

The company will now work to develop a plan to repay its creditors. It has declared assets with a total value of between $500 million and $1 billion, and debts between $100 million and $500 million, as part of its bankruptcy filing.

The company said in a statement that it is in “advanced discussions” regarding financing and the sale of its assets.

It added: “We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North American and Europe.

“But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently.

“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.”

The pause in production of the Ocean – which is assembled by Magna Steyr in Graz, Austria – remains in effect. Fisker said it will also ensure it continues to pay employee wages, “certain customer programmes” and other vendors.

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