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Ford EV Rival Fisker Files For Bankruptcy As Woes Continue

With demand for EVs failing to meet expected levels of growth as of late, automakers like Ford have trimmed back their planned investments in electrification, all while delaying the launch of select models and instead focusing on things like hybrids. However, for pure EV automakers like Rivian and Tesla, that isn’t an option, but perhaps no other such company has felt the financial pain as of late like Fisker – which sells the Ocean, a Ford Mustang Mach-E rival. Now, its woes continue to build.

According to Automotive News, Fisker has filed Chapter 11 bankruptcy in the U.S., a move that comes just a few weeks after the company’s Austrian unit – Fisker GmbH – filed for bankruptcy protection as well. “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” Fisker said in a statement. “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.”

Fisker Group Inc. currently has assets totaling between $500 million to $1 billion, along with liabilities or $100-$500 million, but it plans to continue to pay its employees, preserve customer programs, compensate its vendors, and keep its manufacturing pause in place during this process. The company has also long been seeking to form a partnership with a major automaker – though at least one deal reportedly fell through – and back in January, announced that it would be selling its vehicles via franchised dealers rather than direct online sales.

It’s unclear if Fisker will be able to survive these headwinds, but it remains optimistic that it will, at least. Meanwhile, Ford has delayed the launch of a couple of planned models, slashed its planned Ford F-150 Lightning production for 2024, and pivoted its focus to hybrids and smaller, cheaper all-electric vehicles. The Blue Oval’s all-EV competition is having a tougher time navigating these troubled waters, as both Rivian and Tesla recently laid off a number of workers as demand weakens, however.

We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Mf

    No surprise here. Lucid and Rivian are next.

    Now that all the legacy automakers are tooling up, demand has leveled off, and Tesla has a huge price advantage, these little start up companies are doomed.

    Reply
  2. Mark B

    It kind of reminds one of when the motor cars were first being created. Lots of fall out then with many builders. Back then it was shear unit cost, now you’re correct, with it being market saturation, at least in the near term.

    Reply
    1. Lurch

      That’s why it’s hard to find parts for a Scripps-Booth or a Moon. Good luck if your ride is a Jordan Playboy.

      Reply

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