The EV manufacturer of the Ocean SUV had brought the vehicle twice as fast as expected but has experienced various market and macroeconomic headwinds
Los Angeles—Fisker Group Inc., the operating subsidiary of Fisker Inc., announced on Tuesday that it filed for Chapter 11 protection in the District of Delaware on Monday, June 17. It is in advanced discussions with financial stakeholders regarding debtor-in-possession financing and the sale of its assets.
“Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world,” said a Fisker spokesperson. “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.”
Fisker’s previously announced manufacturing pause will remain in place. Fisker intends to file certain customary motions with the Bankruptcy Court to ensure its reduced operations are able to continue, including paying employee wages and benefits, preserving certain customer programs, and compensating needed vendors on a go-forward basis. Fisker Inc. and other U.S. subsidiaries, as well as subsidiaries outside the U.S., are not included in the Chapter 11 filing at this time.
Fisker Issues Voluntary Recalls
Fisker is issuing a voluntary safety recall for a total of 11,201 Fisker Oceans across the U.S., Canada, and Europe, the company announced last week. As these vehicles’ current Motor Control Unit (MCU) and Vehicle Control Unit (VCU) software may cause the vehicle to enter a safe state protection mode, potentially leading to a loss of motor power, all affected vehicles will receive an update to version OS 2.1 of Fisker’s vehicle software via an over-the-air (OTA) process.
Fisker is also issuing a voluntary noncompliance recall for 6,864 Fisker Oceans in the U.S. and 281 in Canada. As these vehicles do not currently comply with certain Federal Motor Vehicle Safety Standards (FMVSS) standards regarding gauges and telltale icons in the cluster display, all affected vehicles will receive an update to version OS 2.1 of Fisker’s vehicle software via an OTA process.
The National Highway Traffic Safety Administration (NHTSA) and Transport Canada (TC) are in the process of posting these recall notices on their websites. Vehicles already updated to OS 2.1 are not affected by these recall actions, and Fisker expects to complete the OTA software update process by June 30. The company informed its dealer partners of these recall actions on May 30, and will notify owners by June 30.
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