Fisker files for bankruptcy, plans asset sale and restructuring

American electric vehicle manufacturer Fisker has filed for Chapter 11 bankruptcy protection.

The move follows the company's unsuccessful attempt to secure investment from an industrial partner understood to be Nissan in March, which forced a halt in manufacturing and a pause on further investments. As part of its restructuring efforts, Fisker also cut its workforce by about 15%.

"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 stated. "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."

Earlier this year, Fisker announced a shift in its sales strategy, opting for a combination of direct sales and a dealer network in Europe while developing a similar partnership model in North America. Despite these changes, the company continued to face financial difficulties.

Fisker, which had a physical presence in the UK through its Fisker Lounge at London's Westfield White City shopping centre, initially launched with an online sales model supported by its own fulfilment locations.

The company began global deliveries of its first cars in May 2023 and had plans to launch additional models, including the Fisker Pear hatchback, the Fisker Ronin convertible sports car, and the Fisker Alaska pickup truck.

Fisker anticipated that its first UK dealers would receive vehicles by the end of the first quarter of 2024, with initial dealer partners in place for the arrival of its higher-volume vehicle models.

According to Reuters, Fisker is in advanced talks with financial stakeholders to restructure its debt and is aiming to sell its assets.

Bankruptcy filings reveal that Fisker Group Inc. holds estimated assets of $500 million to $1 billion and liabilities ranging from $100 million to $500 million.

In 2023, the company produced over 10,000 vehicles, falling short of its forecast, delivering around 4,700 units. In a bid to attract more UK customers, the company lowered the price of its Ocean SUV by up to £14,000 in April, making the cheapest example offered for £32,170. All vehicles were sold on the basis of limited aftersales support.