Running a car company is very difficult, but in this case, the events that led to its ultimate demise should be considered a tragedy.
An ambitious electric vehicle startup with Tesla in its sights has resigned after a rollercoaster of quality issues, recalls and controversy over a prolific YouTuber led to its delisting from the New York Stock Exchange and its eventual fall in misfortune.
Related: President Biden's EV 'mandate' is Trump's latest political bogeyman
In a statement released early on June 18, Fisker Group Inc., the operating arm of Manhattan Beach, California-based Fisker Inc., filed for Chapter 11 bankruptcy protection in Delaware.
Citing “several macroeconomic and market headwinds,” the brainchild of celebrated Aston Martin and BMW designer Henrik Fisker said it is in “advanced discussions” with interested parties to find buyers for its remaining assets.
Fall from grace
The collapse of the electric vehicle startup marks the second time in 10 years that one of Henrik Fisker's auto companies has gone bankrupt. Previously, the designer was involved with Fisker Automotive, a separate but similarly named company that closed in 2014. His only product was the Karma, a stylish extended-range electric sedan that changed the game when it was introduced in 2011. .
In 2023, Fisker Inc. began deliveries of the Ocean, a battery-electric crossover SUV with its sights set squarely on Tesla. The sleek electric cruiser was meant to mark the return of the Fisker name, but problems with the new car would begin to pile up and pile up.
TO TechCrunch February 2024 Report exposed several ocean-related problems and issues, including sudden loss of power, cars experiencing loss of braking power, key fobs malfunctioning, and front hoods opening and flying at high speeds.
Additionally, on February 16, NHTSA launched a preliminary investigation into ocean “involuntary vehicle motion,” precisely the vehicle's inability to shift gears, including park gear. According Reutersone of the complaints alleged an injury to a homeowner.
Later that same month, YouTube technology authority Marques Brownlee stated that the Ocean the “worst car” i have ever reviewed in a scathing 20-minute video on his Auto Focus channel.
In the review, he praises the Ocean's unique styling, comfortable seats, rear seat room, and lively driving experience. Still, he points to a long list of problems, including key fob issues, a miscalibrated hill control and critical software issues that made the car look “unfinished,” according to Brownlee.
“There are so many annoyances, especially with things like cameras and driver assistance devices that randomly beep and flash for no reason,” Brownlee said in the video. “It just feels like the buggiest car I've ever tested.”
After Fisker updated the Ocean software, Brownlee provided a review updated in April 2024. However, his scathing opinion remained valid, as problems that were highlighted in his previous review continued to occur.
“(Fisker's software) is still a mess and buggy,” Brownlee said in his video.
“There are more (software) delays than you would expect for a new car that costs fifty or sixty thousand dollars. I think this is the main thing that, if Fisker wants to continue to exist, they will have to work on to be able to make this car be acceptable.”
In a post on
<blockquote class="twitter-tweet”>
RIP
I know everyone is saying that I killed them, but the truth is that they were doomed long before any of my videos.
It's sad news because we (always) need more competition in the EV space. But he never made it over the hill. https://t.co/7YJZeCuMNj
—Marquis Brownlee (@MKBHD) twitter.com/MKBHD/status/1803086845091135626?ref_src=twsrc%5Etfw”>June 18, 2024
A failed deal, delisting and fire sale
fisker
On February 29, during its fourth-quarter results, Fisker warned that it may not have enough money to survive the next 12 months, noting that “there is no guarantee that Fisker will be successful” in finding additional capital or debt financing.
“If financing is not available, or if financing conditions are less desirable than Fisker expects, the company may be forced to decrease its planned level of investment in product development, reduce its operations, including further workforce reductions, and reduce production of the Fisker Ocean, which could have an adverse impact on the company's business and financial prospects.” he added.
Next up, while the idea of owning an Ocean EV didn't seem like a bad deal, the system Fisker relied on to make them makes it seem like the company wanted to be as “hands-off” as possible.
Many automakers, such as Mercedes-Benz, employ outsourced manufacturers such as Magna Steyr to save valuable space in their factories. For example, the German automaker uses the Austrian contractor to produce its six-figure G-Class SUV, but Fisker intended Magna to play a larger role.
In a report from June Inside electric vehicles, former Fisker employees revealed that the company did not plan to provide or stock spare parts for the repair of Ocean electric vehicles. The report states that the firm's front men insisted that the vehicle be “perfect” when leaving the factory, which led Fisker technicians and employees to dismantle perfectly good cars to provide spare parts, as well as smuggle spare parts in suitcases. .
Related: Fisker Employees Reveal Some Sketchy Practices
Fisker's bold future plans
With Fisker going through its Chapter 11 bankruptcy, plans for its future models are in complete limbo as it looked to extend its line beyond the Ocean.
He had plans for a model called the Ronin, a curvaceous, limited-edition high-performance convertible that would have had 1,000 horsepower, a 0-60 mph time of about two seconds and a price tag of $385,000.
Fisker also had plans for a pickup truck called the Alaska. His answer to Rivian's R1T would have had a range of up to 340 miles when it reached series production in the first quarter of 2025.
Additionally, the California brand had an “affordable” model in the works: an ocean-style compact called the Pear. Priced at $29,900 before incentives, it would have had up to 320 miles of range, as well as rear- and all-wheel drive versions like its once-potential rival; The Tesla Model Y.
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