Fisker faces insolvency in Austria

In March, it was announced that Magna in Austria would temporarily cease production of the Ocean electric SUV – officially in order to reduce stocks. The production break would last “at least six weeks”, it was announced in mid-March. So at least until the beginning of May. This has since been extended to at least the end of June. This is now followed by a statement from Fisker Austria that it has “filed an application for the opening of reorganisation proceedings with self-administration within the meaning of the Austrian Insolvency Code”. However, the company is to continue the payment of employees and the sale of cars, according to a brief statement sent to us by email.

In the case of insolvency under self-administration, debtors must apply to the court for the adoption of a reorganisation plan in addition to filing for insolvency. As the name suggests, the debtor subsequently retains the power of disposal over the assets under the supervision of the court and a court-appointed reorganisation administrator and can reorganise the company itself.

Fisker Austria states that it will continue to deliver its vehicles to customers “as far as possible” during the reorganisation process, provide services and provide updates for the over-the-air software. The fact that Fisker Austria is announcing that, in addition to continuing its business, it intends to pursue a
“to pursue a value-maximising strategic transaction or other sale of assets”. This does not sound like Fisker Austria believes in an independent future in its existing form.

What Fisker Austria does not mention in its official announcement, but explained to the Austrian publication Kleine Zeitung when asked: “Fisker’s Austrian business unit is primarily focussed on managing the contract manufacturing of Fisker’s revolutionary electric vehicles.” This means that the already interrupted production of the Ocean at contract manufacturer Magna in Graz is likely to come to an end for good. Especially as Fisker only mentions in its own press release that it intends to continue selling and delivering cars. There is no mention of production.

The other Fisker companies are to remain unaffected by the insolvency application. They are not involved in the Austrian reorganisation proceedings and will continue business operations as normal, according to reports. However, rumours of financial difficulties have been circulating for months. Not least because the company had questioned its own future at the beginning of March – as is well known, this is a mandatory disclosure under US stock exchange law if liquidity is insufficient for a certain period of time. In mid-March, the US media then reported that Fisker was working with lawyers to prepare for possible insolvency.

Rumours that Fisker is closing its headquarters in California are completely new. This is reported by the US portals InsideEVs and Business Insider, among others, citing insiders. According to the portal TechCrunch, Fisker is apparently also facing a number of lawsuits, including a claim for damages from development partner Bertrandt due to cancelled payments and the infringement of intellectual property.

Source: Info via email, insideevs.com, techcrunch.com, kleinezeitung.at (in German)