Fisker’s new owner, Wanxiang America Corporation, plans to restart production of the luxury hybrid car in the United States.
After successfully outbidding Hybrid Technologies LLC for Fisker’s assets last week, Wanxiang America Corporation’s President Pin Ni told the Chicago Tribune he plans to move production of the Karma from Finland to Michigan to be close to the car’s battery supplier, A123. Wanxiang successfully purchased that company at a bankruptcy auction last year.
Ni also said the second generation of Fisker cars is scheduled to be manufactured in Delaware.
Wanxiang said it will pay New Castle County, $1.1 million in back property and school taxes during closing of the sale.
This is a glimmer of hope for Delaware, since the state invested millions in loans and incentives to help start production at a former General Motors plant in Newport.
“The auction and hearing were positive steps, but only a beginning,” said Alan Levin, director of the Delaware Department of Economic Development. “We look forward to learning more about Wanxiang’s plans for Fisker and advocating for making the Boxwood Road facility an important part of those plans.”
On Tuesday, U.S. Bankruptcy Judge Kevin Gross approved the sale of Fisker to Wanxiang for a total of $149.2 million.
“It was a pleasure to work with our client in finding creative ways to unlock value and ultimately prevail in the auction process,” said Wanxiang attorney Bojan Guzina. “It was the strength and flexibility of Wanxiang America’s management team that enabled them to successfully navigate a complex and unpredictable process like this one. We look forward to working with our client in the next phase of this transaction.”
The next step will be dividing the sale money among creditors. Fisker had secured more than a billion dollars between private investments and state and federal loans before the company began falling apart.
The automaker filed for Chapter 11 bankruptcy protection last year, blaming supply chain disruptions, design delays and the inability to access additional or incremental liquidity.
They also claim sales were affected by negative press after the company was forced to recall batteries after cars began catching on fire.
Fisker also claims to have suffered a multimillion dollar loss when 339 Karmas were destroyed in Hurricane Sandy.