Published on January 29th, 2013 | by Christopher DeMorro4
Fisker Seeking Chinese Savior By Next Month
Sometimes it feels like we are picking on Fisker, because for the past year it has been one bad, sad news story after another. But it is hard to deny that Fisker faces a grim outlook unless they can get a much-needed injection of cash. This means the U.S. based automaker, which builds and ships cars over from Finland, has gone to China in search of funding…and they may have found it.
Fisker, which values its plug-in hybrid car technology at around $1 billion, needs money to get its next model, the $50,000 Fisker Atlantic, into production. Fisker has been cut off from the government teet after failing to meet sales quotas, and the proposed factory in Delaware remains idle…not that Fisker is building anything. It has reportedly been six months since a Fisker Karma was built, due to either lack of demand or lack of batteries after the sale of battery supplier A123 Systems to Wanxiang Automotive, another Chinese auto company.
It hasn’t all been bad news though, as Fisker secured another $100 million in private equity late last year. The negotiations in China have also reportedly produced two serious potential investors, who are putting together offers through the banks. How serious these companies are, we’ll know soon enough, as Fisker has set a goal of having negotiations finished by next month. And if these bids fall short, or the two parties can’t come to a mutual agreement? Fisker has made deals with China before, including a deal that puts Fisker Karmas in the showrooms of China Grand Automotive Group. But can they pull of a final-quarter Hail Mary pass to save the whole shabang?
Well we hate to say it, but 2013 might be Fisker’s last bad year…and not in a good way.
Source: Green Car Reports