Fisker Automotive Fires 75% Of Workforce

fisker-headquartersFisker Automotive today announced that it was firing 75% of its workforce, leaving a skeleton crew of 53 senior managers and executives to save the it. And no, there were no severance packages.

This comes just a week after employees went on an unpaid furlough. About 160 people were laid off, leaving behind just the bigwigs and bare necessities. Without Chinese investors and the Department of Energy loan, Fisker’s cash reserves have all but dried up. Despite raising more than $1.2 billion in private equity and securing a $529 million Department of Energy loan, Fisker has suffered one setback after another. I’m not going to rehash the tragedy that is Fisker automotive just yet, but bankruptcy seems all but certain at this point.

Is it appropriate yet to ask who, if anyone will end up buying the husk of Fisker Automotive? The Chinese don’t want it, which leaves…who, exactly? Once bankruptcy is underway, buyers may come out of the woodwork to try and get the company and it’s hybrid technology for cheap. But this may very well be the end of Fisker Automotive as we know it. The company has a $10 million DOE loan payment due this month, and is attempting to renegotiate the terms of the loan.

At this point though, it will take a lot more than $10 million to right everything that is wrong with Fisker Automotive. Not even a diesel engine could save them now.

Source: Reuters

 

Christopher DeMorro

A writer and gearhead who loves all things automotive, from hybrids to HEMIs, can be found wrenching or writing- or else, he's running, because he's one of those crazy people who gets enjoyment from running insane distances.