Fisker Sold To China's Wanxiang For $149 Million


Fisker-Karma-driving-2The dust has settled, and pending approval by the courts, China’s Wanxiang will become the owner of Fisker Automotive for $149 million. While there remain many hurdles before the Fisker Karma resumes production, almost all the pieces are finally in place.

Wanxiang’s bid beat out Hybrid Tech LLC. and it’s Hong Kong billionaire owner for the rights to Fisker’s technology and assets. The bid is about six-times the initial offer from either party, and required 19 rounds of back-and-forth bidding. While the sale doesn’t include the Fisker name, Wanxiang already owns the battery maker formerly known as A123 Systems, which was the exclusive battery supplier for the Fisker Karma. Wanxiang has promised to eventually bring production to the U.S.

The surprisingly-high selling price means that the U.S. government will recover substantially more money than expected. Fisker had borrowed about $192 million of the $529 million it was awarded, meaning that American taxpayers will only lose about $43 million on the Fisker boondoggle if the sale is approved. While not exactly chump change, it’s not nearly as big a deal as some talking heads might have you believe.

Best of all though, the Fisker Karma could make a comeback at the hands of Wanxiang, though likely not as a Fisker. That’s probably for the best though, as a fresh start is what the Karma really deserves. This sale would also give the Chinese their first foothold in the America’s coveted automotive market. Are you ready for Fisker 2.0?

Source: Automotive News

About the Author

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.
  • curly4

    How much did Obama give Fisker to promote “green energy” and how much did the government lose? Now all that the US invested (?) in Fisker only to have China to make the profit. Such a great investment by the government.

    • T Adkins

      The article says we are out $43million. Fisker did get F’d over with that whole insurance not paying for $33million in hurricane damaged cars. Their contracted battery manufacturer went bankrupt. But with Fisker losing $35,000 per every car sold I dont see how they would have gotten ahead.

      • PrezNixon

        Although I wish it weren’t true, Chris is wrong about the $43 million number. The DoE sold Fisker’s loan last year, and those funds from that sale, along with payments that the DoE confiscated under the terms of the loan, the DoE lost $139 million on this loan, and they will not recover any money from this sale.

        But that doesn’t mean that the tax payer will be out of pocket, This is just one loan in a portfolio of ATVM loans. The losses in this loan will be more than paid for in the 8 Billion worth of loans to Ford, Nissan, and Tesla. Profits from those loans will offset the losses from Fisker. The govt will also still continue to collect income and payroll taxes from Fisker’s employees, and potentially may collect business taxes if Fisker becomes profitable in the future.

        As for China benefiting from Green technology from the US, well, I sure hope Wanxiang builds lots of PHEV’s for China through this deal, because if you’ve looked at Beijing air quality lately, they really need a successful PHEV and EV industry in China. If it ends up being successful and helps clean up China’s pollution and carbon footprint, then that benefits the US too.

  • Pingback: Gas 2 | Bridging the gap between green heads and gear heads.()

  • Pingback: Gas 2 | Bridging the gap between green heads and gear heads.()

  • Pingback: Two Fisker Models (Including Fisker Atlantic) To Begin Production | CleanTechnica()

  • Pingback: Gas 2 | Bridging the gap between green heads and gear heads.()