Published on February 17th, 2014 | by Christopher DeMorro7
Fisker Sold To China's Wanxiang For $149 Million
The 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