Advertisement

Fisker Hires Investment Bank To Find Funding, Partner Companies

Follow John

2012 Fisker Karma in Costco parking lot, Santa Monica, California [photo: Chris Williams]

2012 Fisker Karma in Costco parking lot, Santa Monica, California [photo: Chris Williams]

Enlarge Photo

Fisker Automotive, often referring to in the media as "struggling," is looking for additional funding and a carmaking partner.

According to a story in the Wall Street Journal (subscription required), the company has now hired an investment bank, Evercore Partners, to assist in those quests.

Fisker CEO Tony Posawatz, on the job just four months, told the Journal today that the company is working with Evercore to identify a strategic partner.

"We are in serious discussions with multiple strategic partners," Posawatz said, both in China and Europe.

Fisker halted assembly of its Karma range-extended electric luxury sedan several months ago, when its lithium-ion cell supplier A123 Systems declared bankruptcy.

It is assumed to have produced 2,000 to 3,000 Karmas before production was shut down.

Fisker said it has approximately 100 battery packs on hand from A123, which will allow it to provide service parts. That number is not sufficient to restart Karma production, however.

The company lost about 300 new Karmas to flood waters and fire at a New Jersey port during Hurricane Sandy.

While Evercore advised General Motors during its bankruptcy, Posawatz specifically ruled out bankruptcy for Fisker.

The Wall Street Journal story says, however, that Fisker Automotive could be sold outright, according to the paper's sources.

If that happens, any new owner would most likely not have access to remaining low-interest loan funds from the Department of Energy.

Fisker's loan under the Advanced Technology Vehicle Manufacturing program was frozen early in 2011 after it missed numerous deadlines for Karma production.

Roughly $190 million of the $529 million commitment had been disbursed.

The privately-held Fisker, along with publicly-traded Tesla Motors [NSDQ:TSLA], were criticized as "loser companies" by unsuccessful Republican candidate Mitt Romney during this fall's U.S. presidential campaign.

+++++++++++

Follow GreenCarReports on Facebook and Twitter.

Advertisement
 
Follow Us

People Who Read This Article Also Read

 

Have an opinion?

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (7)
  1. Things started out well for Fisker Automotive they did show a lot of promise as an interesting new brand. But they do look at the moment to be headed in the same direction as the DeLorean Motor Company, produced a small amount of neatly designed cars, went bust, and survives years later in automotive history thanks to loyal enthusiasts. I think one thing Tesla got right was backing up their great designs with their own revolutionary powertrain, Fisker has their own great design but the powertrain is the product of hired partners so all Fisker really has is their image. Image is important but the engineering is your substance, and Fisker doesn't really have substance it's just an image.
     
    Post Reply
    +1
    Bad stuff?

     
  2. This is such an amazingly comfortable and stylish car to commute with (or take a long road trip). Handling is amazing and the electric drive gives a super smooth, powerful launch. In a few years electric drive will become the luxury car 'standard' for the same reasons power brakes and power steering became standard. The glitches mentioned by some of the bad reviews were fixed months ago. Too bad the US government, press and investors are too caught up in global warming denialist politics to appreciate the gem of a product Fisker has created.

    Fisker initially hired partners to help with the powertrain but they internalized that long ago and already have a much more compact and efficient 2.0 powertrain design for the Fisker Atlantic.
     
    Post Reply
    Vote
    Bad stuff?

     
  3. In other words the press needs to get off their duffs and try commuting with the car instead of parroting one another's bad reports on the Karma. Fisker's image problem IS simply the 'bad', lazy press, not grounded in current reality of the product.
     
    Post Reply
    Vote
    Bad stuff?

     
  4. @Wayne: I'm afraid I have to disagree. I've driven the Karma twice, the second time for almost an entire day in a wide variety of mixed uses. It's a striking design but a somewhat compromised and flawed car.

    Would be curious to get your reactions as an owner to the full review I wrote:
    http://www.thecarconnection.com/overview/fisker_karma_2012

    and to the GCR article I published at the same time:
    http://www.greencarreports.com/news/1073213_2012-fisker-karma-plug-in-is-real-but-will-company-survive
     
    Post Reply
    +1
    Bad stuff?

     
  5. The Atlantic has to be a better produced unit than the Karma for Fisker to survive. And the Atlantic exists on paper today. Will take 2-years to get to public consumption.
    Vote
    Bad stuff?

  6. I do like the driving experience in the Karma, it moves beautifully. The only one thing on my wish list for the Karma is a bit more performance. I don't care what it's top speed is I just think it would be better if the 0 to 60 time was at least in the low 5 second range. One thing that made the Tesla Roadster great was the 0 to 60 in 3.9, it looked like a sports car and moved like one to. And being that the Karma has design elements from both Aston Martin and BMW I don't think it's too much to ask for the Karma to have the ability to at least keep up.
     
    Post Reply
    Vote
    Bad stuff?

  7. I guess I mis-judged Fisker's financial position. I thought with all the money they raised early on in the year, that they should be pretty flush. I also assumed that the cars lost in the hurricane were insured, but maybe less than 100%? If the insurance did not cover the full cost, it could add up to a big loss. This news seems to put Fisker in a little more desperate light, although I hope they succeed I think their only chance is with the Chinese. I also hope I'm wrong and Fisker can make it without being acquired by a large company, and this is just a fishing expedition, not do or die.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion? Join the conversation!

Advertisement
Advertisement

Get FREE Dealer Quotes

From dealers near you
Go!

Find Green Cars

Go!

Advertisement

 
© 2014 Green Car Reports. All Rights Reserved. Green Car Reports is published by High Gear Media. Send us feedback. Stock photography by izmo, Inc.