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Fisker Insurer Won't Pay For 300 Flood-Ruined Karmas; Lawsuit Follows

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2012 Fisker Karma

2012 Fisker Karma

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Fisker Automotive's succession of calamitous events would be hilarious were it not so tragic--the stream of misfortunes so constant you begin to wonder if naming its first vehicle the Karma was a terrible mistake.

After losing 338 vehicles through flood and fire during Hurricane Sandy, the company's insurer now refuses to pay up--and Fisker is taking them to court to seek damages.

According to Reuters (via Autoblog Green), Fisker's policy through insurer XLGroup Plc. entitles it to up to $100 million for damage incurred through named storms such as Sandy.

The value of the destroyed Karma vehicles at Port Newark, New Jersey, totalled around $33 million.

The dispute centers on whether the cars were classed as "in transit", and which sublimits may apply. Fisker is seeking a court order that covers the vehicle loss, as well as damages for breach of contract.

More than 10,000 vehicles were destroyed at Port Newark in total, during what is expected to become the second costliest U.S. catastrophe in history--behind only Hurricane Katrina in 2005.

The last 12 months have seen a litany of issues for Fisker, including fires, recalls, production delays, funding issues, poor reviews and layoffs.

The question is: Just how much longer can Fisker continue under such pressure?

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Comments (4)
  1. If Fisker looses their battle with the insurance company and the state of Delaware makes them repay the $21.5 million in grants they're looking at loosing about $54.5 million. 2012 may have been a bad year for Fisker but it's already looking like 2013 isn't going to be any better. And sadly instead of the Karma's name evoking visions of being kind to nature and receiving kindness in return, the name at this point only inspires jokes and the question of what did they do to earn such bad karma? My only hope at this point is if Fisker Automotive meets their demise that their failing won't negatively impact the rest of the plug-in market.
     
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    Bad stuff?

  2. Here is what America got of jobs for $530 million from Obama...NONE !! and a closed plant
    https://plus.google.com/photos/102988372928778833247/albums/5792214412441722721?banner=pwa
     
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    Bad stuff?

     
  3. @Darren: Your figure is a bit off.

    The U.S. Department of Energy froze its low-interest loans to Fisker in 2011 after $193 million had been disbursed. The $529 million figure is the *total* grant amount to Fisker, but at the moment, it seems highly unlikely that the DoE will release the balance.
     
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    +1
    Bad stuff?

  4. sounds like the insurer is using bad faith.

    now in many states bad faith claims are subject to triple damages.
     
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    Bad stuff?

 

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