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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