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Fisker Drops Lawsuit Against Insurer Over 300 Flooded Karmas

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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]

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Remember those 338 Fisker Karma electric cars wrecked by Hurricane Sandy while they were sitting on a Port Newark dock?

Remember the December lawsuit Fisker filed against its insurance company after its $33 million claim was denied?

Never mind.

Yesterday, according to Bloomberg, Fisker Automotive reached an out-of-court settlement with XL Insurance America.

The terms of the resolution, according to a Fisker spokesperson, will remain confidential.

It's at least possible that Fisker is cleaning up odds and ends of business prior to a new investment or an outright sale of the company.

CEO Tony Posawatz has said that Fisker wants to close a deal by the end of February to ensure the company's future.

And he's looking largely in China for that new funding--which has a couple of U.S. senators quite upset.

Senators Chuck Grassley [R-IA] and John Thune [R-SD] said on Tuesday they would be against any sale of Fisker Automotive to a Chinese company.

Reports suggest that two Chinese automakers, Dongfeng Motor and Geely Automotive (which owns Volvo), are competing to purchase Fisker.

Fisker was granted $529 million in low-interest loans by the Department of energy in September 2009.

The DoE cut off disbursements in May 2011 because Fisker had missed several deadlines it was required to meet as part of its loan agreement.

At that point, roughly $193 million had been loaned to the company.

“Technology developed with American taxpayer subsidies should not be sold off to China," Grassley told Bloomberg.

He compared Fisker to its lithium-ion battery maker A123 Systems, another recipient of DoE subsidies that was sold to a Chinese company after its bankruptcy.

It is not clear, however, that the senators have the ability to do much to halt such a sale beyond complaining about it.

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Comments (3)
  1. They settled. I suppose you could call that as Fisker dropped the suit. But to me that would mean Fisker gave up and got nothing. Instead they settled, which typically means Fisker got something, though we don't get to know how much.
     
    Post Reply
    +1
    Bad stuff?

  2. It's terrible that this company might go to China but they (or any other foreign company) better pay off the federal debt first... This is insane.
     
    Post Reply
    Vote
    Bad stuff?

  3. I hope they got at least 50%. It is normal for insurance companies to deny, then bargain on large claims even though they make it sound like you will get full coverage when they sell you the policy.
     
    Post Reply
    +1
    Bad stuff?

 

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