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Fisker Lays Off Most Of Its Employees; Is This The Final Blow?

 
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Henrik Fisker

Henrik Fisker

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Newspapers keep in their files pre-written obituaries for people who are old, known to be ill, or famous.

We have a feeling we should start dusting off the one we wrote awhile back for Fisker Automotive, which laid off the bulk of its remaining employees this morning at 8 am Pacific time.

Numerous members of the media received notes earlier today from at least one Fisker employee noting that the layoffs were coming.

As further details leaked out, GigaOm reports that 160 employees were laid off, with just 53 remaining.

A week ago yesterday, the Wall Street Journal reported that Fisker had "hired restructuring lawyers at Kirkland & Ellis LLP," to help it prepare for a possible bankruptcy filing.

That came shortly after Fisker put its entire U.S. staff on a week-long "temporary" furlough to conserve cash.

The moves followed the collapse of negotiations between Fisker executives and two potential Chinese investors, the state-owned Dongfeng Motor Group and the Zhejiang Geely group (which owns Volvo).

Insiders later told reporters  that Fisker's plans had simply been too risky for either potential savior.

SEE ALSO: Fisker: An Influential Disaster (complete with FoIA documents!) and Fisker Automotive: The Final Flameout?

In part, the challenge lies with the $192 million in low-interest loans Fisker received from the U.S. Department of Energy before the DoE froze disbursements in 2011 because Fisker had missed numerous deadlines for production of its Karma range-extended electric luxury sedan.

The DoE had originally awarded Fisker $529 million in loans in September 2009.

Fisker faces an April 22 deadline for its next payment to the U.S. Department of Energy, but the company has virtually no income from ongoing operations because it hasn't built a single Karma since last summer,

Tony Posawatz, its current CEO, was hired last August, replacing former Chrysler co-CEO Tom Lasorda, who had spent only seven months in the job.

We'll keep you posted on further Fisker developments.

Meanwhile, we're going to revisit that obituary. Just in case.

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Comments (8)
  1. Maybe Fisker needs to sell cocaine to keep his company afloat.
     
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    +2
    Bad stuff?

  2. I guess I'm left wondering what it is those 53 remaining employees are going to do to fill out the day? Fine tuning resume's?
     
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    +1
    Bad stuff?

     
  3. They're writing up price tags for a garage sale.
     
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    +1
    Bad stuff?

  4. This really is a bummer. Yes, I feel like they deserve some bad karma for stealing from Tesla, when Tesla was still young, but this overall isn't going to help the green car movement. Dammit Fisker, you really blew it man.
     
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    +3
    Bad stuff?

  5. Even thou they haven't produced any cars in some time. According to Cars.com there are still 83 new ones sitting on dealer lots across the country. They have bigger issues than production. There seems to be a big lack of demand.
     
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    +3
    Bad stuff?

  6. they may need to file bankruptcy, clear the loan with DoE and then see if a new investor will come in. it seems like a nice product, but, they need to fix the biz plan
     
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    Vote
    Bad stuff?

  7. Having driven both the tesla and the Fisker, the Tesla wins hands down, the karma is just a status plug in hybrid that has worse AER stats than a volt. Its a huge car with absolutely no interior room, useless.
     
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    +2
    Bad stuff?

  8. They seemed to be focused on looks with no substance from the start. This can't be too surprising to most folks. I'm just dreading all the fodder this will create.
     
    Post Reply
    Vote
    Bad stuff?

 

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