22 February 2014

Fisker Bought By Chinese Firm

The Fisker Karma. Quite a looker I think

Fisker makes as very stylish electric car. Like many of these ventures it is difficult to get enough sales to cover the development costs. Money runs out and it the receivers move in. This recently happened to Fisker.

The unusual thing was Fisker asked a judge to allow the company to be sold to Hybrid Tech Holdings for about US$25 million. However unsecured creditors were not happy and so Wanxiang came into the picture. They acquired the car company for about US$149 million, much more than Hybrid could have got it for. Rather strange.

Anyway who is Wanxiang? It is a very large automotive car component supplier. A year ago, Wanxiang also bought battery maker A123 Systems, another US firm that went broke. Obviously battery making and a battery powered car go well together, so the deals make sense.

It is too early to say anymore about what will transpire, except Fisker cars look like they will still be made, in Finland and then the USA, and perhaps now China too. At least things will be calmer now for Fisker.

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