This electric car manufacturer pauses production to avoid bankruptcy

Fisker, an American electric car brand, is in financial difficulty and has decided to pause its production for six weeks.

Fisker Ocean // Source: Frandroid

The financial situation of Fisker, an American brand of electric cars sold in France, is more than fragile. On the occasion of the publication of the 2023 results, job cuts were announced and the founder of the brand even warned that bankruptcy could occur in the next 12 months. To avoid possible bankruptcy, Fisker has decided to pause production for six weeks starting March 18.

Fisker's difficulties are not limited to its financial situation. The brand has also been criticized for the quality of its software and driver assistance system.

MKBHD, the biggest tech channel on YouTube, commented after testing the Fisker Ocean: “ This is probably the worst software in any car I have ever tested. » The words are harsh, but reflect a frustrating reality for users: “ The driver assistance system is both the worst and most dangerous I have ever used. “.

Fisker also assures that a major 2.0 update has started to be deployed, the latter should correct some of the bugs. Concerning the slowness of the infotainment, Fisker explained to us during the test of the Ocean that unfortunately, this was due to the software infrastructure, with the software from partner Magna.

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A potential partnership with Nissan

Fisker has hired expert and law firms to prepare a bankruptcy filing. However, the American brand also sold new convertible bonds, worth up to $150 million, to the Polish investment fund CVI Investmentthus providing new money.

Fisker also mentions in her press release that she is speaking with a “ major car manufacturer » of a possible transaction, which would involve an investment in Fisker and “the joint development of one or more electric vehicle platforms and manufacturing in North America”. According to rumors, it would be Nissan.

Limited production and a costly subcontracting strategy

Fisker currently only sells the Ocean electric SUV and does not have its own production facilities. The brand aims to be a lean design and development company and has partnered with contract manufacturer Foxconn for the already announced Pear small car.

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The Ocean is built at Magna in Graz, Austria, and Fisker claims to have produced 1,000 Fisker Oceans in 2024 through March 15, delivering “ approximately 1,300 copies worldwide during the same period “. In addition, it has an inventory of approximately 4,700 Fisker Oceans, including those already produced in 2023.

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