Much-hyped EV maker Fisker Inc. has filed for Chapter 11 bankruptcy after months of struggles with its flagship Ocean SUV model, according to court filings. Founded by renowned automotive designer Henrik Fisker, the California-based start-up estimated assets between $500 million to $1 billion with liabilities in the range of $100-500 million.
After debuting its all-electric Fisker Ocean SUV just last year, the vehicle faced a string of recalls and customer complaints regarding software glitches and mechanical faults. Internally, the company also struggled with customer service issues and financial management. While partnering with contract manufacturer Magna, Fisker only delivered a few thousand Ocean vehicles against high expectations.
The beleaguered start-up laid off staff and implemented cost cuts in recent months in an attempt to preserve funds. It also altered its direct sales model and tried to strike partnerships with traditional dealerships. However, the measures failed to turn Fisker’s fortunes around, leading to the Chapter 11 bankruptcy filing in Delaware court late last week.
Fisker now owes amounts between $100-500 million to over 200 creditors, including several major tech companies. The filing marks a disappointing outcome for the company that aimed to challenge Tesla’s dominance in the nascent EV market with Henrik Fisker’s renowned design expertise. The story is still developing on the future of the Fisker brand and its technology.