Fisker owners will receive assistance with recall repairs following court approval of the company's liquidation plan.

Fisker's plan to liquidate its assets has been approved by the bankruptcy court in Delaware. And with it, the issue of who should pay for labor costs associated with a pair of recalls on the bankrupt EV startup's SUVs is finally settled.
Fisker owners will receive assistance with recall repairs following court approval of the company's liquidation plan.

Fisker's plan to liquidate its assets has been approved by the bankruptcy court in Delaware. And with it, the issue of who should pay for labor costs associated with a pair of recalls on the bankrupt EV startup's SUVs is finally settled.

Fisker also settled with American Lease, which assumed the rest of its EV fleet, over a dispute over cloud-hosted data needed to run the vehicles.

It brings the four-month bankruptcy process for Fisker to a near close, and gives the green light to a newly appointed trustee, who will oversee the sale of around $1 billion in assets, including the manufacturing equipment that was used to build Fisker's electric SUVs. The plan lays out all the details of how much money Fisker's myriad creditors will receive from the sale of those assets.

But the plan also ties up loose ends - for example, who will pay the labor costs of two recalls. Fisker actually has five outstanding recalls on its Ocean SUVs. Three can be resolved through a software update, but two of them require replacement parts.

In mid-September, Fisker first said it would cover the cost of the parts but not the labor when it published a FAQ about the recalls. It then reversed that and said it would cover the labor costs. Then, in late September, it was a complete reversal again, putting the financial burden right back on the owners' shoulders.

The DOJ said last week that this approach was illegal, because it violated the National Traffic and Motor Vehicle Safety Act. So Fisker and its bankruptcy lawyers had to come up with a new approach as it worked to finish off its liquidation plan.

Any owner who receives both of the recalls discussed above prior to the liquidation plan being deemed effective-in this case it should be this week-must still pay labor to put through those repairs at the front end. The owner will have to file a reimbursement claim with the trustee in Fisker's liquidation. All owners who have already paid for the labor costs to put these repairs through are included in this category, too.

Anyone who has the recalls done within the effective date of the plan can go to an authorized service center and have the work done without paying for labor. The service centers then must make their own claims for reimbursement with the liquidation trustee.

This week, Fisker also resolved a surprising last-minute issue with American Lease, the New York-based leasing company that bought the startup's remaining fleet of about 3,000 Ocean SUVs for $46.25 million. American Lease filed an emergency objection to the liquidation plan last week because, it said, Fisker had discovered it was unable to move data crucial to operating its EVs onto a new server.

American Lease is now in an agreement to pay an extra $2.5 million over the next five years so they might claim control of the cloud services that keep the Ocean SUVs online. In addition to that, Fisker Owners Association will now have access to that data, besides other support services that will help the current owners going ahead.

Blog
|
2024-10-17 18:45:23