Fisker Automotive Lays Off 75 Percent of Staff, Catches a Federal Lawsuit
April 8, 2013 12:17 PM
The lawsuit accuses Fisker of not giving employees 60 days notice before the mass layoffs
Fisker Automotive has been on the lookout for a buyer in order to stay afloat, but the automaker is running out of both time and options -- resulting in
major employee layoffs
Fisker announced Friday that it had laid off 75 percent of its staff, which equates to about 160 employees.
The automaker didn't provide any severance payments or formally alert California about the layoffs. It did, however, pay employees for unused vacation time.
"Our efforts to secure a strategic alliance or partnership are continuing in earnest, but unfortunately we have reached a point where a significant reduction in our workforce has become necessary," Fisker Automotive said in a statement.
"We expect that at the end of the day we will have retained approximately 25 percent of our workforce. The company regrets having to terminate any of its hardworking and talented people. But this was a necessary strategic step in our efforts to maximize the value of Fisker's core assets."
As if this wasn't bad enough, Fisker is now facing a federal lawsuit that accuses the company of not giving employees advanced notice of the mass layoffs. Under the U.S. Worker Adjustment and Retraining Notification Act, workers are supposed to have 60 days notice before being laid off.
Fisker could have to pay the employees the wages they would've earned in that 60-day period.
The lawsuit was filed Friday in the U.S. District Court in Santa Ana, California.
placed its U.S. workers on furlough
a couple of weeks ago to try and keep costs down while it searches for an investor. This means that the U.S. workforce had a temporary, unpaid leave until the company got back on its feet.
In April 2010, Fisker received $529 million in
, which were part of a program to progress development of high-tech vehicles. The loans were also meant to revamp a closed General Motors plant in Wilmington, Delaware for Fisker EV production. However, Fisker fell a little behind on its production schedule, and in May 2011,
DOE froze the loans due to "unmet milestones."
Fisker had only drawn $193 million of it at that point.
Due to these money issues, Fisker is having a hard time securing funds to make its second car -- the Fisker Atlantic. Fisker is now looking for investors to help out with the financial situation so Atlantic production can begin.
Fisker's investor solution has drawn a lot of criticism though, because two potentials have been Chinese companies -- Zhejiang Geely Holding Group and Dongfeng Motor Group Co. This is seen as an issue because Fisker received U.S. taxpayer dollars to fund its Karma plug-in.
The Karma itself has had to be recalled in the past too, as battery supplier A123 Systems (which
last year and was later
acquired by Chinese firm
Wanxiang Group for about $260 million) vowed to replace nearly 600 Karma batteries for $55 million in 2012.
Last month, Fisker's things started getting worse for Fisker when Henrik Fisker, who co-founded Fisker Automotive in 2007,
stepped down as executive chairman
citing "several major disagreements" with "Fisker Automotive executive management on the business strategy."
Fisker Automotive is expected to make a loan payment to the DOE on April 22.
The Detroit News
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
Fisker Automotive Forced to Put U.S. Employees on Furlough
March 28, 2013, 12:16 PM
Fisker Automotive's Executive Chairman Resigns
March 13, 2013, 5:25 PM
Battery Maker A123 Systems Acquired by Chinese Firm for $260M
December 10, 2012, 8:10 AM
House Committee Looks into Terms of DOE's Fisker Automotive Loans
October 23, 2012, 2:50 PM
Official: A123 Systems Files for Bankruptcy
October 16, 2012, 4:44 PM
Jaguar I-PACE – Jaguar’s New Electric Concept / New SUV
November 16, 2016, 5:00 AM
Car Insurance - The Hidden Discriminatory Practise
October 18, 2016, 5:00 AM
End of the Road for the Audi R8 e-tron
October 15, 2016, 5:00 AM
Paralyzed Race Car Driver Recieves Nevada License
October 12, 2016, 5:00 AM
Take a Glance at the Cars of the Paris 2016 Motor Show
October 4, 2016, 5:00 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Most Popular Articles
Phillips 55’ 4K Smart TV – Is This Really a Deal? We Think So.
November 25, 2016, 9:44 AM
Sales Battle - Apple iPad Mini vs Samsung Galaxy Tab
November 29, 2016, 12:36 AM
Echo Dot is a Best Seller - Sold Out Until December 1, 2016.
November 26, 2016, 6:00 AM
PlayStation 4 Pro – 4K Console for 4K TVs
November 28, 2016, 1:00 AM
Star Wars Android Smartphones coming to a Japanese Galaxy Near You
November 26, 2016, 5:00 AM
Latest Blog Posts
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
Foldable Cardboard ”EcoHelmet” wins James Dyson Award’s Top Prize
Nov 18, 2016, 2:39 AM
Scientists Discover Roundest Object Ever Spotted in Universe
Nov 17, 2016, 1:00 AM
Smallest Device Lets You Print Almost from Anywhere
Nov 16, 2016, 9:32 AM
Cancer Screening in the Community Is there a link between Cancer and Poverty?
Nov 15, 2016, 8:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information