Print 12 comment(s) - last by Noya.. on May 27 at 9:37 AM

Bob Lutz  (Source:
The company was valued at nearly $2 billion in 2011

Fisker Automotive has received an offer of $20 million from a team comprised of Bob Lutz and Wanxiang Group.

VL Automotive, a venture between former General Motors Co executive Bob Lutz and industrialist Gilbert Villarreal, and China parts maker Wanxiang Group have submitted a proposal to buy Fisker Automotive for $20 million in a prepackaged bankruptcy deal.

The $20 million is a long way away from the company's value nearly two years ago. In December 2011, Fisker said its total capitalization was about $2 billion. 

In April 2010, Fisker received $529 million in DOE loans progress development of high-tech vehicles. 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. 

In March, 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."

To make matters worse, the company was forced to put its U.S. workers on furlough and eventually laid off 75 percent of its workforce (or about 160 employees). Fisker even faced 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.

The cherry on the cake was Fisker's missed DOE payment at the end of April. 

While Fisker has crashed and burned, Tesla Motors, another American electric car company that received federal funding for clean energy from the Obama administration, has managed to pay its entire $465 million federal loan in full nine years earlier than expected. The company's sales for its Model S sedan are impressive and after deciding to issue more stock last week, Tesla used the proceeds to pay off its debt. 

Source: Reuters

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Only one reason to do this and that's kick backs...
By SAN-Man on 5/24/2013 11:16:59 AM , Rating: 3
Obviously they could liquidate for more...

But if they sell first, and let someone else liquidate, the new owners can make sure the execs get something for their generosity.


By Gungel on 5/24/2013 11:34:21 AM , Rating: 3
Of course not, he is interested in taking over Fisker because his new car the Destino is based on the Karma. All the money he invested into Destino would be lost if Fisker goes down.

By fteoath64 on 5/26/2013 6:51:32 AM , Rating: 2
These cunning SOBs, doing a second stage rip off of the government when the first stage fails. It does look like a good deal on paper from the government's perspective. Such an elaborate scam was planned from the beginning and so of the officials were certainly in on it.

Massive day light robberies happening in America every which way you look!.

By Argon18 on 5/24/2013 2:14:01 PM , Rating: 1
Yep, and all funded by you and I, courtesy of the corrupt Obama administration.

By Noya on 5/27/2013 9:37:13 AM , Rating: 2
Every administration is beyond corrupt, moron.

By SAN-Man on 5/25/2013 7:43:17 AM , Rating: 2
Sure it does, you're just not very bright.

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