Bob Lutz, Wanxiang Group Offer $20 Million for Fisker Automotive
May 24, 2013 10:45 AM
comment(s) - last by
The company was valued at nearly $2 billion in 2011
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
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
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.
This article is over a month old, voting and posting comments is disabled
RE: Only one reason to do this and that's kick backs...
5/25/2013 7:43:17 AM
Sure it does, you're just not very bright.
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
Tesla Repays $465 Million DOE Loan 9 Years Early
May 22, 2013, 10:20 PM
Fisker Automotive Expected to File Chapter 11 Bankruptcy This Week
April 10, 2013, 8:52 AM
Fisker Automotive Lays Off 75 Percent of Staff, Catches a Federal Lawsuit
April 8, 2013, 12:17 PM
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
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
Exclusive: If Intel and Micron's "Xpoint" is 3D Phase Change Memory, Boy Did They Patent It
July 29, 2015, 10:52 PM
Windows 10 to Get New Features in October Service Release 2 (SR2)
July 30, 2015, 5:50 PM
Cortana Help Button is Coming Soon for $23
July 30, 2015, 5:07 PM
EA Set to Milk the Star Wars Cash Cow w/ Video Games
July 31, 2015, 12:36 PM
Quick Note: Apple Watch to Get Brick and Mortar Boost From Best Buy
July 27, 2015, 3:00 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information