Fisker in major financial trouble 0

fisker-karmaMajor American car brand Fisker is in serious financial trouble it has been confirmed. The situation has got so bad that recently three quarters of staff has been let go, meaning almost 160 staff members have been let go.

Fisker produces luxury electric cars. This particular segment of the market has failed to take off in recent months. Although the United States Government has been highly supportive of the company, providing them with loans and much more. They were keen on the development of green energy, helping to ease the enormous amount of carbon emissions.

 

75% of Fisker workforce laid off

On reducing the workforce by 75 per cent, Fisker released a statement explaining why they had come to this conclusion.  They said “Over the past several months we have been considering strategic alternatives that would allow the company to work through its current financial challenges. 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.”

With just 25 per cent of the workforce retained, it looks like there is quite a long way to go before anything can be resolved.

The company was founded in 2007 by Henrik Fisker, a former BMW and Aston Martin designer and his business partner Bernhard Koehler. Not everything has gone according to plan. The Karma model came with a huge price tag of £65,293 and did not sell in great numbers. Celebrity buyers included Leonardo DiCaprio, Aston Kutcher and Justin Bieber.

The car had plenty of production problems including software glitches. Recalls were necessary to fix problems, which left a dent on the company’s reputation.

On top of that Fisker were majorly affected by Hurricane Sandy in the East Coast of America. 300 of their vehicles were taken out. Suppliers shortages also occurred thanks to the natural disaster.

The company could be declared bankrupt in order to protect its finances rumours state. This has not been confirmed however.

53 managers and executives will stay with the company. Their main job role will be to chase any potential buyers of assests. Reports state that Fisker could seek investment from China, with several companies apparently interested. One of these companies include Zheijangg Geely, who currently part own Volvo.