Fisker's Austrian arm files for reorganization following production stop

08 May 2024

A few days ago Fisker's production partner for the Ocean EV, Magna Steyr, announced that it stopped building the vehicles for the struggling company. And today, Fisker's Austrian arm, which oversaw the managing of the contract manufacturing performed by Magna Steyr in Austria, has filed for reorganization and court protection from creditors.

This is roughly equivalent to filing for Chapter 11 bankruptcy protection in the US. That may also happen for Fisker in the US in the coming weeks, as the company has said in late April that it expects to go bankrupt within 30 days unless a miracle happens - which in this case would be it getting relief from its creditors or managing to raise some extra money somehow.

That doesn't look very likely considering how few investors would want to jump onto what is more and more being perceived as a sinking ship.

Regarding the move in Austria, Fisker issued this statement:

By filing to open a restructuring proceeding via self-administration, Fisker Austria gains breathing room to protect its business while it conducts a value-maximizing strategic transaction or other sale of assets. Under court protection, the entity will continue to pay its employees and sell and service vehicles. Fisker’s entities outside Austria are not included in this restructuring proceeding. Fisker continues to diligently explore all available options to maximize the value of its global business.

About 10,000 units of the Fisker Ocean were built last year by Magna Steyr in Graz, Austria. The original plan was to build 20,000 to 23,000 each year, but that never happened. Magna Steyr owner Magna International said last week it was facing lower than projected sales and earnings after its business with Fisker was halted. Magna International CEO Swamy Kotagiri said the company was assuming no further production of the Ocean and a resulting $400 million hit for the year as a consequence.

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