Despite fierce opposition from federal agencies and creditors, Fisker’s bankruptcy plan has been greenlit by the Delaware bankruptcy court. The plan, which includes provisions to reimburse Ocean owners for recent recall costs and grant the Fisker Owners Association access to cloud services, has been met with mixed reactions.
Ocean owners have faced a tumultuous journey since the EV startup filed for Chapter 11 bankruptcy in June. The prospect of their vehicles becoming expensive paperweights has led many to attempt to sell their electric SUVs, but the market has proven resistant, even at scrap prices.
Trade ins have been blocked by carmakers wary of acquiring unsellable inventory. The bankruptcy of Fisker, an electric vehicle startup, left its owners facing unexpected challenges. While the company’s financial woes were apparent, the implications for vehicle maintenance were less so.
With a history of quality issues and multiple recalls, Fisker owners found themselves at the mercy of third-party garages for repairs, which they were initially required to pay for out of pocket. Following public backlash, Fisker initially agreed to cover repair costs, but later reversed this decision, placing the financial burden back on the owners.
This prompted legal action from the Department of Justice and the Securities and Exchange Commission, which investigated the company’s actions.
Ultimately, a settlement was reached, allowing Fisker to liquidate and providing some relief to owners, including free repairs for recalled vehicles (minus labor costs). Additionally, a deal was struck with American Lease to ensure continued support for Ocean SUVs, benefiting both owners and the Fisker Owners Association.
