Fisker Automotive founder Henrik Fisker with his plug-in hybrid, the $103,000 Karma.
Fisker Automotive Inc. has confirmed it is considering a variety of options that reportedly could include the sale of a controlling stake to one of China’s largest domestic automakers.
But while the start-up plug-in hybrid maker has confirmed it is discussing options with potential partners from at least “three continents,” Fisker insiders caution that some recent, published reports may be wildly off the mark in terms of the bids it is considering.
“With regards to a sale, given the confidential nature of this matter, at this point in our process we can only confirm that the company has received detailed proposals from multiple parties in different continents which are now being evaluated by the company and its advisors,” echoed Fisker spokesman Russell Datz in an e-mail response to questions from TheDetroitBureau.com.
The company is “pleased with the level of interest from potential partners which underscore the attractiveness and relevance of Fisker’s proven EVe powertrain technology, design and strategy,” he said.
But it remains to be seen if any of the proposals Fisker is now fielding will come to fruition as the maker struggles to raise capital to move ahead. Founder Henrik Fisker recently revealed his California-based firm has so far raised ”over a billion dollars,” but he also stressed that it needs still more to bring to market its second model, the Atlantic. That project was stalled following the U.S. government’s decision to freeze $329 million in loan money from a program intended to promote the development of clean, high-mileage automobiles.
Last week, reports surfaced that Dongfeng Motor Corp., which is based in Wuhan, China, had made an offer for 85% of Fisker’s share and control of the company.
The decision to seek a major investor comes as Fisker struggles to overcome a number of challenges. It has faced several recalls on its original product, the Karma, a luxury plug-in hybrid. Production of that model was halted last year after battery supplier A123 Systems Inc. filed for bankruptcy.
But following a speech at the Chicago Auto Show this month, Chairman Henrik Fisker said that the company would begin making vehicles again “fairly soon.”
Finding an outside investor could help Fisker, which is based in the Los Angeles suburb of Anaheim, move ahead with its turnaround and give it the funds to pay back the loans it already received from the U.S. government before the additional moneys were frozen. Fisker owes the U.S. Energy Department about $200 million from a loan program the agency shelved last year following the bankruptcy filing of solar-panel maker Solyndra LLC.
The Karma, which sells for more than $100,000, is an advanced plug-in hybrid car that runs on an electric motor and has an on-board gasoline-burning engine that can take over when the battery runs down.
Fisker, led by Chief Executive Officer Tony Posawatz – formerly head of General Motors Chevrolet Volt program — said in December that it was working with Evercore Partners Inc. to find potential investors or partners. Without a partner or a buyer by midyear, Fisker may face a cash crunch, according to observers, who have studied the company’s financial position.
Fisker also hired Chicago-based Huron Consulting Group Inc. to help run day-to-day operations, with Huron’s Hugh Sawyer serving as chief administration officer.
If Dongfeng’s bid wins and a deal is done, the company may eventually move Fisker production to China, one of the sources said.
Fisker currently outsources production of the Karma to Valmet Automotive, which is based in Finland. It has been hoping to assemble the Atlantic itself in a Delaware plant it acquired from General Motors.