Chinese multinational to take over Fisker
We like to keep an eye on the developments and companies involved with alternative fuels and we’ve talked about both Tesla and Fisker here – the former being a great example of what can be done with the right technology, marketing and targeting, whilst the latter has suffered a pretty public meltdown due to some of its vehicles almost literally melting down due to extreme weather.
Well it now appears that Fisker Automotive is on the verge of being sold to a Chinese multinational – Wanxiang Group – which has auctioned the premium plug-in hybrid car maker for US$149.2 million.
According to industry journal Automotive News, the Hangzhou-based Wanxiang Group – China’s larges automotive components supplier – placed the final winning bid after 19 rounds of bidding against Hybrid Tech Holding. This final bid is also slightly under six time what Fisker initially sought when it filed for bankruptcy in November of 2013.
The process is not over yet because the purchase has to be approved by the US Bankruptcy Judge Kevin Gross, which is expected to happen sometime this week.
As part of its Chapter 11 petition, Fisker listed assets of US$500 million as well as a debt of US$1billion and asked Judge Gross to allow Hybrid Tech to buy it for about US$25million. This didn’t come to pass due to objections related to unsecured creditors.
Wanxiang might have had another major interest to go into this bidding war for Fisker Automotive because the Chinese multinational already owns the assets of the now-defunct A123 Systems Inc – this is the company that supplied Fisker with the defective battery packs which caused the cars to burst into flames in the first place.
The potential acquisition of Fisker would put Wanxiang in a position where it could potentially restart the plug-in hybrid marque and expand it into the world’s biggest car market: China.
