Fisker Automotive Having Financial Issues, 160 Workers Dismissed – Fisker Automotive has laid off 160 employees because it encountered financial difficulties in a deal that will affect the fate of the carmaker. Fisker Automotive is known for its plug-in hybrid sports car. Things like this quite often happen because the economic growth is uncertain. Actually there are many factors that can bring an automaker into such a dramatic condition. Especially for Fisker Automotive, it failed to deal with a partner in regard to automotive business.
Fisker Automotive is having financial issues
Formerly the company employed 40 people. They were the ones responsible in ensuring that the company kept running. While they were trying to give their best, the company was approaching Chinese businesses to see if any of them are interested to invest some money for Fisker. Unfortunately, none of the three meetings ended in a treaty. Fisker recently had hired Kirkland & Ellis who is now bankrupt. The move was taken to find out what options the company had under its belt. Simultaneously, the company continued to engage with some parties seeking investment opportunities. One of the laid off employees said that all workers were told to attend a meeting. It was a very important meeting since it was the time when all of them were dismissed.
Fisker Automotive is experiencing severe financial crisis at the moment. The company is now on the way to collect some $ 500 million. It’s nothing but aimed to resume the production of the Karma. The car was previously built in Finland. This is already 1 year that Fisker stop producing. It happens because of A123 Systems Inc., which was responsible for supplying batteries filed for bankruptcy. The federal government froze the loan so that it affected Fisker.
Looking back, Fisker Automotive received funding of $ 529 in connection with the building of Atlantic. The money handed over by the Department of Energy. The day when the Karma released was the day of determination. It turned out that the car was suffering from low sales and forced DOE to freeze the $ 336 million. In connection with the loan, this April should be the first month Fisker paid the loan from the government. This first payment involves a large nominal, $ 192. In case you want to know what Chinese companies that Fisker is trying to make a deal with, they are Geely Holding Group, Wanxiang Group Corp., and a business that is run by the Chinese government. Sources believe that if Fisker get back its right to obtain loans from the Energy Department, many investors would be more interested.