Bankrupt EV startup Fisker is reversing course just a few days after telling owners that they would have to pay labor costs for recall repairs. The company edited the FAQ page on its website to say “Fisker will provide the necessary parts (including the labor) at no cost to you.”
Fisker originally broke the bad news to thousands of Ocean SUV owners on Sunday night when it published the FAQ. The company said three of the five recalls — one for sudden loss of power, one for incorrectly displayed warning lights, and one for reduction in regenerative breaking — can be resolved with over-the-air software updates at no cost.
The other two recalls require parts and labor, though. Some of the Oceans have faulty door handles. And all of the SUVs need an electric water pump replaced, which was causing some vehicles to lose power. Fisker originally told owners that it would cover the cost of the parts, but that they’d have to pay for the inspection and repair process at an authorized service provider. (The company says it will send owners a list of these providers by “the end of September 2024.”)
The reversal comes as EV startup Fisker prepares to enter the fourth month of its Chapter 11 bankruptcy process. Fisker recently reached a settlement plan with its biggest secured lender, the committee of unsecured creditors, contract manufacturer Magna, and other parties involved in the bankruptcy. After a few months of back-and-forth, which occasionally got heated, the parties agreed on how to split up the proceeds of a liquidation of Fisker’s assets. The judge in the case has set a hearing for early October where that settlement plan might be approved.
The company already inked a sale of virtually all of its remaining vehicle inventory to New York vehicle leasing company American Lease for up to $46.25 million. Now it has to liquidate its remaining assets — allegedly more than $1 billion worth, largely consisting of manufacturing equipment that was used at Magna’s factory in Austria — in order to pay back its many creditors.
Update: This story was originally published on September 16 and was updated on September 18 to reflect Fisker’s pivot.
