Fisker Ocean owners can breathe a small sigh of relief after a bankruptcy judge ruled the embattled EV startup would be responsible for the cost recalls. Fisker previously tried to shift the cost to the owner.
US Bankruptcy Court Judge Thomas Horan has ruled Fisker will bear the costs of parts and labour for the recall of the ill-fated Fisker Ocean SUV. The ruling was passed after a hearing involving the company, the Fisker Owners Association (FOA), and New York-based American Lease, which is buying about 3,000 unsold Oceans for $46 million.
Five different recalls have been issued for the Ocean SUV in the US, some of which require spare parts and other software updates. Fisker initially offered to pay for faulty outer door handles and water pumps but asked owners to pay for labour. The company then agreed to bear all the costs but backtracked and asked owners to pay for the repairs.
The US Department of Justice stepped in with a complaint in bankruptcy court, which resulted in a favorable outcome for Ocean owners.
Despite Fisker’s liquidation, the Ocean EVs will still connect to the cloud for five years after American Lease agreed to pay the bill for keeping the servers running.
The FOA has also been granted control of the Fisker After Sales Tool (FAST) diagnostic software.
