Fisker has received bankruptcy court approval to sell its remaining fleet of Ocean SUVs, some for as little as $2,500. This decision comes after the company significantly reduced the prices on vehicles that were initially sold to some customers for as much as $80,000 in Canada.
During a bankruptcy hearing in Delaware on Tuesday, Judge Brendan L. Shannon approved the sale of approximately 3,300 Fisker vehicles for $46.25 million to American Lease LLC, a company that leases cars and SUVs to New York City-based Uber and Lyft drivers. As we previously reported, the vehicles “in reasonably good working order” will be sold to American Lease for $16,500 each, while those needing at least $5,000 in repairs could be sold for as little as $2,500, according to court documents.
The substantial discount represents a stark contrast to the prices customers paid for the Fisker Ocean, even after slashing prices. Earlier this year, in an attempt to boost sales and keep the company alive, Fisker cut prices by nearly 40% in Canada and the US, brining the starting price down from C$80,000 to C$49,000.
The Justice Department’s bankruptcy watchdog challenged the transaction, labeling it a “fire sale” of Fisker’s remaining fleet. Despite this, company advisers contended that the sale was the best option available. Judge Shannon agreed, noting the urgency of approving the sale due to Fisker’s diminishing cash reserves, adding that it was a miracle they were able to find a buyer at all.
“It might be regarded as miraculous that a deal came together at all,” Judge Shannon commented. (via InsideEVs)
On the other side, support for the sale has come from various stakeholders, including Fisker’s sole secured lender and the official committee of unsecured creditors. Chief Restructuring Officer John DiDonato highlighted in a sworn statement that American Lease was uniquely positioned to purchase Fisker’s remaining inventory and provide a critical financial lifeline.
Despite the bankruptcy filing, Fisker has issued two recalls covering all Ocean electric SUVs due to a potential issue with the vehicle’s water pump, and a defect with the exterior door handles which can cause them to stick and not open.
