Cut Out: Fisker Furloughs a Week of Pay as It Prepares Government Loan Payment
Things aren't looking good for Fisker Automotive. First, we hailed it as innovative and fun while being green. They we questioned the company's stability and the $100,000 Fisker Karma's reliability. And now onto its third CEO in a matter of months and having just had its namesake Henrik Fisker step down from the company, we've come to question its long-term prospects. This week, Fisker announced it was furloughing 200 U.S.-based employees from March 22 to April 1 to save a little cash. Yeah, we're worried for them. The company has run into nothing but problems since its inception in 2007, fraught with delays and the better part of its guaranteed $529 million government loan becoming not-so-guaranteed at the last minute. Fisker has an undisclosed amount due to the federal government in a month from the money it did receive. The company is saving every cent it can.A company statement issued by Fisker said furloughing employees is "a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements and is not expected to materially impair Fisker's operations or the scope or timing of Fisker's future business plans." Don't panic, it says. Fisker has been looking at bringing on a Chinese partner to keep its finances afloat. First, Fisker was talking to Zhejiang Geely Holding Group, the owner of Volvo, which has only become a stronger company after its sale by Ford. Then, Fisker began negotiations with Dongfeng Motor Group. Both have hit snags because of the federal loan repayment terms. It's still scrounging around for options. Two weeks ago, Fisker founder Henrik Fisker left the company over disagreements with the management team. The day after, he put his money where his mouth is, buying a Fisker Karma for himself. With a host of products planned between convertible and wagon versions of the Karma sedan to a proposed smaller car called the Fisker Atlantic, the company isn't lacking for ideas. It's just lacking for ways to make them happen. Source: Automotive News (Subscription required)
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