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Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year

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Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year
News

News

Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year

2024-06-19 01:28 Last Updated At:01:30

Electric vehicle maker Fisker filed for Chapter 11 bankruptcy protection, the second electric startup to do so in the last year as even industry leaders struggle to lure more buyers beyond the early adapters of the technology.

Fisker Group Inc. said in a filing with the U.S. Bankruptcy Court in Delaware that its estimated assets are between $500 million and $1 billion. It estimated liabilities are between $100 million and $500 million, with between 200 and 999 creditors.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the company said in a prepared statement late Monday. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

The 7-year-old electric car company was founded by designer Henrik Fisker, who has been its chairman and CEO. He designed the company's 2022 Ocean all electric SUV as well as the luxury plug-in hybrid Karma that was launched in 2011. Fisker is also known for leading the development of the BMW Z8 sports car.

It is the second automotive venture led by Henrik Fisker to fail.

Fisker, based in Manhattan Beach, California, and other startups like Lordstown Motors Corp., sought to take on industry leaders like Tesla, and big automakers in Detroit, which have entered the market aggressively.

However, EV sales have slowed as manufacturers have attempted to push electric vehicles into the mainstream. Those sales have been curbed both by a lack of infrastructure, as well as rising inflation that have made taking on car loans more expensive.

Electric vehicles grew only 3.3% to nearly 270,000 during the first three months of this year, far below the 47% growth that fueled record sales and a 7.6% market share last year, according to J.D. Power. The slowdown, led by Tesla, confirms automakers’ fears that they moved too quickly to pursue EV buyers. The EV share of total U.S. sales fell to 7.15% in the first quarter.

That has led to huge price cuts and job cuts at leading companies like Tesla.

Another electric startup, Rivian, said this year that it was pausing construction of its $5 billion manufacturing plant in Georgia to speed production and save money.

Lordstown sought bankruptcy protection last summer, as it dealt with funding difficulties.

The Fisker bankruptcy filing comes as the Biden administration pushes to dramatically raise EV sales as part of President Joe Biden’s agenda to slow climate change. Republicans led by presumptive nominee Donald Trump are turning EVs into a campaign issue, deriding Biden’s efforts to promote electric vehicles as a “radical plan” that is unfair for consumers and amounts to government overreach.

Auto companies are investing billions in factories and battery technology to speed up the switch to EVs to cut pollution, fight climate change — and meet an Environmental Protection Agency requirement that 56% of all new vehicle sales be electric by 2032.

Henrik Fisker's first attempt to start an electric car company also ended in 2013. That 2013 collapse culminated a long downward spiral that began after Fisker received a $529 million loan commitment from the U.S. Department of Energy.

It was later learned that the U.S. Energy Department did not realize for four months that the flailing company, called Fisker Automotive Inc., had missed a crucial production target that was required as part of a half-billion dollar government loan. The mistake allowed Fisker to obtain an additional $32 million in government funding before the loan was suspended in June 2011.

Fisker Inc. and other U.S. subsidiaries, along with subsidiaries outside the U.S., are not currently included in the bankruptcy filing. Fisker says that it’s in advanced talks with financial stakeholders about debtor-in-possession financing and selling its assets.

AP Writer Matthew Daly in Washington, D.C., contributed to this report

FILE - Fisker Automotive's Fisker Karma, a sports luxury plug-in hybrid car, is displayed at the 2010 Los Angeles Auto Show in Los Angeles, Cal, Nov. 18, 2010. Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection in a period when even the top manufactures in the industry a struggling. Its operating subsidiary, Fisker Group Inc., said in its filing that its estimated assets were between $500 million and $1 billion. (AP Photo/Damian Dovarganes, File)

FILE - Fisker Automotive's Fisker Karma, a sports luxury plug-in hybrid car, is displayed at the 2010 Los Angeles Auto Show in Los Angeles, Cal, Nov. 18, 2010. Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection in a period when even the top manufactures in the industry a struggling. Its operating subsidiary, Fisker Group Inc., said in its filing that its estimated assets were between $500 million and $1 billion. (AP Photo/Damian Dovarganes, File)

President Joe Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election.

Meanwhile, Vice President Kamala Harris is being thrust into the most scrutinizing of spotlights, suddenly the leading candidate to succeed Biden as the presumptive Democratic presidential nominee and her party’s main hope of defeating Trump.

Follow the AP’s Election-2024 coverage at: https://apnews.com/hub/election-2024.

Here's the Latest:

As President Joe Biden was deciding to withdraw from the race Sunday morning, Vice President Kamala Harris had multiple phone conversations with him, according to a person familiar who spoke only on background to more freely divulge details.

Harris was at the vice president’s residence at the Naval Observatory in Washington. She was surrounded by family and staff and wore a hooded Howard University sweatshirt, workout sweats and sneakers, the person said.

She spent 10-plus hours Sunday placing calls to more than 100 party leaders, members of Congress, governors, labor leaders, and leaders of advocacy and civil rights organizations. Harris told all that she was grateful Biden endorsed her upon leaving the race but she planned to earn the Democratic presidential nomination in her own right.

The vice president also called her pastor, Amos Brown III, who, along with his wife, prayed over her.

Harris arranged lunch and dinner for assembled aides. They ate afternoon sandwiches and salad and pizza in the evening. Harris’ pizza had anchovies, which the person said is her go-to topping.

— Will Weissert

“The vice president is smart and strong, which will make her a good president,” Beshear said during a Monday morning appearance on MSNBC. “But she’s also kind and has empathy, which can make her a great president.”

Beshear praised Harris’ resume as a former prosecutor and says she’s ready to assume the presidency. He says he’s willing to do everything he can to support her.

Asked if he’s open to potentially joining the ticket, Beshear said he loves his job as governor. “The only way I would consider something other than this current job is if I believed I could further help my people and to help this country,” he said.

Beshear defeated Trump-endorsed Republicans to win the governorship in 2019 and to win reelection last year in his Republican-leaning state.

Speaking on Monday to CBS, the West Virginia Democrat-turned-independent said “I don’t need that in my life.”

Manchin had been the latest senator to call for Biden to exit the 2024 race before Sunday’s announcement by Biden that he would do just that.

Manchin had already mulled a late-breaking 2024 White House bid of his own but said in February after a listening tour that he didn’t want to be a “spoiler.” As a Democrat, he had often bucked his own party’s leadership.

Luxembourg Foreign Minister Xavier Bettel praised President Joe Biden for his announcement that he’s ending his bid for reelection.

“It takes courage for a politician to say ‘I’m a bit old and I’m not capable of doing it anymore,’” Bettel said, describing it as a “courageous and difficult decision” by Biden.

Sen. Kirsten Gillibrand, a Democrat from New York, endorsed Harris and called her “an unwavering champion for families, workers and justice.”

Gillibrand, who ran against Harris in the 2020 Democratic presidential primary, said in a statement Monday that the vice president is “incredibly well-qualified, with experience as a prosecutor, as a lawmaker, and as a leader on the world stage.”

“Now is the time to unite,” the senator said. “VP Harris has the grit and toughness to beat Donald Trump and I’m eager to join her in this fight.”

ActBlue, the Democratic fundraising platform, announced that it had collected $46.7 million as of 9 p.m. ET from small-dollar donations for Vice President Harris’ campaign.

The Biden campaign and affiliated groups previously had about $96 million in cash on hand. The Republican National Convention, by contrast, reported a campaign fund of $102 million in June.

Donald Trump’s campaign has spent the last year and a half viciously attacking Joe Biden, ridiculing his policies, mocking his fumbles and relishing a rematch they felt they were winning.

But it has also spent weeks preparing for the possibility that he might exit the race, readying a bevy of attacks against Vice President Kamala Harris that it unleashed as soon as Biden made his stunning announcement Sunday that he would step aside.

Biden soon after endorsed Harris, who was quickly winning support from Democrats to be the party’s nominee.

The shakeup less than four months before Election Day lays out new challenges for Trump’s team, which had until recently been focused on contrasting the former president’s vigor and mental acuity with Biden’s.

Read more about the Trump campaign's pivot toward Harris.

The Democratic delegations of multiple states have decided to back Vice President Kamala Harris for the party nomination at next month’s national convention.

“Tonight, all 168 delegates of the North Carolina Democratic Party made history,” North Carolina party chair Anderson Clayton said in a post on the social platform X.

In South Carolina, party chair Christale Spain said in an email statement Sunday night that that state’s delegation met virtually. The vice president “has been fully vetted, and she has earned our unwavering support,” Spain said.

Harris received her first delegates earlier in the day from Tennessee, when the state party posted on X that its delegation voted during a meeting to back her.

Another state where the switch was made was New Hampshire, where the 25 pledged delegates voted unanimously Sunday night to endorse Harris.

The nation’s six Black state attorneys general threw their support behind Vice President Harris. In a statement on X, they laid out her qualifications and said she “has staunchly defended our right to choose and preserved our most sacred right to vote. There is no one more qualified to lead and continue to uphold the values of our great nation.”

The statement listed Letitia James, New York; Kwame Raoul, Illinois; Anthony Brown, Maryland; Andrea Campbell, Massachusetts; Keith Ellison, Minnesota; and Aaron Ford, Nevada.

Shortly after President Joe Biden announced that he would drop his reelection campaign, Democratic National Committee Chair Jaime Harrison had a message: There would be no automatic coronation for his replacement.

“In the coming days, the party will undertake a transparent and orderly process to move forward,” Harrison said in a statement. “This process will be governed by established rules and procedures of the party. Our delegates are prepared to take seriously their responsibility in swiftly delivering a candidate to the American people.“

The comment reflected the reality that while Vice President Kamala Harris is emerging as the prohibitive favorite to become the nominee — backed already by Biden and many Democrats — it’s not so simple. And for now, the party isn’t offering many details on what happens next.

Read more about the process of replacing Biden on the Democratic ticket.

FILE - Sen. Kamala Harris, D-Calif., speaks before the Senate Select Committee on Intelligence on Capitol Hill, June 13, 2017, in Washington. She's already broken barriers, and now Vice President Harris could soon become the first Black woman to head a major party's presidential ticket after President Joe Biden's ended his reelection bid. The 59-year-old Harris was endorsed by Biden on Sunday, July 21, after he stepped aside amid widespread concerns about the viability of his candidacy. (AP Photo/J. Scott Applewhite, File)

FILE - Sen. Kamala Harris, D-Calif., speaks before the Senate Select Committee on Intelligence on Capitol Hill, June 13, 2017, in Washington. She's already broken barriers, and now Vice President Harris could soon become the first Black woman to head a major party's presidential ticket after President Joe Biden's ended his reelection bid. The 59-year-old Harris was endorsed by Biden on Sunday, July 21, after he stepped aside amid widespread concerns about the viability of his candidacy. (AP Photo/J. Scott Applewhite, File)

Supporters of Republican presidential candidate former President Donald Trump and Republican vice presidential candidate Sen. JD Vance, R-Ohio, carry a sign before a campaign event, Saturday, July 20, 2024, at Van Andel Arena in Grand Rapids, Mich. (AP Photo/Carlos Osorio)

Supporters of Republican presidential candidate former President Donald Trump and Republican vice presidential candidate Sen. JD Vance, R-Ohio, carry a sign before a campaign event, Saturday, July 20, 2024, at Van Andel Arena in Grand Rapids, Mich. (AP Photo/Carlos Osorio)

Supporters of Republican presidential candidate former President Donald Trump and Republican vice presidential candidate Sen. JD Vance, R-Ohio, hold signs in the audience at a campaign event, Saturday, July 20, 2024, at Van Andel Arena in Grand Rapids, Mich. (AP Photo/Carlos Osorio)

Supporters of Republican presidential candidate former President Donald Trump and Republican vice presidential candidate Sen. JD Vance, R-Ohio, hold signs in the audience at a campaign event, Saturday, July 20, 2024, at Van Andel Arena in Grand Rapids, Mich. (AP Photo/Carlos Osorio)

Republican vice presidential candidate Sen. JD Vance, R-Ohio, arrives to speak before Republican presidential candidate former President Donald Trump at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican vice presidential candidate Sen. JD Vance, R-Ohio, arrives to speak before Republican presidential candidate former President Donald Trump at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump speaks at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump speaks at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump arrives at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump arrives at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Mattia Crovino, of Bologna, Italy, watches a news broadcast announcing that President Joe Biden has dropped out of the 2024 race for the White House, Sunday, July 21, 2024,. (AP Photo/David Goldman)

Mattia Crovino, of Bologna, Italy, watches a news broadcast announcing that President Joe Biden has dropped out of the 2024 race for the White House, Sunday, July 21, 2024,. (AP Photo/David Goldman)

Anna Filipic, of Washington, holds her daughter Louisa Monje, 2, outside the White House in Washington, Sunday, July 21, 2024, as they show support for President Joe Biden. Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

Anna Filipic, of Washington, holds her daughter Louisa Monje, 2, outside the White House in Washington, Sunday, July 21, 2024, as they show support for President Joe Biden. Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

Republican presidential candidate former President Donald Trump speaks at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump speaks at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump arrives at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump arrives at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

George Ledbetter watches news of President Joe Biden dropping out of the 2024 race for the White House at They Say Restaurant in Harper Woods, Mich., Sunday, July 21, 2024. (AP Photo/Paul Sancya)

George Ledbetter watches news of President Joe Biden dropping out of the 2024 race for the White House at They Say Restaurant in Harper Woods, Mich., Sunday, July 21, 2024. (AP Photo/Paul Sancya)

A news crawl appears on the side of the Fox News building in New York, Sunday, July 21, 2024, in the wake of President Joe Biden dropping out of the 2024 race for the White House. (AP Photo/Craig Ruttle)

A news crawl appears on the side of the Fox News building in New York, Sunday, July 21, 2024, in the wake of President Joe Biden dropping out of the 2024 race for the White House. (AP Photo/Craig Ruttle)

Republican presidential candidate former President Donald Trump speaks at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump speaks at a campaign rally, Saturday, July 20, 2024, in Grand Rapids, Mich. (AP Photo/Evan Vucci)

A view of the White House is seen in Washington, Sunday, July 21, 2024. President Joe Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

A view of the White House is seen in Washington, Sunday, July 21, 2024. President Joe Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

FILE - Vice President Kamala Harris embraces President Joe Biden after a speech on healthcare in Raleigh, N.C., March. 26, 2024. President Joe Biden dropped out of the 2024 race for the White House on Sunday, July 21, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Matt Kelley, File)

FILE - Vice President Kamala Harris embraces President Joe Biden after a speech on healthcare in Raleigh, N.C., March. 26, 2024. President Joe Biden dropped out of the 2024 race for the White House on Sunday, July 21, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Matt Kelley, File)

A handmade sign for Vice President Kamala Harris appears on a lawn, Sunday, July 21, 2024, in Washington. She’s already broken barriers, and now Harris could soon become the first Black woman to head a major party's presidential ticket after President Joe Biden’s ended his reelection bid. The 59-year-old Harris was endorsed by Biden on Sunday, after he stepped aside amid widespread concerns about the viability of his candidacy. (AP Photo/Jacquelyn Martin)

A handmade sign for Vice President Kamala Harris appears on a lawn, Sunday, July 21, 2024, in Washington. She’s already broken barriers, and now Harris could soon become the first Black woman to head a major party's presidential ticket after President Joe Biden’s ended his reelection bid. The 59-year-old Harris was endorsed by Biden on Sunday, after he stepped aside amid widespread concerns about the viability of his candidacy. (AP Photo/Jacquelyn Martin)

Balloons for President Joe Biden are brought to the White House in Washington, Sunday, July 21, 2024. Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

Balloons for President Joe Biden are brought to the White House in Washington, Sunday, July 21, 2024. Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

Hugh Kieve, 10, of Washington, holds a sign outside the White House in Washington, Sunday, July 21, 2024, as he and his family come out to show support for President Joe Biden. Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

Hugh Kieve, 10, of Washington, holds a sign outside the White House in Washington, Sunday, July 21, 2024, as he and his family come out to show support for President Joe Biden. Biden dropped out of the 2024 race for the White House on Sunday, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Susan Walsh)

FILE - President Joe Biden arrives for the NATO summit in Washington, July 10, 2024. Biden dropped out of the 2024 race for the White House on Sunday, July 21, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Jacquelyn Martin, File)

FILE - President Joe Biden arrives for the NATO summit in Washington, July 10, 2024. Biden dropped out of the 2024 race for the White House on Sunday, July 21, ending his bid for reelection following a disastrous debate with Donald Trump that raised doubts about his fitness for office just four months before the election. (AP Photo/Jacquelyn Martin, File)

FILE - Vice President Kamala Harris speaks at an event May 1, 2024, in Jacksonville, Fla. She’s already broken barriers, and now Harris could soon become the first Black woman to head a major party's presidential ticket after President Joe Biden’s ended his reelection bid. The 59-year-old Harris was endorsed by Biden on Sunday, July 21, after he stepped aside amid widespread concerns about the viability of his candidacy. (AP Photo/John Raoux, File)

FILE - Vice President Kamala Harris speaks at an event May 1, 2024, in Jacksonville, Fla. She’s already broken barriers, and now Harris could soon become the first Black woman to head a major party's presidential ticket after President Joe Biden’s ended his reelection bid. The 59-year-old Harris was endorsed by Biden on Sunday, July 21, after he stepped aside amid widespread concerns about the viability of his candidacy. (AP Photo/John Raoux, File)

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