Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
Fisker technicians have been using parts from pre-production vehicles and existing inventory to repair some customers’ cars, according to inside information provided to Business Insider on Wednesday.
Facing a backlog of customer service requests and a shortage of available parts, Fisker employees have reportedly removed parts from what some refer to as “donor cars” which include pre-production and production vehicles stored in La Palma, California.
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According to one current Fisker employee, the method has been applied to approximately 10% to 15% of cases over the past few months, particularly for customers in California.
The publication mentions reported it has seen an email exchange where a Fisker employee offered to fix a customers’ car using parts from another vehicle, stating that these parts were “good as new.”
A Fisker spokesperson has denied these claims to BI, stating, “No parts have been taken off these vehicles for use in customers’ cars.” The spokesperson acknowledged that parts may have been removed from engineering vehicles for analysis or to retrofit other engineering vehicles, but emphasized that this did not involve customer vehicles.
The employee stated, “It only happens if there’s a dire need for the part. Technicians are just doing this to help customers. Customers are basically begging for parts, and the mentality is: If we have parts available, let’s use them.”
The practice of using parts from pre-production and production vehicles reportedly began when Fisker started delivering vehicles in June 2023, according to three former employees.
Today, May 1st, marks the deadline for Fisker’s agreement with the investor as the startup engages in talks with automakers regarding a potential buyout to avert bankruptcy. Fisker’s shares closed 10.70 percent lower on Tuesday at $0.0500 per share.
As per Fisker’s SEC filing, the investor agreed to temporarily forbear from demanding immediate redemption of the investment to the company from April 21 until today, May 1st.
In a recent SEC filing, the EV startup Fisker disclosed it missed an $8.4 million installment payment on March 29, violating its agreement with the investor triggering the right to demand immediate redemption of their investment to the company.
Fisker has recently withdrawn all financial and operational guidance for 2024 and appointed both Deutsche Bank and PJT Partners as financial advisors to explore strategic alternatives.
The founder and chief executive told staff last week that the company is in talks with four automakers for a possible buyout. However, if the agreements fail, Fisker may have to file for bankruptcy protection within 30 days.
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Magna, the manufacturing partner, notified its workforce in Graz (Austria) last week that will reduce around 500 positions. With the production of the Fisker Ocean model halted for an undetermined time, Magna found itself compelled to implement substantial workforce reductions.
Fisker spent $904.9 million in cash in operating and investing activities during 2023 and saw its cash balance decrease by 411 million. The company disclosed its cash balance reduced from $736.5 million by the end of 2022 to $325.5 million on December 31, 2023.
Fisker received the delisting notice of its stock from the New York Stock Exchange on March 25 and started trading on the OTC market, where securities trade via a broker-dealer network.
Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
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