Breaking News: Fisker Owners Facing Unexpected Costs for Recalls - What You Need to Know
As the EV startup Fisker navigates through Chapter 11 bankruptcy, existing owners are in for a surprise. Fisker announced that owners will have to cover labor costs to resolve two out of five outstanding recalls on their Ocean SUVs.
According to Fisker, three of the recalls can be fixed with over-the-air software updates at no extra cost. However, the remaining two recalls involving faulty door handles and an electric water pump replacement will require owners to pay for the inspection and repair process at authorized service providers.
This news comes after Fisker finalized a settlement plan with key parties involved in the bankruptcy, including its largest secured lender and contract manufacturer Magna. The plan outlines how the proceeds from liquidating Fisker's assets will be distributed, pending court approval in early October.
In a move to generate funds, Fisker has already sold most of its vehicle inventory to American Lease for up to $46.25 million. The company now faces the task of liquidating its remaining assets, valued at over $1 billion, to repay its creditors.
Analysis:
Existing Fisker owners should be prepared for unexpected costs associated with recall repairs. It is essential for them to stay informed about the settlement plan and potential implications on the company's assets. This situation highlights the importance of financial diligence and awareness of ongoing developments in the EV market.