Fisker, an electric vehicle maker, recently made headlines with a recall of 6864 Ocean SUVs due to a Motor Control Unit issue. This recall came just days before the company filed for Chapter 11 bankruptcy protection. The recall was prompted by concerns over a loss of drive power, which can be fixed with an over-the-air update.
In a statement, Fisker mentioned various market and macroeconomic challenges that impacted their operations, leading to the decision to file for bankruptcy. The company is currently working on securing debtor-in-possession financing and selling off assets to restructure its debt.
Fisker, founded by Henrik Fisker in 2016, faced financial struggles earlier this year when its stock price dropped below $1. This led to layoffs, production pauses, and drastic price cuts for the Ocean SUV in an effort to raise funds. The company’s decision to file for bankruptcy only includes certain subsidiaries, with others remaining unaffected for now.
The recall issue with the Ocean SUV was reported to the National Highway Traffic Safety Administration, highlighting a software problem in the MCU and VCU. This software issue could cause the vehicle to unexpectedly enter fail-safe mode, resulting in a loss of drive power. Fisker plans to resolve this issue through an over-the-air update for affected vehicles.
Despite these challenges, Fisker remains committed to maintaining operations, paying employee wages and benefits, and supporting customer programs during the restructuring process. The company’s goal is to emerge from Chapter 11 with a stronger financial footing and a sustainable business model.
Jack Fitzgerald, an auto enthusiast turned journalist, has a deep passion for cars, particularly Formula 1. His journey into auto writing started during college, where he pursued opportunities to explore the automotive world. Fitzgerald’s current mission is to keep his beloved 2010 Volkswagen Golf running smoothly for as long as possible. Through his work, he aims to share insights and stories from the dynamic automotive industry with readers.