Fisker furloughs workers

Its production line idle since July, and its search for a suitor seemingly in limbo, Fisker Automotive put its US workforce of about 200 employees on furlough this week to cut costs.

 

Its production line idle since July, and its search for a suitor seemingly in limbo, Fisker Automotive put its US workforce of about 200 employees on furlough this week to cut costs, Reuters reported.

“This is a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements,” the company said in a statement.

The cash-strapped company has a loan payment to the DOE coming due in late April. The strings attached to the $529 million federal loan that Fisker won in 2009 have emerged as a complication in its efforts to find a new strategic partner. Fisker has had discussions with at least two Chinese firms, Zhejiang Geely (the owner of Volvo), and Dongfeng Motor Group.

Geely, however, dropped out of the running, citing concerns that Fisker’s loan obligations to the US government made the bidding process “too complicated and too risky.” Any merger deal that Fisker makes must be approved by the DOE, which is expected to insist that the company’s Delaware manufacturing plant, and its employees, be put back to work.

 

Image: Fisker
Source: Reuters via Green Car Reports