Fisker: No more Karmas to be produced until A123 sale is complete

The Delaware Bankruptcy Court approved the sale of A123 to China’s Wanxiang Group on Tuesday, but the deal must be approved by the US Committee on Foreign Investment.

 

Fisker’s production line will remain idle until the sale of battery supplier A123 is finalized, a company spokesman told Reuters. The Delaware Bankruptcy Court approved the sale of A123 to China’s Wanxiang Group for $256.6 million on Tuesday, but the deal must be approved by the US Committee on Foreign Investment.
 
“We plan to wait until Wanxiang takes full control of A123, then we will get in contact with them to negotiate a contract,” said Fisker’s Roger Ormisher. Only once a deal is reached with A123’s new owner will Fisker resume production of the Karma. Until then, “we have a sufficient supply of cars,” said Ormisher. “We are not looking for a new battery supplier.”
 
The Karma production line has been silent since July, when Finnish contractor Valmet began its annual summer break. Fisker has temporarily cut its workforce to around 300, Ormisher said.
 
Last week, Fisker hired investment bank Evercore Partners to search for partners and investors, leading to speculation that a sale of the company was in the offing, but the company has denied any such plans.
 
 
Source: Reuters