China’s Zhejiang Geely Holding Group will not bid for a majority stake in Fisker Automotive, mainly due to the automaker’s obligations to the US government, Reuters reported, citing two confidential sources. Geely, the owner of Volvo, was expected to win the deal for the maker of the Karma, but the Chinese firm doesn’t care for… Read more »
Posts Tagged: Wanxiang Group
Fisker Automotive is in talks with several potential buyers and/or investors, and won’t be able to stay open without a deal, the Wall Street Journal reported.
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.
Chinese auto parts firm Wanxiang is the proud owner of battery maker A123 Systems, having won this week’s bankruptcy auction with a bid of between $250 million and $260 million, according to the Wall Street Journal. Other bidders included Johnson Controls, NEC and Siemens. Wanxiang will not be buying the segment of A123 that provides… Read more »
Fisker was forced to temporarily shut down production of its Karma luxury sedan due to A123’s troubles, and is hoping for a quick resolution.
Wanxiang Group will provide a bridge loan of $75 million or so, and eventually invest up to $450 million in A123, which would give it an ownership stake of about 80% in the company.
The EVs will be sold under the Smith brand, and will combine Wanxiang’s components with Smith’s proprietary drive and battery platforms.