China’s Wanxiang Group has made a late bid for the assets of US-based bankrupt luxury hybrid sports car producer Fisker.
The move follows the Chinese company’s acquisition of US battery producer A123 Systems, a key supplier to Fisker.
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A majority of Fisker creditors asked the US Bankruptcy Court in Wilmington, Delaware, to scrap Fisker’s planned sale to a company affiliated with Hong Kong businessman Richard Li and instead hold an open auction at which Wanxiang’s US arm plans to bid, according to Reuters.
Wanxiang planned to make an initial bid of US$24.7m and pledged to assume some liabilities of Fisker, according to court documents filed before the deadline to object to Fisker’s existing plan.
A hearing is scheduled for later today (Friday January 3) in the US to consider whether Fisker should adopt creditor proposals or proceed with the sale to the affiliate of Li, according to Reuters. However, severe winter weather in the US has led to the hearing being postponed until next week (January 10).
Fisker, maker of the plug-in Karma hybrid, filed for bankruptcy in November and has large outstanding debts on loans for new energy tech secured from the US Department of Energy.
In the latest petition, Wanxiang plans to restart Fisker production as early as April and eventually move manufacturing from Finland to Michigan, according to Wanxiang’s presentation to the court.
The Chinese company estimated it would sell more than 1,000 Karma hybrids in the first 18 months in the US and 500 in Europe. Wanxiang also said in its presentation it could lower production costs.
