Reports suggest that Chinese carmaker Dongfeng has decided not to pursue a bid for a majority stake in Fisker Automotive.
Dongfeng was reportedly put off by the electric vehicle company’s obligations to the US government, including restoring jobs and capacity at the company’s Delaware plant, according to sources. The conditions also make it difficult for foreign companies to move production overseas.
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“In the end, what mattered to Dongfeng was being able to produce Fisker cars in China,” said one of the sources, according to Reuters. “It became apparent over time that could not have been done with this deal.”
Fisker has not produced a car since July, and is looking for financial support to help build its second model, the Atlantic plug-in hybrid. The company was hoping to finalise a deal with a strategic investor by the middle of March. Geely was said to be a favourite for the deal, but pulled out, also apparently put off by Fisker’s obligations to the US government.
