Fisker And XL Insurance Make A Deal On Those 338 Drowned Karmas

4 years ago by Inside EVs Staff 3

Fisker Gets Some Cash From Its Insurance Provider In A Out-Of-Court Settlement Over 338 Drowned Karmas

Fisker Gets Some Cash From Its Insurance Provider In A Out-Of-Court Settlement Over 338 Drowned Karmas

About four months ago, Superstorm Sandy flooded a New Jersey port and destroyed 338 Karmas.

This Karma Damaged During Superstorm Sandy Probably Can't Be Salvaged (photo via Jalopnik)

This Karma Damaged During Superstorm Sandy Probably Can’t Be Salvaged (photo via Jalopnik)

Fisker, thinking they had insurance coverage on these cars put in a claim to their provider, XL Insurance, for the value of the Karmas, approximately $33 million dollars.

On the other hand, XL Insurance felt that these cars were not actually in transit (which Fisker’s coverage provided insurance for), but rather that Fisker was using the port as a holding pen for unsold cars, and denied the claim.

Unhappy with this outcome, Fisker lawyered up and XL Insurance hunkered down to defend.

Today, according to a stipulation of discontinuance, Fisker and XL to to end the lawsuit, with the two companies agreed to a private settlement.

 

Historical Photo From When Fisker Karmas Were Actually Being Built

Historical Photo From When Fisker Karmas Were Actually Being Built

While a partial payment was not the optimal outcome for Fisker, the start-up really needs all the cash it can get while it waits to re-start Karma production (that has been idled for 7+ months), or for 1 of 3 Chinese companies (Geely bid, Dongfeng bid, Wanxiang offer) to take a leap of faith and buy out the luxury extended range electric vehicle maker.

According to Roger Ormisher, Fisker’s spokesperson, “Fisker Automotive and XL Insurance America Inc. can confirm that they were able to successfully reach an out-of-court agreement that resolves their coverage dispute with respect to the loss of vehicles at Port Newark during Hurricane Sandy.  The terms of the settlement are confidential.”

Bloomberg

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3 responses to "Fisker And XL Insurance Make A Deal On Those 338 Drowned Karmas"

  1. James says:

    “BLA BLAA INSURANCE, SO PERSON COME HELP!”

    lol 🙂

    You know, where’s Flo when you need her, anyway?!

    OK, so Karma may need a gecko or some guy with
    a deep voice next time to step up and cover acts
    of nature and acts of sitting cars waiting for new
    electric fan systems and good A123s…

    Perhaps if Wang Chung, Dogfetch or Chun King comes
    to the rescue, they can pump out some good ole Chinese-
    quality Volt knockoffs or something – but seriously, I
    think we’re about ready to stick a fork in Fisker…..
    Or – is that a pair of scissors?*

    * Fiskers – bad joke, I know …. awww come onnnn!

  2. Future Leaf Driver says:

    Yup, it’s done, done like dinner!

  3. cody says:

    You know.. as much as I disrespect the Fisker Karma… I didn’t respect the Tesla roadster as well. Look where Tesla is now! The big downer is it looks like this company won’t be employing any americans any time soon. I am saddened that the Deleware plant isn’t going to get up and running… or so it seems. I’m confused on one thing: I thought Fisker was an American company? Can someone “esplane it 2 me!”? Maybe I should just Google it. Then again… someone here probably has a better inside track on the connections between Henrick Fisker.. his car company and the DOE loans.