Wanxiang Wins Fisker Automotive With Huge Bid Over Hybrid Tech

FEB 15 2014 BY JAY COLE 12

Re-Auction Of Fisker Nets $90+ Million More Dollars and the Rebirth Of The Karma - Possible Atlantic Too

Re-Auction Of Fisker Nets $90+ Million More Dollars and the Rebirth Of The Karma – Possible Atlantic Too

In January, a Delaware bankruptcy judge threw out an earlier bankruptcy deal that he felt had been rushed by Hybrid Technologies LLC and Fisker to quickly complete a sale to get ahead of other potential bidders  That agreement would have saw Hybrid take control of the EV maker for a few million dollars plus the $25 million they paid for the DoE’s ATVML loan.

Karma-Builder Valmet Automotive Has To Be Pleased With Wanxiang's Winning Bid

Karma-Builder Valmet Automotive Has To Be Pleased With Wanxiang’s Winning Bid

This week, we found out the judge made the right call.

After 2.5 days, and 19 rounds of bidding, Chinese part giant Wanxiang outbid Hybrid Tech LLC for the right to once again seek approval (which it for sure will get next Tuesday, Feb 18th) to control Fisker.

Final price?  $149.2 million dollars.

Hybrid Tech put a value on their original bid of about $77 million – although the bulk of that was assessing the government-owned debt on Fisker that they had just purchased for $25 million at $75 million, with just $500,000 going to unsecured creditors.

“This is a great result for all Fisker stakeholders, including Hybrid Tech Holdings LLC and Fisker’s general unsecured creditors,” Marc Beilinson, Fisker’s chief restructuring officer said of the new result.

So About That Extended Range Fisker Atlantic...

So About That Extended Range Fisker Atlantic…

As the unsecured creditors did much, much better in this new deal ($8 million), their representation – Bill Bladiga was also pretty happy with auction, and took the opportunity to twist the knife a little on Hybrid and Fisker:

“We are honestly delighted.  This is six times what Fisker said it was worth when it started the bankruptcy case three months ago, and the committee was the only one fighting to have a transparent and open process, notwithstanding the fact that we had opposition every step along the way from Fisker and Hybrid.”

Hyrbid Tech reportedly offered as much as $55 million plus their $25 million dollar purchased ATVML note.

“After actively bidding in the auction, Hybrid has elected to retain its rights as a lender rather than continue to bid for ownership of Fisker,” the company said in a statement.

What does this means as to the future of Fisker, and the Karma and Atlantic?

Wanxiang, given that it already owns bankrupt US battery supplier A123, has clearly stated their intentions to restart Karma production and possibly continue with plans to operate a $20 million, ex-GM facility in Delaware to build the 2nd generation Atlantic or another product.

Source: Fisker Automotive Holdings Inc.,  Case: 13-bk-13087, U.S. Bankruptcy Court, District of Delaware (Wilmington).  USA Today, and company statements.

Categories: Fisker / Karma

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12 Comments on "Wanxiang Wins Fisker Automotive With Huge Bid Over Hybrid Tech"

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Big Solar

Good News!!

Dan

Great news. Hopefully things get turned around.

Dan Frederiksen

If it wasn’t a given that this will be a cluster F it would be interesting to see how they restart production. This will go much like the restart of Saab. About as successful as Coda.

2.4ton of junk engineering cannot be saved without a total reengineering and short of a genius in charge that will cost quite a bit. They could spend hundreds of millions yet again. And even then, you end up with a less than perfect car. A somewhat vulgar and ridiculous car. It’s the size of a Tesla Model S or S class Mercedes but has the cabin space of a 911.

If they consult me they have a chance but really this company is not worth 150m$. It’s not worth 10 and it’s not worth 1.

Mint
The Karma was ridiculous by design. Its desirability is directly linked to its exaggerated proportions – giant wheels, low height, big front end, sleek shape, etc. When you’re a new car maker and need to fetch $100k+ for your first model in order to survive until tomorrow, you can’t make a S-Class clone and expect to get any attention. The Atlantic was their more practical model. In terms of engineering, they got the hardest part right: handling and driving feel. Everyone lauded how amazing it drove given its size/weight, and people still rank it above the Model S in that aspect. They screwed up the little stuff like panel gaps, engine sound, and touchscreen. They also should have gotten more performance out of the 400 hp motor. But these are fixable, especially with the Atlantic. Put a smaller range extender in there, take advantage of the 10 second 20C discharge ability of A123 cells, and make the dream PHEV that no other automaker wants to bother with. Wanxiang got the design to a car with a pretty interior/exterior, real world data about A123 which they also own, and factory space in Delaware (which probably came with tax breaks). Given their… Read more »
Dan Frederiksen

Of course it’s fixable. By scrapping it all and starting anew.
The 2.4ton is the anchor that weighs it down. To fix that you have to change quite a bit. I’ts easily done if you’re not a complete moron but everyone is.
A car like that could weigh less than half. Easily.

It was also a huge mistake to use UQM motors. They are clueless with short sighted greedy prices and because the car was so fat they needed a lot of motor. Just the UQM parts cost is probably more than what the entire car could be made for if done right.
Yes it can be fixed/saved but there is nothing of worth to start with other than maybe the design but hardly 150m$ worth.
And while it could theoretically be saved by someone actually smart like me, it is more than a given that these guys will fail. You have to be a special kind of stupid to pay 150m$ for Fisker Automotive. You’d have to be Coda stupid. Or Better place stupid.
Or stupid enough not to consult with me.

Mint

Yeesh. I don’t think I’ve ever seen a cockier post here. You’re smarter than an entire $10B/yr company? Please.

You certainly don’t look very smart from this post. Weight was the least of Fisker’s problems. Swapping out the motor is a piece of cake, especially for Wanxiang. Their EV division was founded in 2002, and they achieved a number of EV firsts in China.

Nix

Dan saves his brain power for use with his vast knowledge about aliens.

Dan, watch out, there is a Red alien behind you! Duck!

Nix

I believe Wanxiang is now the first BEV car company that builds both the batteries and has plans to build their own gliders, and potentially even a number of the parts. It will be interesting to see if that gives them an advantage in the market.

When Fisker was planning the Atlantic, they signed engine contracts with BMW. It will be interesting to see if Fisker and BMW reaffirms this contract after the bankruptcy, with Wanxiang saying they are planning to build the Atlantic.

evnow

Not sure what you mean by “BEV car company” – but Nissan builds their own batteries & cars.

Nix

evnow — The last I knew, Nissan was building their batteries jointly with NEC. Has Nissan ended that relationship, and brought production entirely in-house? If so, I must have missed that news.

Steve

NEVS – the owners of Saab – have their own battery tech and plants in China. Gliders and ICE 9-3s are being produced in Sweden.

Nix

Interesting. I haven’t been following Saab since they pulled out of the US market. Thanks for the info.