It’s always darkest, the old cliche tells us, just before dawn. By Fisker’s clock, then, we suppose it’s just about sun-up; after surviving a disastrous 2012, Fisker has good news on the horizon. Its battery supplier, A123 Systems, has a new owner in the form of Chinese auto parts giant Wanxiang, which means that Fisker will soon be able to resume production of its Karma sedan.
It’s been looking for an alliance within the auto industry, and it now appears that two Chinese firms are competing for majority ownership of the struggling electric automaker. One is Dongfeng Motor Group, which reportedly has plenty of cash but is saddled with a heavily-layered management structure and strong ties to the Chinese government. The second bidder is Zhejiang Geely Holding Group, which purchased Volvo from Ford in 2010.
As Reuters explains, Geely is the favorite to win the Fisker bid, as it already has experience with investing in foreign automakers. It also has a more relaxed management structure, meaning that it can move more quickly in the bidding process.
While Fisker actively sought bids from companies around the globe, only Dongfeng and Geely emerged as serious bidders. The reasons why are complicated, but the short answer is that the Chinese government wants more electric cars, and investing in a foreign automaker using a range-extending electric car design is a way to get there.
Aside from more cash to fund operations, it’s not clear what this means for Fisker, which currently tasks production of its Karma sedan to Valmet in Finland. It’s possible that Karma production could be moved to China, which raises another question: will Fisker proceed with building its mass-market Atlantic sedan, and will it still open a production line in Delaware?
We suppose these questions will be answered in the coming months, but for the first time in a long time, Fisker has reason to be optimistic about its future.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
