Just days after telling owners they would have to pay for labor costs for recall repairs, bankrupt EV startup Fisker reversed course: The company edited a FAQ page on its website to say, “Fisker will provide any necessary parts (including labor) at no charge.”
Fisker initially delivered the bad news to thousands of Ocean SUV owners in a FAQ published Sunday night, saying that three of the five recalls (sudden power loss, false warning lights and reduced regenerative braking) could be fixed with a free over-the-air software update.
But two other recalls require parts and labor costs: some Oceans have defective door handles; and all SUVs need replacement of electric water pumps, which caused some vehicles to lose power. Fisker initially told owners it would cover the cost of parts but that they would have to cover the cost of inspection and repairs at an authorized service provider (the company said it would send owners a list of those providers by “the end of September 2024”).
The change of course comes as electric vehicle startup Fisker prepares to enter the fourth month of its Chapter 11 bankruptcy proceedings. Fisker recently finalized a settlement with its largest secured lenders, the unsecured creditors committee, contract manufacturer Magna, and other parties involved in the bankruptcy. After months of sometimes heated back-and-forth, the parties agreed on how to split the proceeds from the liquidation of Fisker's assets. The judge in the case set a hearing for early October at which the settlement could be approved.
The company has already signed an agreement to sell nearly its entire remaining vehicle inventory to New York-based auto leasing company American Lease for up to $46.25 million. Now, to pay off its many creditors, the company must sell off its remaining assets, mostly used manufacturing equipment at Magna's Austrian factories, valued at more than $1 billion.
Update: This story was originally published on Sept. 16 and updated on Sept. 18 to reflect Fisker's change of policy.