The automobile industry has faced financial distress in 2024 leading to Chapter 11 bankruptcy filings.
Electric vehicle startup Fisker Group on June 17 filed for Chapter 11 bankruptcy, citing various market and macroeconomic headwinds, and shut down all operations.
Fisker had begun deliveries of its Ocean battery-electric crossover SUV in 2023 to compete with Tesla, but by February 2024 the vehicle began having various problems. Some of the problems included suddenly losing power, loss of brake power, defective key fobs, and front hoods opening at high speeds. The vehicle also had difficulties with gear shifting.
Fisker warned that it may not have enough money to survive the next 12 months in its fourth-quarter earnings report on Feb. 29. Other problems arose as in June, former Fisker employees revealed the company had no plan to stockpile spare parts for Ocean vehicle repairs.
The spare parts problem led technicians and employees to dismantle perfectly good cars to provide spare parts.
www.thestreet.com/automotive/distressed-luxury-sportscar-maker-files-chapter-11-bankruptcy
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