Fisker Recalls Ocean EV Days before Company Files for Bankruptcy
Fisker recently recalled 6864 Ocean SUVs due to a potential loss of drive power in the Motor Control Unit (MCU). This recall occurred just days before the company filed for Chapter 11 bankruptcy protection. The issue with the MCU can be addressed with an over-the-air update.
The bankruptcy filing includes plans to work with stakeholders on debtor-in-possession financing and the sale of Fisker’s assets. This move makes Fisker the second electric vehicle maker to file for Chapter 11 in the last year, following Lordstown Motors.
The company attributed its decision to market and macroeconomic challenges faced by the electric vehicle industry, leading to an assessment that a Chapter 11 asset sale is the best path forward. Fisker’s manufacturing pause, which was previously announced, will continue, impacting production and operations.
Fisker, led by Henrik Fisker, was established in 2016 in Manhattan Beach, California. After an IPO in 2020, the company experienced financial difficulties, leading to layoffs, production pauses, and significant price reductions on the Ocean SUV. The bankruptcy filing does not currently include Fisker Inc. or its U.S. and international subsidiaries.
The recall of all 2023 Ocean SUVs was reported to the NHTSA in early June due to a software issue in the MCU and VCU, which could cause the vehicle to enter a fail-safe mode, resulting in a loss of drive power. The company plans to address this issue with an over-the-air update to both the MCU and VCU.
