Fisker EV Owners Face Additional Costs for Recall Repairs, Here’s What You Need to Know
Fisker, the electric vehicle (EV) startup currently undergoing Chapter 11 bankruptcy proceedings, has delivered some disappointing news to its existing owners. In a recent FAQ posted on its website, the company revealed that owners will be responsible for labor costs to resolve two out of the five outstanding recalls on their Ocean SUVs.
Fortunately, three of the recalls can be resolved at no additional cost to owners through over-the-air software updates. These recalls address issues such as sudden loss of power, incorrectly displayed warning lights, and reduction in regenerative braking. However, the remaining two recalls present a challenge for Fisker owners. Some Ocean SUVs have faulty door handles, and all vehicles require the replacement of an electric water pump, which has been causing power loss. While Fisker will cover the cost of the parts, owners will need to bear the expenses associated with the inspection and repair process at authorized service providers.
The news of additional costs for recall repairs comes shortly after Fisker reached a settlement plan with its major secured lender, the committee of unsecured creditors, contract manufacturer Magna, and other parties involved in the bankruptcy. The settlement plan outlines the division of proceeds from the liquidation of Fisker’s assets and is expected to be approved at an upcoming hearing in early October.
To ease the financial burden on owners, Fisker has agreed to sell almost all of its remaining vehicle inventory to American Lease, a New York-based vehicle leasing company, for a sum of up to $46.25 million. However, the company still needs to liquidate its remaining assets, which are estimated to be worth over $1 billion. These assets primarily consist of manufacturing equipment previously used at Magna’s factory in Austria, and the proceeds from their sale will go towards repaying Fisker’s numerous creditors.
While the additional costs for recall repairs may be disappointing for Fisker owners, it is important to understand the context of the company’s bankruptcy proceedings. Fisker’s financial situation necessitates the implementation of cost-sharing measures to ensure the viability of the recall process. By covering the cost of parts and requiring owners to pay for labor expenses, Fisker aims to strike a balance between fulfilling its obligations and minimizing the financial strain on its existing customers.
It is worth noting that recalls are a common occurrence in the automotive industry, affecting both traditional and electric vehicles. The purpose of recalls is to address potential safety or performance issues and ensure the well-being of vehicle owners and passengers. While it can be frustrating to bear the costs associated with recall repairs, it is crucial to prioritize safety and promptly address any identified concerns.
To facilitate the repair process, Fisker has committed to providing owners with a list of authorized service providers by the end of September 2024. This will enable owners to choose a convenient location for the inspection and repair of their vehicles.
In conclusion, Fisker EV owners are facing the prospect of paying for labor costs to resolve two out of the five outstanding recalls on their Ocean SUVs. While this may be disappointing news, it is essential to understand the context of Fisker’s bankruptcy proceedings and the need to balance obligations with financial constraints. By covering the cost of parts and requiring owners to contribute to labor expenses, Fisker aims to fulfill its recall obligations while minimizing the impact on its customers. As a responsible owner, it is crucial to prioritize safety and promptly address any identified concerns by seeking the necessary repairs from authorized service providers.