Fisker, the electric car company, is facing some bumps in the road. Their Austrian branch filed for reorganization, which is similar to filing for bankruptcy protection in the US. This comes after Magna Steyr, the company that builds Fisker’s Ocean SUV, paused production earlier this week.
The reorganization will allow Fisker Austria to keep operating under court protection. This means they can keep paying employees and selling existing cars. If they don’t find more money soon, things could get worse. Fisker is burning through cash fast, and they might run out by the end of May!
Here’s the good news: Fisker says their other locations are doing okay, and this filing only affects Austria. They also plan to keep delivering cars to customers, providing service, and updating software as they work through this situation.
Magna Steyr, the factory building the Ocean in Austria, has paused production. This comes after they built about 11,000 Oceans since November 2022.
Fisker’s plan was to keep costs low by outsourcing car building to factories like Magna Steyr. This would allow them to focus on design and customer experience. Unfortunately, for Fisker owners, things haven’t been going smoothly lately.
Magna Steyr isn’t just building Fisker cars. They also work on BMWs, Jaguars, Toyotas, and Mercedes-Benz. With some of these car models ending production this year, Magna Steyr is facing hard times and has laid off 500 workers. The next few years look challenging for the factory.