Fisker Sends Home US Workers for a Week to Preserve Cash image

This week Fisker chose to furlough its US workers, in an attempt to preserve cash, after Chinese company Dongfeng abruptly dropped its bid.

Fisker spokesman Roger Ormisher confirmed that Fisker has furloughed its 200 employees on Friday, March 22nd and that they are scheduled to restart work on Monday, April 1st. It’s been six month since Fisker has not manufactured a single Karma hybrids and months since it is struggling to find a partner to finance and help with the production of the Atlantic, its second plug-in hybrid. Fisker had two possible strategic Chinese partners, Zhejiang Geely Holding Group and Dongfeng Motor Group, but both dropped their bids due to the US government’s tough conditions.

A company statement called the furloughs “a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements and is not expected to materially impair Fisker’s operations or the scope or timing of Fisker’s future business plans.”

A couple of weeks ago Henrik Fisker, the former BMW designer and founder of the company, resigned from the company due to “several major disagreements” with Fisker’s management about the automaker’s business strategy.