US: Fisker auction won by China’s Wanxiang Group image

Fisker, which is was a start-up that showed almost the same promise as Tesla did back in its first days, is now a defunct carmaker, with only one model produced – the Karma plug-in hybrid sports car.

China’s largest auto parts maker, Wanxiang Group has now won a successful bid to acquire the assets of the US maker, according to Fisker. The Chinese bid is valued at around $149.2 million, with $126.2 million in cash, $8 million of assumed liabilities, and a contribution of common equity in an affiliate designated by Wanxiang.

According to a couple of people that talked to Reuters, the Wanxiang Group outbid an affiliate company of Richard Li, a Hong Kong billionaire and initial Fisker investor. The US Bankruptcy Court in Wilmington, Delaware, will still need to approve the sale, due to be presented before a judge tomorrow.

According to Fisker, there were 19 rounds of bidding and the sources said Li’s initial offer was at around $55 million, with the auction lasting last week from Wednesday to Friday.

The Wanxiang Group has been keen on building a presence in the US, as last year the government allowed it to also buy the bankrupt assets of A123 Systems Inc, which made Fisker’s Karma batteries.

Via Reuters