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WATTGAS 03-26-2014 01:10 AM

Latest News on Wanxiang and FA
 
Hi Everyone,

Just found this news. Mods, sorry if it's posted in another thread.

http://www.delawareonline.com/story/...llion/6835669/

Things appear to continue moving along with "the new Fisker"...

Harleyguy 03-26-2014 07:23 PM

Quote:

Originally Posted by WATTGAS (Post 146489)
Hi Everyone,

Just found this news. Mods, sorry if it's posted in another thread.

http://www.delawareonline.com/story/...llion/6835669/

Things appear to continue moving along with "the new Fisker"...

Yes it's moving forward but at a snails pace right now . The factory is a long way away from building another car in it .

Fabulist 04-15-2014 01:05 PM

4/15: Fisker's Unsecured Creditors to Split $35 Million in Cash and Stock
 
$35 Million For Fisker Automotive's Unsecured Creditors


By DON RUSH

WILMINGTON, Del. (AP) - Fisker Automotive's unsecured creditors will get $35 million in cash and stock under a new bankruptcy settlement.

But the News Journal reports that Gov. Jack Markell's office warned Monday that despite last week's settlement, Delaware won't see much for the $21.5 million in economic development incentives it awarded Fisker in 2010.

Markell spokeswoman Kelly Bachman says in a statement that the state is not expecting a substantial recovery of its investment.

Because of the incentive package, Delaware's claim to Fisker money remains pooled among the unsecured creditors.

California-based Fisker planned to build cars at the former General Motors plant in Newport, but filed for bankruptcy protection in November. Chinese auto parts giant Wanxiang Group paid $149 million to take over Fisker at a February auction.

Link to Original Article

Fabulist 04-15-2014 01:11 PM

More Details on The Deal with Creditors from WSJ
 
Fisker Creditors Reach Deal to Split Cash From Sale of Operations
Hong Kong Billionaire Richard Li Is Expected to Profit From the Agreement


By PEG BRICKLEY

April 14, 2014 1:05 p.m. ET

Hong Kong billionaire Richard Li may have lost in the bidding war for Fisker Automotive Inc., but he is going to make a nice profit on the U.S. taxpayer-backed loan he bought last year.

Court papers say unsecured creditors of the failed hybrid car maker have come to terms with Mr. Li's Hybrid Tech Holdings LLC over how to split the cash Wanxiang Group paid for Fisker's operations, some $120 million.

Estimates are Mr. Li could collect as much as $90 million on his $25 million investment in a loan auctioned off last year by the U.S. Department of Energy, which was anxious to distance itself from the troubled company that it had backed.

Unsecured creditors owed an estimated $80 million to $100 million will also benefit under the deal, said Brown Rudnick LLP's Sunni Beville, lawyer for the official committee representing Fisker suppliers and other unsecured creditors. At the start of the case, they were offered less than $1 million by Hybrid Tech, which attempted to claim Fisker without an auction to test the price it was offering.

As a result of the settlement, unsecured creditors get $20 million to share, cash to add to the stake in a reorganized Fisker that they are being given as part of the takeover by the big Chinese parts maker.

Wanxiang outbid Hybrid Tech at the auction and intends to revive the car-making company. Even after the deal closed, action continued in bankruptcy court where Mr. Li's Hybrid Tech was wrangling with Fisker's suppliers over the cash Wanxiang paid. Hybrid Tech demanded all the sale proceeds due to its position as secured lender.

The accord reached Friday gives unsecured creditors $20 million to share and allots another $8 million to cover Chapter 11 expenses and other priority claims, according to a term sheet filed with the U.S. Bankruptcy Court in Wilmington, Del. Bankruptcy financing is also being paid off.

Everything else goes to Mr. Li's Hybrid Tech, which paid a deeply discounted price for the DOE loan, which had a face value of $168 million at the time it was put up for auction.

As part of the deal, unsecured creditors have agreed to drop questions about the DOE auction, and about the reach of the liens Hybrid Tech is asserting under its loan. Much of the litigation around Fisker's troubles will be settled under the Chapter 11 plan that is built around the deal.

Ms. Beville said Monday the unsecured creditors were pleased to achieve a consensual end to a Chapter 11 proceeding that has been marked by considerable fighting. Mr. Li's Hybrid Tech came to bankruptcy as a secured lender, proposing to take over Fisker in a private sale and give the company's suppliers a fraction of a penny recovery on their debts.

Unsecured creditors turned to Wanxiang, which had acquired the former A123 Systems, which made batteries for the Fisker vehicles, out of bankruptcy.

Wanxiang made an offer, and creditors persuaded Judge Kevin Gross to cap Hybrid Tech's credit-bidding rights at $25 million, the amount he had paid for the loan. Hybrid Tech had claimed it was entitled to bid the full $168 million of the DOE loan, but unsecured creditors challenged its rights on the grounds that some of Fisker's assets were beyond the reach of the loan.

Write to Peg Brickley at [email protected]

Link to Article. (Emphasis added)

SoCalGuy 04-15-2014 01:36 PM

Still unclear what this means for the warranties... and rumor is much is still unsettled in the new FA.

Fabulist 04-15-2014 01:52 PM

Quote:

Originally Posted by SoCalGuy (Post 150113)
Still unclear what this means for the warranties... and rumor is much is still unsettled in the new FA.

IMHO, this is somewhat good news, mainly because it is clearing away all the claims and potential lawsuits arising out of the BK process and getting the major creditors on board as a step on the road to restarting the company with a relatively clean slate. while preserving the commercial relationships with the suppliers to increase the likelihood of restarting the supply chain.

You are correct; it does not address the warranty question directly, but Wanxiang needs to clear away the horde of alligators before they turn their attention to dredging and cleaning up the swamp. In that sense, it is progress. It also further demonstrates their commitment to turn Fisker back into an actual car company, rather than trying to break it up and sell of the assets for maximum profit, in which case, there is no point in paying the creditors anything.

SoCalGuy 04-15-2014 02:57 PM

My best guess is that the earliest we will see new Karmas roll off the line will be Q2 2015. Hopefully Wax will provide some clarity on owner support by the end of summer.

Nin ja 04-15-2014 05:19 PM

It would be foolish of Wanxiang to abandon the previous owners of thier new namesake motor company - if anything, they should folow mclearen lead.
...
To soften the blow, the automaker also announced that owners of the roughly 3,500 McLaren 12C models will be offered a free Technology Upgrade for their cars that includes various advances that resulted from development of the P1 and 650S. Key tweaks include revised Active Aero software for the rear airbrake that now includes a Drag Reduction System and enhanced functionality of the car's Android-based infotainment system as well as external window control capability for later models. McLaren also will offer 12C owners special pricing on two new options that were introduced on the 650S - a backup camera and SiriusXM Satellite radio.

tannerc 04-15-2014 05:44 PM

Lu Guanqiu, 69, the founder of Hangzhou-based Wanxiang Group, a leading Chinese auto parts maker, seems to have moved a step closer towards his dream of building complete cars, after his enterprise bought American plug-in hybrid sports carmaker Fisker Automotive earlier this year.

The electric automobiles Wanxiang has built have sparked quality disputes in the Chinese market over the past few years, however, and people have started questioning whether or not Wanxiang can really become "China's Tesla" as previous media reports have implied, the Guangzhou-based Southern Weekly reports.

The Wanxiang Group, which started its business with farming machine assembly and repairing services 45 years ago, was described as "China's Tesla" soon after the US bankruptcy court approved its application to buy Fisker's assets on Feb. 18.

According to a report from China-based Guotai Junan Securities on the deal, owning one of the world's advanced makers of batteries for electric automobiles referred to as the A123 System and Fisker, Wanxiang Qianchao, the subsidiary of Wanxiang Group that produces and markets automobile parts, could possibly become another Tesla along with Fisker and A123.

After it was reported on Feb. 17 that Wanxiang was planning to buy Fisker, Wanxiang Qianchao's stocks rose for three consecutive trading days.

Wanxiang Qianchao later declared that it wouldn't launch any investment in the electric car manufacturing sector, unless the business group's electric vehicles production branch, Wanxiang EV, began generating stable profits.

While Fisker is focused on the manufacture of an extended range of electric vehicles, as opposed to Wanxiang's battery-powered electric vehicles, the purchase of Fisker will not affect Wanxiang EV's development, the company stated.

A source familiar with the Fisker deal told the Southern Weekly that Beijing Automotive Group was in fact the company that purchased Fisker, terming Wanxiang a "go-between."

Wanxiang's next step will be to transfer Fisker's assets to Beijing Automotive, the source revealed.

Lu told the Chinese-language Zhejiang Daily after the purchase deal that Fisker would manufacture cars on the mainland. "As to when Wanxiang will start producing its own automobiles, it's still hard to say," he said.

http://www.wantchinatimes.com/news-s...00029&cid=1206

smoothoperator 04-17-2014 03:06 PM

http://www.delawareonline.com/story/...g-del/7829917/



The interim president of the new Fisker Automotive said the chances are “50-50” that it will use the old General Motors plant to build automobiles.
Roger Brown became the temporary head of the plug-in hybrid electric company after Wanxiang America Inc. purchased Fisker’s assets in a bankruptcy sale on March 24. One of those assets is the plant near Newport, which the old Fisker had planned to use to build cars with state and federal incentives.
“We inherited this situation, and because the facility is one of the assets we purchased, it has ... good bones, it has a paint shop, and you know, it definitely makes economic sense to consider that facility,” Brown said in a telephone interview on Thursday.
Other states have made assertive advances about Fisker moving its manufacturing there, Brown said, declining to name names, nor discussing whether Delaware has offered any new incentives to stay and build here.
Fisker, attracted to Delaware by Gov. Jack Markell in the depths of the recession, received $20 million in economic incentives from the state to build its second-generation car, the Atlantic, at the plant on Boxwood Road near Newport. As the bankruptcy case works its way toward a conclusion, it is becoming increasingly clear the state will get little of that money back.
Brown said the first thing on the new Fisker’s agenda is to relaunch the Karma by August of 2015; the Surf, a Karma with a different body, by March 2016; and have the lower-priced Atlantic ready to go toward the end of 2017.
The company is “doing that analysis as we speak” about where to make all three vehicles, he said. Delaware, he said, “has not been ruled out or ruled in. What we’ll do is put the economic probables on paper.”
“Delaware’s got a lead because the real estate’s already paid for,” Brown said.
Fisker will consider whether to use a third-party manufacturer, including Valmet in Finland, but it will not use Bob Lutz’s VL plant in Michigan, Brown said. The company will honor Fisker’s original commitment to supply Lutz with Fisker bodies to use for his Corvette-engine Destino cars, he said.
In a bankruptcy court filing this winter, Wanxiang said it might use the Delaware facility if it moved to mass production of the Atlantic. Analysts quickly criticized that statement as too optimistic, saying the Delaware plant was too old and too big for a startup luxury carmaker. Wanxiang, China’s largest auto parts manufacturer, has never built a car before.
Conventional wisdom is not the same as doing a detailed financial analysis of the Delaware plant, Brown said. “Our world is, we dwell in numbers, facts and execution, period. Random chitter chatter is not something we’re very good at.”
It would cost $500 million to build a manufacturing facility from scratch, and of that, a paint booth would be $275-300 million, he said. Even though the Delaware plant is old, he noted that so is the former Toyota/General Motors joint venture plant that Tesla, another electric car startup, is using in California. Tesla is not using that entire facility, and Fisker would not use the entire facility in Delaware, he said.
The Delaware facility also has a robust supply of power, Brown said. The new Fisker will weigh whether Delaware is a good tax environment and whether employee resources are readily available as it makes its decision, but “those are things we’re starting to study.”
“If they provide incentives, obviously that would go into the equation; if they don’t, obviously that would go into the equation also,” Brown said of Delaware.
Other factors that will be considered are transportation infrastructure, logistics, cost of power, and a readily available supply of skilled labor. Auto workers from the General Motors days would need to be retrained to work with the high technology that comes with Fisker, he said.
“This car has to be a technology wonder, and that’s what we’re trying to create,” Brown said.
Brown said that the new company has budgeted $5 million a year to keep the Delaware plant viable, including the boilers and electricity, maintenance and security. The company does not plan to let it sit around very long, he said. If Wanxiang does not build cars there, its real estate arm would come into play, looking for other uses, such as an industrial park, manufacturing of some other sort, or perhaps a distribution center, he said.
The new Fisker now has two or three people onsite, “a constant team of people making sure X and Y stay running,” he said.
Brown said Fisker, based in Costa Mesa, Calif., has about 30 employees, largely from the old Fisker workforce, including hybrid technology engineers. “We’re putting a team back together,” Brown said. “This is really a startup, but it’s a startup that has a little steam ahead of it.”
Brown’s Tennessee-based company, Summit Strategic Investments LLC, owns Segway, the motorized scooter company, and has done business with Wanxiang on and off since 2004.
“Everything will be weighed. We have to figure out, what’s the best for Fisker Automotive,” he said.
The old company was Fisker Automotive, Inc.; the post-bankruptcy company primarily owned by Wanxiang is Fisker Automotive and Technology Group LLC, he said.
Contact Aaron Nathans at 324-2786 or [email protected].


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