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http://www.ocregister.com/articles/fisker-413806-karma-company.html

Fisker Automotive in Anaheim has hired a turnaround consulting firm to run day-to-day operations while the luxury hybrid-electric carmaker seeks partnerships that could help stabilize operations.
Fisker hired Chicago-based Huron Consulting Group this month, the company confirmed Tuesday. The automaker brought inHuron's managing director, Hugh Sawyer, to serve as Fisker's chief administrative officer and to cut costs. At the same time, Chief Executive Tony Posawatz will focus on raising more funds and negotiating partnerships.

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"We've had a lot of interest across three different continents," Fisker spokesman Roger Ormisher said.
Fisker spent $1.2 billion in private funding – including $100 million raised in September – as well as $193 million borrowed from the U.S. Department of Energy to build its Karma luxury cars. The Karma, which sells for $100,000, is made in Finland. The company was on its way to production of a second, lower-cost hybrid vehicle when a series of setbacks derailed the efforts.
In May 2011, the Energy Department cut off an additional $336 million in funding after Fisker failed to meet production milestones for its second vehicle, the Atlantic, which the company planned to build in the United States.
In 2012, Consumer Reports bought a Karma that broke down during testing. A few weeks later Fisker announced a long-term replacement program for defective batteries produced by its sole supplier, A123 Systems. A123 declared bankruptcy in October, forcingFisker to halt production of the Karma and save batteries for replacements. Fisker also had two recalls and lost 338 new vehicles at a shipping facility in New Jersey due to flooding during Superstorm Sandy.
Fisker sued its insurance provider, XL Insurance America, after the company denied its insuranceclaim. The carmaker is negotiating with Wanxiang Group, the new Chinese owners of A123 Systems, for a new battery supply.
Fisker sold more than 1,500 Karmas as of October.
 

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I was wondering why the front of Fisker of OC was pictured, then realized it was an OCRegister link. Thanks for the info!
 

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EX:Shadow/Canyon #324
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Smells like the beginning of end to me.. :(
I don't agree. Huron was reported elsewhere as having been hired to manage cash while Fisker seeks a strategic partner, not to run day-to-day operations. The OC Register implication that Huron is running Fisker while CEO Posawatz in seeking partners is bogus.
 

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EX:Shadow/Canyon #324
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Why is it worse?
I don't think it is worse. If Fisker gets a $350M investment, that is enough capital to re-enter the market with the Karma and complete development of the Atlantic and get it into production. That is a win regardless of who is making the investment.

As far as moving production to China, another possibility is that the empty factory in Delaware that is owned Fisker could provide a Chinese/Korean/European company the opportunity to manufacture their existing brand(s) in the US.

I have no idea if the Bloomberg article is true, or what other bids there might be. But any large investment in Fisker by a strategic partner is a win for the owners, while it could represent significant dilution to the existing investors. Still better than BK.
 

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Why is it worse?
From the Bloomberg article:
Fisker Automotive Inc., the U.S. plug-in hybrid carmaker seeking a buyer, is weighing several bids, including a $350 million offer from Dongfeng Motor Corp. that would give the Chinese carmaker majority control, said people with knowledge of the matter.

Dongfeng, based in Wuhan, China, would gain 85 percent of Fisker under the terms of its bid, said one of the people, who asked not to be named because the process is private. Fisker had sought bids by Feb. 6, according to that person.
Let's hope they don't have to settle for Dongfeng or that this report is wrong. $350M for 85% of the company would be aweful. Fisker got something like 1.2B in private equity plus another $193M from the DOE loan. This deal would put Fisker's current total value at only $412M, about half of which is owed to the DOE.

Admittedly this isn't my field of expertise. Am I missing something?
 

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EX:Shadow/Canyon #324
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Let's hope they don't have to settle for Dongfeng or that this report is wrong. $350M for 85% of the company would be aweful. Fisker got something like 1.2B in private equity plus another $193M from the DOE loan. This deal would put Fisker's current total value at only $412M, about half of which is owed to the DOE.

Admittedly this isn't my field of expertise. Am I missing something?
With multiple suitors, it is unlikely that the valuation will be that low. The good news, if the Bloomberg article is to be believed, is that at least one car company is willing to put up enough capital to restart Karma production and complete development of the Atlantic and bring it to production. That would be big positive for Karma owners, regardless of how it impacts existing Fisker investors.
 

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With multiple suitors, it is unlikely that the valuation will be that low. The good news, if the Bloomberg article is to be believed, is that at least one car company is willing to put up enough capital to restart Karma production and complete development of the Atlantic and bring it to production. That would be big positive for Karma owners, regardless of how it impacts existing Fisker investors.
Frankly, I hope they find their white knight but I'd actually prefer that they don't ramp up new Karma production and just focus on the next model. It's selfish reasons mainly...I'd like my Karma to remain just that little bit more rare and exclusive.
 

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EX:Shadow/Canyon #324
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Frankly, I hope they find their white knight but I'd actually prefer that they don't ramp up new Karma production and just focus on the next model. It's selfish reasons mainly...I'd like my Karma to remain just that little bit more rare and exclusive.
The problem with taking that path is that the dealers will desert them if they don't have anything to sell for 2 years. Not a good idea.
 
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