[doug]

US 'green-car' maker Fisker seeks salvation in China -sources | Reuters

China is probably their best bet. The majority of the major drivetrain components already come from China or (soon to be) Chinese owned companies. And while I don't think Fisker has any technology that would be of value to the American, European, or Japanese majors, the system integration experience could be of value to a Chinese company.

Any ideas how long Fisker can last in the meantime?

 

[Antonin]

Friend of mine who did lot of business with Chinese companies told me that you should not have high expectations of finding a solid business partner. Basically they think that if they screw you (i.e. steal your intellectual property or do not deliver what was promised) it is your fault, since you let them do it. I think Fisker is now grasping at the straws here... it might be much cheaper for any Chinese company to buy few cars and reverse-engineer them than to invest in Fisker. Just my two cents...

 

[pythagoras]

Isn't that true for all hard business types? All the chinese have been missing is a culture of quality in design they still need to learn that from American companies.

All the industrial and construction growth has been in Asia the past few years (look at list of new 2012 skyscrapers). Nobody in the West has ambition to build new industrial companies anymore. It's easier to just play with paper money and financial derivatives. Sad that Fisker may become another demonstration of this and end up in an asian marriage but that's the reality of our hollow economy.

 

[Dutch]

Isn't that true for all hard business types? All the chinese have been missing is a culture of quality in design they still need to learn that from American companies.

All the industrial and construction growth has been in Asia the past few years (look at list of new 2012 skyscrapers). Nobody in the West has ambition to build new industrial companies anymore. It's easier to just play with paper money and financial derivatives. Sad that Fisker may become another demonstration of this and end up in an asian marriage but that's the reality of our hollow economy.

All the Chinese can do, is buy, copy and steal things. Name one recent technical or technological invention from China? One original design? One artistic novelty? I can't thing of any. One billion plus people and nothing original to show for it. Copying, cheap labor, price dumping and protectionism is the only thing that moves that economy. But well, it works.

 

[doug]

Well it smacks of desperation, but these are desperate times.

 

[pythagoras]

That's why I said they lack design and quality.

Dutch You forgot massive government subsidization of industry which has suddenly become a no no here, at least for green tech.

 

[ct-fiskerbuzz]

I would say "I'm not sure why everyone seems so down on China" except that I'm pretty sure why everyone seems so down on China. Still, China is in a good position in a number of ways, and is a very large country with a very large population of individuals who have their own ideas and agendas (agendae?) and so on. I would not be so quick to write them off. Back in the 1960s Japan was the country producing cheap crappy knock-offs, but by the early 1990s (if not earlier) they were making some of the most reliable automobiles in the world.

China's chief advantage right now is that they are so desperately in need of, well, everything, that they can make 1,000 or 10,000 of something, then improve it, then make another batch and improve that, and repeat 1000 times (producing 1 or 10 million) and still be in "startup" mode on that item. In other words, they have the option of rapid technological advances even while using mass production techniques.

They do have a big disadvantage in legal and cultural institutions regarding things like "intellectual property" (and even physical property in many cases, based on stories I've heard...).

 

[SoCalGuy]

I'm not sure that's entirely accurate. China, for example, has a few towns (population 1M+) that are testing pure electric bus fleets with 440V fast charging stations that can refuel these buses very quickly. In many respects, China is willing to take a leap of faith in commercializing the nascent/unproven tech and the world is benefiting from that cavalier approach. Ditto on bullet trains (California's bullet train will be the slowest and most expensive per mile in the world! Where is the innovation there?!)

 

[AnOutsider]

http://www.greencarreports.com/news/1081954_down-to-the-wire-fisker-wants-partner-by-next-month

FIsker apparently values that powertrain at $1 billion or more, promoting it as a quick and easy way for a company to jump ahead in the growing field of plug-in cars without having to start from scratch.

1b? Eh...

One of the companies Fisker is talking to is Wanxiang America, a unit of China's largest car parts manufacturer.


Last year, Wanxiang agreed to buy A123 Systems, the bankrupt maker of lithium-ion cells used in the battery packs for the Fisker Karma luxury sport sedan.

Might be a good package deal for Wanxiang though.

 

[dennis]

China's Wanxiang looking to invest in Fisker Automotive

Wanxiang America Corp. is interested in investing in electric car maker Fisker Automotive Inc.

According to Wanxiang, an Elgin-based subsidiary of China's Wanxiang Group, it is looking into how it can help the Anaheim Calif.-based automaker as a key supplier, strategic partner or investor.

Wanxiang has spent much of the last decade scooping up more than two dozen troubled American companies. Yet despite rumors, Wanxiang has no plans to purchase the Fisker Karma hybrid maker; rather, the company told Crain's, it is interested only in offering a helping hand.


Read more: http://www.chicagobusiness.com/arti...-to-invest-in-fisker-automotive#ixzz2JNgq9OMK

 

[dennis]

Also this:

http://www.bloomberg.com/news/2013-01-29/fisker-hires-huron-to-help-conserve-cash-during-strategic-review.html

Fisker Automotive Inc., the rechargeable-car maker that’s seeking a partner or a buyer, hired Huron Consulting Group Inc. (HURN) to help manage day-to-day operations during negotiations.

Huron’s Hugh Sawyer is serving as chief administrative officer, said Roger Ormisher, a spokesman for Anaheim, California-based Fisker.

Fisker is seeking first-round bids by early February, according to two people with knowledge of the matter.

 

[Al J]

In addition to Wanxiang receiving approval to conclude A123. This appeared in Crain's

http://www.chicagobusiness.com/article/20130129/NEWS05/130129776?template=mobile&X-IgnoreUserAgent=1

It seems some good news is at least indicated on both fronts

 

[doug]

http://www.bloomberg.com/news/2013-01-29/fisker-hires-huron-to-help-conserve-cash-during-strategic-review.html

Fisker Automotive Inc., the rechargeable-car maker that’s seeking a partner or a buyer, hired Huron Consulting Group Inc. (HURN) to help manage day-to-day operations during negotiations.

Huron’s Hugh Sawyer is serving as chief administrative officer, said Roger Ormisher, a spokesman for Anaheim, California-based Fisker.

How does something like that normally work to help save cash? Does hiring outside administrators allow them to layoff higher paid employees?

 

[dennis]

How does something like that normally work to help save cash? Does hiring outside administrators allow them to layoff higher paid employees?

No, they are hiring someone whose skill is managing cash. A friend of mine knows the guy they hired and said he is very good at this.

 

[ct-fiskerbuzz]

No, they are hiring someone whose skill is managing cash. A friend of mine knows the guy they hired and said he is very good at this.

Way oversimplified example: imagine you have somewhat irregular cash income of $10k per month on average, but some months you get $30k and some months you get nothing.

If you can pay bills via credit card and have different cards with different due dates, you can use them to defer actual cash payments for up to two months as needed, so that if you have two months of no cash income followed by one $30k month, you can handle that.

Cash flow is very different from profit/loss, and requires separate management.

 

[doug]

Thanks.

 

[Fabulist]

@ct-fiskerbuzz: Thank you for that explanation. I wasn't entirely clear on what he was supposed to be doing either.

 

[Nin ja]

If they have to get a chief Admin offier to manage cash flow, what happend to the CFO, comptroller and accouting staff? IMHO - This sounds more like a work force reduction to concern cash and an adminsitrator to handle the comptroller function -- hmm!.

 

[doug]

http://www.huronconsultinggroup.com/Company/Leadership/Hugh_E_Sawyer.aspx

Hugh has more than 30 years of experience leading turnarounds, bankruptcies, operational improvement and mergers and acquisitions for both public and private companies across a diverse group of industries...

Well, seems to have all the possibilities covered.

 

[Nin ja]

If they have to get a chief Admin offier to manage cash flow, what happend to the CFO, comptroller and accouting staff? IMHO - This sounds more like a work force reduction to conserve cash and an adminsitrator to handle the comptroller function -- hmm!.

OR maybe to help in the merger and aqusition ???