Fisker Burned Through $1.4 Billion Since 2007

Fisker Burned Through $1.4 Billion Since 2007

With Fisker assigned to the scrap heap for the time being and unlikely of being rescued unless Bob Lutz or Chinese investors come to the rescue, new information about the company’s horrible financial history has been released. These latest figures reveal that Fisker Automotive burnt through $1.4 billion since 2007!

It all began when Fisker Automotive was granted a $529 million loan from the U.S Department of Energy and while it only received $192 million of that, the company received an incredible $525 million from private investors alone. These investors were not told that the U.S. Department of Energy had cut off its loan in June 2011 and were instead told by Fisker themselves that everything was fine and that the company valued itself at nearly $2 billion.

The financial problems for Fisker Automotive were even more insane from there, as it’s also been revealed that the American electric sports car maker lost at least $35,000 on each and every 2,450 Fisker Karmas produced from 2011 to 2012. That equates to over $85 million in losses purely from the sale of its cars.

The final nail in the coffin for the horrible management of Fisker Automotive was the fact that shareholders and investors were continually told that everything was going well, and were even told in December 2011 that an new Atlantic sedan would launch this year with production then ending seven weeks later.

If Bob Lutz or any other investors want to buy the assets for Fisker Automotive, they’ll have an uphill battle on their hands!

[Reuters]

Published: June 19, 2013 8:01 pm

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