Fisker Ocean owners face costly recall repairs amid bankruptcy

Fisker, an electric vehicle startup, is currently navigating its Chapter 11 bankruptcy process, which has now entered its fourth month. Amid this challenging situation, owners of the Fisker Ocean SUVs have been informed that they will be responsible for labor costs associated with two of the five recalls affecting their vehicles. The company disclosed this information through an FAQ on its website, indicating that while three recalls can be addressed via free over-the-air software updates, the remaining two require physical repairs. The recalls include issues such as faulty door handles and a malfunctioning electric water pump, which has been linked to power loss in some vehicles. Although Fisker will cover the cost of the necessary parts for these repairs, owners must pay for the inspection and repair services at authorized providers. Fisker has committed to providing a list of these service providers by the end of September 2024. This announcement follows a recent settlement plan reached by Fisker with its major secured lender, the committee of unsecured creditors, and contract manufacturer Magna, among others. The settlement outlines how the proceeds from the liquidation of Fisker’s assets will be distributed, following a period of intense negotiations. A court hearing is scheduled for early October to potentially approve this settlement plan, which could have significant implications for the company’s future and its ability to support its customers during this tumultuous time.