Fisker reverses recall repair fees for Ocean owners amid bankruptcy

Fisker, an electric vehicle startup, has recently reversed its decision regarding recall repairs for Ocean SUV owners. Initially, the company informed owners that they would be responsible for labor costs associated with recall repairs, which included issues like sudden loss of power and faulty door handles. However, after backlash, Fisker updated its FAQ to clarify that it would cover both parts and labor at no cost to the owners. This change comes as Fisker navigates its Chapter 11 bankruptcy process, entering its fourth month. The company has reached a settlement plan with key stakeholders, including its largest secured lender and unsecured creditors, to determine how to distribute proceeds from the liquidation of its assets. A court hearing is scheduled for early October to potentially approve this settlement plan. Additionally, Fisker has sold most of its remaining vehicle inventory to a leasing company for $46.25 million and is now focused on liquidating over $1 billion in assets, primarily manufacturing equipment, to repay creditors. This situation highlights the challenges faced by startups in the competitive EV market, especially during financial distress.