Fisker faces bankruptcy risk, applies for court protection in Austria and seeks restructuring

Fisker, an electric car maker, has applied for restructuring and court protection in Austria after announcing on May 8 that it would halt production at its contract manufacturer plant in the country.

This resubmission is similar to filing for Chapter 11 bankruptcy protection in the United States. Fisker warned that the company will face bankruptcy if it cannot obtain additional financing. Meanwhile, Fisker has officially suspended production of the Ocean EV model at its factory in Graz, Austria, which has been operated by its contract manufacturer Magna Steyr.

Fisker’s business entity in Austria manages the contract manufacturing of its innovative electric vehicles. The company has recently encountered severe challenges in its operational and financial conditions. In order to gain a buffer against the difficulties and at the same time carry out strategic transactions or other asset sales to maximize asset value, Fisker Austria decided to apply to initiate its own management restructuring process. Under the protection of the court, the company will continue to pay wages to employees while selling and repairing vehicles. Fisker's business entities outside Austria are not included in the restructuring process.

The automaker further stated in the relevant document: "Fisker continues to explore all possible options to maximize the value of its global business." In addition, Fisker continues to explore all possible options to maximize the value of its global business. The company faces other woes, including a suspension from the American Stock Exchange after its stock price fell below $1 within 30 days, and the possibility of large-scale layoffs in the coming months. Its partner Magna Steyr also announced that it plans to lay off 500 employees at its Graz factory due to the suspension of production of many models, including Ocean.

New models such as the BMW Z4 and Toyota Supra have been added this year. At the same time, BMW is expected to launch the BMW G-class electric model in 2026. "The next three years in Graz will be very challenging," Magna Steyr CEO Roland Pleitner told an Austrian news outlet.

So far, Fusco has It said it would lay off 15% of its global workforce while continuing to seek additional equity or debt financing. Although the company was reportedly in talks and had secured $1.5 billion in financing commitments, the deal has yet to materialize.

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