VL Automotive Looking to Buy Fisker for $20 Million

Jason Siu
by Jason Siu

Fisker’s fall from grace is well documented, and it appears that the value of the company is plummeting in the eyes of potential buyers.

VL Automotive, a team consisting of former General Motors executive Bob Lutz, industrialist Gilbert Villarreal, and China’s Wanxiang Group, have submitted a bid of $20 million to buy Fisker through a prepackaged bankruptcy deal. That’s a shocking figure considering the American electric automaker told prospective investors in December 2011 that its total capitalization was “approaching” $2 billion.

SEE ALSO: VL Productions Destino is a 556 HP, Gas-Powered Fisker Karma

Fisker hasn’t made a vehicle since July, and resale value of its Karma is dropping as uncertainty with the brand continues to grow. In spring 2012, Fisker completed a round of fundraising that valued the company at $2.2 billion according to filings analyzed by venture capital data provider VC Experts.

The bid isn’t surprising from VL Automotive, who wishes to build the Destino, essentially a Fisker Karma powered by a traditional powertrain from the Chevrolet Corvette. Wanxiang was also the company that bought out A123 Systems, Fisker’s old battery supplier.

Fisker currently owes the Department of Energy about $171 million in loans.

[Source: Reuters]

Discuss this story at FiskerBuzz.com

Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

More by Jason Siu

Join the conversation