Fisker has changed its position regarding recall repairs for Ocean SUV owners, now stating that it will cover both parts and labor costs. This announcement follows the company’s initial communication, where it informed owners that they would be responsible for labor expenses associated with repairs.
The updated information is reflected on Fisker’s FAQ page, clarifying that “Fisker will provide the necessary parts (including the labor) at no cost to you.”
Company Miscommunicates Recall Details to Owners
The controversy began on a recent Sunday when Fisker detailed the recalls affecting the Ocean SUV. Three of the five recalls can be resolved through over-the-air software updates at no charge. These include issues related to:
- Sudden loss of power
- Incorrect warning light displays
- Reduction in regenerative braking capabilities
However, the other two recalls necessitate physical repairs. Some vehicles have malfunctioning door handles, and all require the replacement of an electric water pump linked to power loss incidents.
Initially, Fisker assured owners it would cover the cost of parts but indicated that labor costs for inspections and repairs would fall on the owners. The company plans to provide a list of authorized service providers to facilitate the repair process, with this information expected by the end of September 2024.
This announcement arrives as Fisker navigates its Chapter 11 bankruptcy proceedings, entering its fourth month. Recently, the company reached a settlement plan involving key stakeholders, including its largest secured lender, the committee of unsecured creditors, and contract manufacturer Magna. After months of negotiation, a resolution was achieved regarding the distribution of proceeds from the liquidation of Fisker’s assets. A court hearing has been scheduled for early October to consider the approval of this settlement plan.
In a significant development, Fisker has finalized a sale of nearly all its remaining vehicle inventory to New York vehicle leasing firm American Lease for up to $46.25 million. To address its financial obligations to creditors, the company must now liquidate its remaining assets, which are reportedly valued at over $1 billion. These assets largely comprise manufacturing equipment previously utilized at Magna’s factory in Austria.
