The Fisker-A123 Systems dispute is getting uglier as Fisker is now claiming that its battery supplier A123 Systems is understating how much it owes its creditors. Fisker purchased 2700 batteries from A123 Systems for its luxury plug-in hybrid and 1900 turned out to be defective. Fisker had warranty agreements with A123 Systems, which the bankrupt lithium ion maker hasn’t honored, leaving Fisker on the hook.
Fisker is struggling and is looking for a buyer. Given the slow pace of plug-in electric sales and the high cost of the Fisker Karma, that’s a tall order. Fisker has raised a whopping $1.2 billion and if the company doesn’t make it, it’ll be one of the biggest VC disasters in history. Adding to the difficulty right now, from my perspective, is the success of Tesla’s Model S. If you’re looking at a high end luxury car with some battery power, I think you’re looking at the Model S, even if you’d like the extended range of the Karma’s plug-in hybrid setup. Maybe a luxury automaker picks up Fisker on the cheap and investors get cents on the dollar? After all, Henrik Fisker has had many relationships as an automotive designer for companies like BMW and Aston-Martin.