Fisker halts production of the Ocean SUV due to financial problems

The California-based manufacturer has just announced that production of its Ocean electric SUV at its Austrian plant in Graz came to a halt last Monday, March 18, and will remain suspended for at least six more weeks. It is a drastic decision the company has been forced to take to avoid the possibility of finding itself in bankruptcy in the more or less near future.

Fisker’s management states that this production pause will allow them to balance inventory levels and take new strategic initiatives that consolidate the company’s viability. The sale of $150 million in convertible bonds to a Polish investment fund should provide the financing the company needs in the coming weeks, although this deal has not yet been closed.

Fisker warned a few weeks ago about the difficult financial situation it was going through, which could lead to the halt in production of the Ocean SUV that has now finally occurred. Some reports published by well-known financial media even claimed that the company had contacted a team of consultants in order to receive the advice needed to face a possible insolvency situation.

All of this happened just after the company decided not to pay the $8.4 million in interest on convertible bonds, arguing that it had taken this decision in order to try to gain time and renegotiate terms with investors.

A new path opens up that could make the continuity of the California firm possible

In the company’s most recent press release, Fisker now states that it has started talks with a major automaker. The deal being negotiated would involve a significant investment from this manufacturer for the joint development of one or more platforms for electric vehicles and their subsequent production process.

The most recent rumors published in several international automotive media precisely suggest that this manufacturer could be Nissan. The Japanese firm’s investment would make Fisker’s viability possible on the one hand and, on the other, would allow Nissan to have a new platform for its future electric pickups. However, although these talks seem to be very advanced, the final agreement has not yet been reached.