US – After almost two years of bidding, Fisker Automotive has formally announced its acquisition by Wanxiang American. The latter will pay $149.2m to secure the group, which declared bankruptcy in November last year.
Fisker’s attorneys expressed satisfaction that the final price resulted in a sum six times higher than that expected outside auction. Wanxiang, a subsidiary of China’s largest auto parts company, was successful in holding off the bidding of Hybrid Tech Holdings.
Following approval by the bankruptcy court, Wanxiang is expected to acquire the assets of Fisker’s plant in Wilmington, Delaware. If there is enough demand in the market, the parts manufacturer may consider mass producing Fisker cars at this location, potentially in as little as 18 months' time. Wanxiang will also need to implement a procedure for dividing up the money owed by Fisker to various parties.
This latest development marks the second substantial acquisition for Wanxiang, after it purchased all of the non-government business assets of lithium battery company A123Systems, in January 2013.