It was almost settled that the troubled auto maker Fisker would be sold to by the Department of Energy to Hybrid Tech Holdings LLC for $25 million. However, a last-minute bidder, Wanxiang America, has emerged from the shadows hoping to snatch the company up in a ‘stalking horse’ deal.
Stalking horse offers, says Autoblog, prevent undervalued deals from taking place. So it’s kind of ironic that Wanaxiang’s offer for Fisker is actually lower than what HTH was going to pay. Wanaxiang will pay $24.7 million, but they will assume some of Fisker’s liabilities.
The best part of Wanxiang America’s proposed rescue plan for Fisker is their eagerness to resume Karma’s production as soon as possible. Not only that, they want to add new Fisker models, confident that they have the resources to produce and sell at least 1,000 cars in the first 18 months in the US, with another 500 in Europe. They’ve already come up with a rendering of what a hatchback Fisker, based on the Atlantic model, would look like. They are even thinking about trucks, cargo vans and SUVs.
Of course, Wanaxiang could be another optimistic investor. Too optimistic, in fact, as their deal may not even go through. Fisker has reportedly asked the judges that will decide the fate of the stalking horse deal to deny Wanaxiang’s offer. One things’ clear though. The Department of Energy is not getting their $139 million back any time soon.