2012 Fisker KarmaEnlarge Photo
Bloomberg says that Huron Consulting’s Hugh Sawyer has been put in place as a chief administrative officer during negotiations with prospective partners. Sawyer’s day-to-day role will also involve cash flow management for Fisker, which is recovering from a string of bad luck in 2012.
Product recalls were followed by a dramatic loss of inventory in Superstorm Sandy, for which Fisker’s insurer has denied payment. A123 Systems, Fisker’s litium-ion battery manufacturer, declared bankruptcy in October, putting a temporary hold on Karma production.
The potential light at the end of the tunnel is this: Chinese auto parts giant Wanxiang has been granted approval to purchase the assets of A123 Systems, meaning that Fisker’s production should resume in the near future. It’s reportedly got enough cash on hand to last through mid-year, but there’s no doubt that the clock is ticking.
Fisker hopes to get bids from prospective partners by early next month. Word is that Fisker is in dialogue with companies across the globe, but some are simply interested in buying the automaker’s brand or its technology.
After surviving its debut year, Fisker needs to catch a few breaks in 2013. Resuming production will be a step in the right direction, as will securing the funding it needs to move forward.