Electric vehicle manufacturer Fisker says it’s halting production of its vehicles for a period of six weeks. According to the company, the pause will allow it to “align inventory levels and progress strategic and financing initiatives.”
It’s no secret that the fledgling company is experiencing difficulties. In February, it announced a wave of layoffs, and we also learned that it was in talks with a major automaker (widely believed to be Nissan) to find a financial partner. Without help, the company may not survive the current year.
A few days ago, Fisker was consulting restructuring specialists, with a view to a possible bankruptcy protection filing.
In spite of this, and even with the interruption in production - which took effect yesterday (March 18) -, Fisker says it continues its talks with the automaker with a view to creating a strategic partnership. This could take the form of joint development of an electric vehicle platform or manufacturing agreements in the U.S.
On the good news side, Fisker has announced a new round of funding and a commitment from an existing partner. We're talking about $150 million, but to receive this aid, the company will have to file a form with the SEC (Securities and Exchange Commission), which is the US federal agency that regulates and controls financial markets. This form is an annual report giving a complete summary of the company's financial performance.
On Monday, the Wall Street Journal reported that the automaker's shares were down another 16 percent, for a total of 90 percent since the start of the current year.
It's all going to come down to the wire for this company over the next few months.