Wed Sep 18 18:27:00 UTC 2024: ## Fisker Reverses Course on Recall Costs, Now Offering Free Repairs Amid Bankruptcy
**LOS ANGELES, CA** – Electric vehicle startup Fisker has made a dramatic change in its approach to recall repairs, just days after informing owners they would be responsible for labor costs. The company initially announced that while parts for the five recalls would be covered, owners would have to pay for inspection and repair work at authorized service providers. However, the company has since edited its FAQ page to state that Fisker will now provide “the necessary parts (including the labor) at no cost to you.”
This reversal comes at a pivotal time for Fisker, as the company navigates its fourth month in Chapter 11 bankruptcy. The company recently reached a settlement plan with its biggest secured lender, creditors, and manufacturer Magna, outlining the division of proceeds from a liquidation of Fisker’s assets. A judge is set to review the plan in early October.
Fisker has already sold off its remaining vehicle inventory to American Lease for up to $46.25 million. Now, the company is working to liquidate assets, estimated to be worth over $1 billion, consisting primarily of manufacturing equipment. This move is intended to repay creditors.
While the shift on recall costs may appear generous, it’s important to note that it occurs amidst a period of financial uncertainty for Fisker. The company’s future remains unclear as it struggles to recover from its financial difficulties.
First Piper 