Chinese Automakers Bidding For Fisker Automotive: Report
Antony Ingram February 18, 2013 Comment Now!
Chinese companies Geely and Dongfeng are said to be among bidders from "different continents" looking for a controlling stake in troubled automaker Fisker Automotive.
Fisker, which has suffered setback after setback over the last few years of its Karma range-extended sedan being on sale, is currently seeking buyers and investors.
Bloomberg reports the Dongfeng Motor Group, a Chinese state-owned car company, has offered $350 million for an 85 percent stake in Fisker.
Reuters says rival Chinese company Geely has also put in a bid, and is currently considered favorite to secure a stake in Fisker. Buyers in South Korea and Europe are also said to be interested, but neither has put in a firm bid.
Fisker spokesman Roger Ormisher told Bloomberg, "The company has received detailed proposals from multiple parties in different continents, which are now being evaluated by the company and its advisers."
The Huron Consulting Group is currently overseeing Fisker's day-to-day running, helping the automaker conserve cash while a buyer is found.
Geely's position as favorite for Fisker ownership is due to its "fast-moving" nature, compared to that of the bureacratic, state-run Dongfeng. Fisker's tight deadline to find a buyer could see the rapid decision-making of Geely win out. The company is also more experienced in cross-border acquisitions--the Chinese giant already owns luxury Swedish automaker Volvo.
A team of engineers from the company has already been sent to Fisker's Californian headquarters in Anaheim, to evaluate the company and its technology.
Neither Geely nor Dongfeng have officially commented on the bidding process.
The Chinese bidding comes only weeks after Fisker's battery supplier, A123 Systems, was also bought out by a Chinese company, Wanxiang Group.
China Dongfeng Electric Cars Fisker Automotive Geely Green Cars