Key Points:
- The NHTSA is investigating complaints of door failures, including latch and handle malfunctions, in Fisker’s 2023 Ocean SUVs.
- Fisker faces financial challenges, including delisting from the NYSE and failed investment talks with a major automaker.
- The company plans to lower prices for its 2023 Ocean SUV models to boost sales and raise capital. Like other makers, Fisker is facing intense market competition.
- Fisker announced on March 18 a six-week pause in vehicle production as part of its efforts to address financial pressures.
Following complaints about door failures, the U.S. auto safety regulator has initiated a preliminary probe into Fisker’s 2023 Ocean SUVs. The National Highway Traffic Safety Administration (NHTSA) disclosed that it had received 14 complaints regarding intermittent failures of the latch and handle, hindering the opening of the driver, front passenger, and/or rear doors. Additionally, some reports indicated that the emergency override mechanism also malfunctioned.
The NHTSA’s preliminary evaluation aims to assess the scope and severity of the potential problem and its impact on safety. The regulator may close the investigation without further action, depending on its findings. Fisker, which recently faced delisting from the New York Stock Exchange due to non-compliance with listing norms, has not yet responded to requests for comment.
This isn’t the first time the NHTSA has scrutinized Fisker. The company is also being investigated for two prior incidents, one concerning issues with the 2023 Ocean SUV’s brakes and the other related to unintended vehicle movement.
Fisker’s future has become increasingly uncertain following the collapse of talks with a major automaker for a potential investment. This has prompted the company to explore restructuring options, including in- or out-of-court proceedings and capital market transactions. In response to financial challenges, Fisker announced plans last week to reduce prices for its 2023 Ocean SUV models to stimulate sales and raise capital to meet debt obligations amid dwindling cash reserves.
Like many other electric vehicle (EV) manufacturers, Fisker is grappling with fierce competition in the EV market. This is compounded by consumer hesitation to make significant purchases due to rising borrowing costs and economic uncertainties. In a move to address financial strains, Fisker announced on March 18 that it would halt vehicle production for six weeks.
