The car manufacturer Fisker is not yet at a standstill. However, difficulties continue to accumulate, especially for customers who have placed their trust in the young brand.
Fisker officials are still hoping to bounce back, at least those who have resisted the various waves of layoffs. However, there are not many people left to keep the business running. While there were more than 1,200 employees at the start of the year, only a handful remain. Layoffs are the tip of the iceberg. In an article from May 31, 2024, Techcrunch takes readers into all the other dysfunctions of the young car manufacturer.
Management problems are apparently not recent. Fisker lacks technical documents, spare parts and personnel. Even the services promised to customers are ancient history.
Fisker does not anticipate its parts inventory or after-sales needs
Behind the Fisker brand, there is not only Henrik Fisker, the boss with the talent of an automobile designer. There is also his wife Geeta Fisker, who wears the double hat of financial director and director of operations. But, in recent months, the couple has been strongly criticized for management of the company considered far too light.
This is particularly the case for the management of after-sales service, but also for the constitution of the stock of spare parts for repairs. The brand has somewhat overestimated the quality of its models or knowingly chose to make savings on a position that is nevertheless crucial for the image of an automobile manufacturer.
When the first breakdowns and accidents occurred on the Fisker Ocean, the brand did not have enough parts in stock. She was then quickly overwhelmed by requests. According to former employees, the brand went so far as to draw directly from the assembly lines of new vehicles at Magna Steyr (the Austrian factory) to send the parts for repairs. An even more surprising testimony, entrusted to Techcrunch, tells that the personal vehicles of Henrik Fisker and that of one of his directors in the USA would have served as organ donors (parts) for customers who had broken down.
Geeta Fisker also judged that managing after-sales service requests through tickets posted on the website would be sufficient and economical. Here again, the company quickly had to find a solution to hire a hotline, which it apparently forgot to set after several months of activity. Apparently, financial management was not the Fiskers’ strong suit. The company still managed to misplace around 16 million euros paid by customers for a while.
Services removed for customers
Fisker customers were unpleasantly surprised to discover by email that roadside assistance was stopped as of May 5 in Europe (and a little later in the USA). This service was supposed to help Fisker Ocean drivers for 6 years or 100,000 km. This covered all types of breakdowns: from punctures, to mechanical breakdowns and even excessive optimism about the remaining battery life.
Customers always have the possibility in Europe to turn to their insurance for repairs in the event of a breakdown (if they are covered). But this assistance also had the merit of being able to give very specific advice, in the event of more specific problems with the vehicle. Customers are now left to their own devices. Fortunately, the Fisker ownership community pulls together to help each other with the vehicle’s little bugs.
Customers who bought one of the 5,000 limited launch editions (Fisker Ocean One) lose out even more than the others. They paid full price for the vehicle, with new services included like extended warranty, charging credits and additional accessories. Except that Fisker never took care of satisfying the marketing promise worth 37 million euros. Now that there is no more money in the coffers, needless to say, customers will never see the color of these benefits.
Models sold for $11,000 in the United States
To recover funds to inject them into the survival of the company, Fisker absolutely must sell the stock of models produced. Direct sales to customers have been abandoned and vehicles have been sent to dealers who act as discounters. Huge discounts have been granted in Europe as well as in the USA.
Discounts of more than €20,000 are notably offered to customers in France, and by negotiating a little, it is possible to obtain more. In the USA, testimonials from potential customers are pouring in about even cheaper vehicles. A testimony on Reddit even tells of having had an offer for less than 15,000 dollars (around €14,000) on a vehicle guaranteed for only 7 days, which the dealer apparently wanted to part with quickly. At this price, the buyer can always resell it for parts and he will already be a winner, given the rarity of spare parts on this model.
Successive waves of layoffs
A bit like at Tesla, one wave of layoffs can hide another. Most services operate in survival mode. Difficult to have a precise count of recent numbers, the waves of departures have continued. As for those who were not laid off at the start of the year, they were sometimes laid off as late as the last week of May.
According to Techcrunch, approximately 150 employees remain, but departures are expected to continue, with no department being spared. Newly dismissed employees express themselves quite openly on social networks and on Reddit. They share their experience, often chaotic within the company.
A good number of customers and investors have made up their minds, imagining the imminent end of the brand. But, some still persist in believing in the possible rebound of the company. The silence of Henrik Fisker, who nevertheless likes to promise the Moon and be in the spotlight, is surprising on social networks. Many people don’t care. The boss of Fisker is still supposed to speak at an event in India on June 20 and 21, which does not fail to provoke comments, not always laudatory, and some questions.
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