Geely Drops Out Of Bidding For Fisker Stake

By William Maley

Staff Writer - CheersandGears.com

March 19, 2013

Last month, we reported that Fisker had two possible bidders for a possible stake in the company. The two bidders in question were Zhejiang Geely Holding Group and Dongfeng Motor Group. At the time, Fisker was leaning towards Geely due to the company's experience of acquiring a foreign automaker (Volvo) and management structure.

But Geely has dropped their bid for Fisker. Two sources tell Reuters that the reason Geely dropped their bid was due to Fisker's obligations to the U.S. Government which included obligation to restore capacity and jobs at Fisker's Delaware plant according to a schedule imposed by the government.

"Those obligations are too complicated to handle and seem too risky. The plan's footprint was too big. It would take a long, long time to fill up the plant with products and restore employment there," a source said.

This leaves Dongfeng Motor Group as the sole bidder for Fisker. The company sent their final bid last week.

As for those who think this was why former Fisker chairman and founder Henrik Fisker stepped down, sources explain this is not related.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.