Feb 14 Wanxiang Group, China's largest auto
parts company, won a bankruptcy auction for the assets of Fisker
Automotive, the defunct manufacturer of the Karma plug-in hybrid
sports car, two sources who were briefed on the auction told
Wanxiang outbid an affiliate of Richard Li, a Hong Kong
billionaire and Fisker investor, the people said on Friday.
The sale will be presented to the U.S. Bankruptcy Court in
Wilmington, Delaware on Tuesday for approval by Judge Kevin
The auction began on Wednesday and ended on Friday. The
sources, who declined to be identified by name because the
result is not yet public, did not disclose the value of
Wanxiang's final bid. Li had presented an initial bid of around
California-based Fisker was the brainchild of Henrik Fisker,
a former BMW designer. The company's elegant cars were hobbled
by cost overruns and tech glitches and in 2012 it stopped
production to conserve cash.
Wanxiang has been building a U.S. manufacturing presence and
last year the U.S. government cleared it to acquire the bankrupt
assets of A123 Systems Inc, which made Fisker batteries.
Both Fisker and A123 were funded in part with loans from the
U.S. government that were meant to foster clean-fuel
technologies. Wanxiang outbid Johnson Controls Inc for A123, and
the Chinese company also overcame an active lobbying effort to
block it from obtaining technology developed with U.S. taxpayer
Fisker filed for bankruptcy in November with a plan to sell
its assets to Li in return for Li forgiving a portion of the
U.S. government loan he had bought. Fisker creditors opposed
that plan, which would have left them with almost nothing, and
instead teamed up with Wanxiang and pushed for an auction.