In a recent court filing, the U.S. Department of Justice has raised concerns about bankrupt electric vehicle manufacturer Fisker's proposal to shift the expenses of vehicle recalls onto its customers. Following Fisker's bankruptcy filing in June, which aimed to restructure debt and sell off assets, the company has faced multiple recalls this year to address issues such as faulty door handles, software malfunctions, and safety standard noncompliance.
As per Fisker's bankruptcy plan, the company is obligated to rectify defective and noncompliant vehicles at no cost when presented for service. However, the Department of Justice contends that a provision of the plan allowing vehicle owners to be reimbursed for repairs paid out of pocket is in violation of the National Traffic and Motor Vehicle Safety Act.
Furthermore, the U.S. Securities and Exchange Commission is separately investigating Fisker and has objected to the company’s liquidation plan. The SEC has raised concerns about the lack of clarity regarding Fisker's intentions to preserve its corporate records amidst the bankruptcy proceedings.
Despite these challenges, Fisker has yet to respond to requests for comment on these legal obstacles. As the situation unfolds, the outcome of these regulatory disputes could significantly impact the future operations and reputation of the embattled electric vehicle manufacturer.