The possibility that Wanxiang Group of Hangzhou, China, might acquire bankrupt Fisker Automotive got a boost on Friday. Reuters reports, “A U.S. judge rejected a planned sale of Fisker Automotive to Hong Kong businessman Richard Li in favor of competitive bidding, opening the way for China's largest auto parts company to bid for the maker of the Karma plug-in hybrid sports car.” As I reported earlier, creditors had asked the bankruptcy judge to consider holding an auction in which the U.S. subsidiary of Wanxiang Group, which now owns battery maker A123, could bid for Fisker, along with other interested parties. According to Reuters, “U.S. Bankruptcy Judge Kevin Gross said on Friday competitive bidding between a company affiliated with Li and a unit of auto parts maker Wanxiang Group of China was the best way forward.”
Reuters reports that Gross said, “I think that, for me, at the end of the case, whether or not the price paid was fair or reasonable, I think an auction will provide that mechanism. That is the most favored method.” He scheduled a hearing for 2 p.m. EST Monday to decide how to proceed with an auction.
According to autobloggreen, “Wanxiang has also said that if it gains control of Fisker, it could restart Karma production in Finland and then wants to build a next-gen model…in Michigan alongside the gas-powered version of the Karma, the Destino. Wanxiang is also hinting that it could build future models in Delaware, 'if there's enough consumer demand.'”