Chinese auto parts maker makes unexpected bid for Fisker

The short-lived extended-range EV maker may be bought by a Chinese firm.

China's number one auto parts supplier has made a surprising bid for now-bankrupt extended-range EV builder Fisker Automotive even though the brand was scheduled to be sold to a Hong Kong investor.

The move has prompted Fisker's creditors to ask a Delaware court to hold an open auction for the automaker in hopes that Chinese parts manufacturer Wanxiang Group's interest will raise its value. Wanxiang, which also owns EV battery builder A123 Systems, has reportedly agreed to a $24.725 million initial bid and the parts manufacturer says that it will assume some of Fisker's liabilities.

Wanxiang says that it will restart Fisker vehicle production in Finland as early as April before eventually moving assembly to Michigan. A123 Systems, which Wanxiang also bought out of bankruptcy, is Fisker's battery supplier. Wanxiang has hinted that it would be able to reduce Fisker's assembly costs for its Karma sedan, which could lower the vehicle's roughly $100,000 price tag.

The Delaware court has agreed to hold a hearing on Friday to determine whether Hong Kong investor Richard Li's firm will be able to move forward with its plan to buy Fisker or if the firm will head to an open auction. One of the biggest controversies about Li's $25 million bid is that it is being made using credit on the $168 million Fisker owes to the federal government. In addition, the bid includes no provision to pay other creditors.

Fisker has only been in bankruptcy for about a month, which has raised some red flags among federal judges concerned about the speed at which the firm is set to be sold or dismantled. Meanwhile, Fisker's founder and namesake - Henrik Fisker - and its board of directors face a separate lawsuit from investors.