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Fisker loses $30 million in cars to Superstorm Sandy

300 Karmas were destroyed by flooding, fire at the Port of Newark last week.

By Claire_Martin Nov 7, 2012 9:17AM
Fisker Karma photo by Fisker AutomotiveGood news has been hard to come by for Fisker Automotive, and the loss of 300 Fisker Karmas to Superstorm Sandy last week only added to the electric automaker's woes this year. 

A shipment of the plug-in hybrids, each worth roughly $100,000, was flooded at a New Jersey port when Sandy ravaged the region. Additionally, a fire sparked by the encroaching seawater swept through 16 of the 300 vehicles.

“[The cars] are completely done,” Fisker spokesman Roger Ormisher told the Wall Street Journal

More than 10,000 vehicles were damaged at the Port of Newark, where the Karmas were being kept. 

The hit comes in the wake of three highly publicized recalls for the low-volume automaker. In December, Fisker recalled 239 cars for shoddy hose clamps and was forced to add 19 more cars to the recall in June. In August, Fisker recalled all of its cars -- about 2,400 -- for defective cooling fans that were reported to have caused at least two fires. Separately, in March, Fisker battery supplier A123 Systems recalled defective batteries it had supplied to the automaker, which caused the Karma owners to get their cars serviced yet again. Three weeks ago, A123 declared bankruptcy

In September, Consumer Reports gave the Karma a failing grade. "The Karma falls short with: poor dash controls, limited visibility, a cramped interior, awkward access into and out of the seats, an engine that is noisy when running, long battery recharge times, and a small back seat and trunk," tester Jeff Bartlett wrote. The car actually broke down on the Consumer Reports track. 

In what's perhaps a rare stroke of luck, the Sandy-damaged vehicles won't affect Fisker's bottom line; the company is expecting reimbursement from its insurance company. 

3Comments
Nov 7, 2012 1:38PM
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That's great that they are being reimbursed by their insurance company, but how many customers who put deposits down on those vehicles are now going to change their mind because the are tired of waiting to take delivery of their vehicle?
Nov 8, 2012 1:43PM
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Sandy turned out out be good fortune for Fisker.  Now they get to sell 300 replacement cars courtesy of their insurance company.  Still, this just delays the inevitable Chapter 11 filing.
Nov 9, 2012 1:01PM
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prob the best news they have heard since their introduction, clip the ins. coupon and thats a wrap!

 

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