Fisker Could Sell Controlling Share To Zhejiang Geely Holding Group

Financially challenged Fisker Automotive may be entertaining serious bids for a controlling interest by two Chinese suitors.

The one looking most favorable, according to a “knowledgeable individual” who spoke to Reuters is the Zhejiang Geely Holding Group.

Another possible contender is Dongfeng Motor Group Co. which is owned by the Chinese state, but word has it this government-controlled entity may be mired down with decision makers, and not the perfect partner for Fisker.

Geely however is controlled by one man, Li Shufu, and his company also owns Volvo of Sweden. In Geely’s favor, according to the report, is the company is prepared to move fast, demonstrates passion and is “more serious.”

Offers being made are reportedly in the range of $200 million to $300 million, and this could set the Anaheim-based company on track to build its series plug-in hybrid Atlantic expected to start at around $55,000.

Fisker has confirmed the company has received offers, but it and the parties said to be directly involved refuse to elaborate.

Reuter’s source is described as being close to both Geely and Fisker, and said Geely has previously showed itself adept at making cross-border acquisitions, and successfully negotiated purchase of Volvo in 2010 from Ford Motor Co.

“Overall, we think Geely is a better fit,” the said the source.

Also expected to be involved is Fisker’s present battery supplier – Wanxiang Group – which purchased A123 Systems business operations.

Bids now being considered were reportedly made around the time of a January trip to Asia by Fisker CEO Tony Posawatz. If things go as planned, and given Fisker needs the funds quickly, it is said a deal could be finalized as soon as the middle of March.

Reuters