Lane is a Partner Emeritus at Kleiner Perkins Caufield & Byers (KPCB), the firm whose credibility and backing enabled Fisker to raise hundreds of millions of dollars in private capital.

Ray Lane.

The usually successful investor has a long and distinguished resume, that includes previously being the president and chief operating officer of Oracle Corp, and present service on the board of Hewlett-Packard and as Chairman of the Board of Carnegie Mellon University.

The confirmation of Lane’s departure came yesterday from KPCB. Comment was not offered as to what specifically led to Lane’s stepping down from Fisker’s board, and Fisker has not answered queries.

News from outside sources has been that two notable bidding groups are looking to snap up remaining Fisker assets at fire sale prices.

Things are described as very much fluid, and Fisker this year consulted with a bankruptcy firm to plan for that contingency as well.

Complicating matters is $171 million in outstanding debt to the U.S. government.

One investor group includes Henrik Fisker, who left the company in March this year. This group is led by Hong Cong billionaire Richard Li, and the group is reportedly attempting to avoid Fisker’s entering into bankruptcy.

The other group includes the “father of the Chevy Volt,” Bob Lutz – also of Dodge Viper fame, and outspoken “car guy.” This group along with the Wanxiang Group has reportedly offered to buy Fisker in bankruptcy.

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Henrik Fisker abruptly left the company he co-founded six years ago in March this year, and Reuters says the investors are discussing purchase of the U.S. Department of Energy’s outstanding loan – at pennies on the dollar – along with avoiding bankruptcy by Fisker Automotive.

The Energy Department is owed $171 million and provisions could allow it to try and negotiate what amounts to damage control and selling off the debt at a loss to minimize otherwise greater loss to taxpayers.

The other group said to be thinking about doing something similar to Li and Henrik Fisker, as previously reported, includes Bob Lutz – the “L” in VL Automotive which already has a Web site with Fisker bodied, Corvette-engined cars, but without a reliable supply of the needed bodies.

Lutz and company are looking at snapping up the former 400-plus employee company at fire sale prices of $20 million, and sources said this could crest higher, and may need to, given more money is reportedly on offer by Li and his group.

Sources have agreed avoiding bankruptcy could be desirable for Fisker in maximizing what value it can return to investors.

Henrik Fisker has reportedly been communicating with potential investors to get in on a deal to revive his former company. What role the talented designer who has also penned Aston Martins and BMWs remains unclear.

The group he’s said to be involved with led by Li has reportedly bid on the outstanding Energy Department loan for a sum in the range of $25 million to $30 million.

While higher than what the group Lutz had initially offered, it amounts to 17.5 cents on the dollar back to U.S. taxpayers.

Anything could happen, however, and inquiries to Fisker Automotive, and others involved have gone unanswered.

Automotive News

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We heard news not long ago that Detroit-based VL Automotive, in which ex-GM executive Bob Lutz is involved, is planning on selling V8-powered Fisker-bodied vehicles.

According to news agency Reuters, VL Automotive is partnering with China’s Wanxiang Group with the goal of acquiring the post-bankruptcy assets of Fisker.

If this story seems familiar, keep in mind that Wanxiang is the Chinese company that acquired the automotive division of then also bankrupt battery maker A123 Systems.

Interestingly, A123 Systems was the battery provider to Fisker.

It is then not surprising to see VL Automotive and Wanxiang team up for the assets of Fisker considering VL Automotive needs Fisker bodies for its Destinio (pictured) to see the light and that Wanxiang needs Fisker to be alive to provide batteries to the Karma.

Reuters said in its article that “this comes alongside a separate push by investors in Europe and Hong Kong, including billionaire Richard Li, to buy out the U.S. Department of Energy’s position in Fisker.”

Fisker’s Karma were assembled by long-time automotive supplier Valmet.

Fisker has not commissioned Valmet to build a single Karma plug-in hybrid since July 2012 and has seen its founder, automotive designer Henrik Fisker, leave the company abruptly mid-March.

On April 5, 2013, Fisker Automotive laid off160 of its employees; word has it a mere 53 employees remain out of the Anaheim-based company that once boasted over 400.

As is often the case in these situations, no one involved would comment, confirm or deny the information. One thing is sure: negotiations are underway for Fisker’s assets and everyone could be surprised by the outcome.

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This will allow the company to combine the activities of several previous groups of A123 Systems under one division.

This new division, headquartered in Westborough Massachusetts, will continue to design, develop, and manufacture lithium-ion energy storage systems ranging from small industrial batteries to multi-megawatt grid-scale energy storage systems.

A123 Energy Solutions said it will also continue to support its network of value-add channel partners, distributors and resellers for A123 Systems’ Nanophosphate cell products.

“A123 Energy Solutions has always been focused on high performance, safe and reliable battery systems and will continue to develop new energy storage products under this new brand, which helps to distinguish our activities from the transportation division in Livonia and the technologies division in Waltham,” said Bud Collins, President of A123 Energy Solutions.

A123 Energy Solutions unveiled its new brand at the AWEA Windpower 2013 conference, held in Chicago.

A123 Systems, LLC is the part of A123 that is a wholly owned subsidiary of Wanxiang Group.

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Last week, company co-founder Henrik Fisker told reporters production will begin again “fairly soon.”

He gave no exact date for this, but confirmed recent reports Fisker is in talks with the Chinese buyer of A123 System’s business assets, auto parts giant, Wanxiang Group Co.

“We are negotiating with them,” Henrik Fisker said of Wanxiang and A123 in response to a question about Fisker again receiving batteries.

As for the A123 sale, last month, Wanxiang was approved to purchase most of A123’s assets by the U.S. Committee on Foreign Investment. The federal oversight was deemed necessary due to national security concerns.

Henrik Fisker was also asked but declined to share specifics about the search for new investors.

“We have several interested parties,” he added.

What is known is late last year Fisker hired Evercore Partners Inc. to aid it in its search to find potential investors or partners.

And prior to this, Fisker has done a decent job of raising venture capital, but plays its cards close to its chest, having become a favorite target by certain pundits who link the company with President Obama’s political agenda.

In a recent interview with HybridCars.com, for its part, Fisker said its agenda is the same: To become an American car manufacturer producing extended-range EVs, and the Atlantic is next up on its roster.

The company stopped worked involved in preparing its wholly owned Delaware assembly plant to build the upper mid-level Atlantic, and has long since said its aim is to produce this car in the U.S. and effectively prove naysayers incorrect.

Bloomberg

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According to Reuters, one of the Chinese firms is Wanxiang Group, the company that in December won an auction for bankrupt U.S. lithium-ion battery maker A123 Systems, Fisker’s primary battery supplier.

Fisker spokesman Roger Ormisher told Reuters only that the company is “in advanced talks with a number of potential strategic partners,” with possible developments announced in the next few months. Ormisher abstained from further comment on the matter.

Attempts to seek European funding late last year by Fisker CEO, Tony Posawatz, proved fruitless says Reuters, and so the next step was China. The Chinese government is setting about putting half a million electric vehicles in operation in the next few years, and Chinese automakers are aggressively seeking alternative fuel technologies in an effort to help meet this stated goal.

As for the build stoppage of the Karma, Ormisher told AutoblogGreen that this was the result of Fisker management wanting a new contract with workers at the Valmet plant in Finland – where the Karma is assembled – the timing of which coincided with the bankruptcy of A123 Systems.

“We took the prudent decision to conserve our battery stock, and we already have sufficient supply of Karmas through Q1 of this year,” Ormisher told AutoblogGreen. “By that time we hope to have renegotiated our battery supply with A123′s new owners Wanxiang.”

Reuters, AutoblogGreen

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The Strategic Materials Advisory Council (SMAC) unveiled on Jan. 3 a myths/facts paper on the issue.

The SMAC as well as dozen of Republican and Democratic members of Congress say they are “deeply concerned by the economic and national security implications of the sale to Wanxiang and urge the Committee on Foreign Investment in the United States (CFIUS) to carefully scrutinize the deal.”

As a reminder, on Dec. 11, 2012, Chinese auto parts manufacturer Wanxiang Group Corporation received court approval to acquire a majority of U.S. battery manufacturer A123 Systems.

Navitas Systems, LLC was approved to purchase the defense portion of the company. However, the sale is subject to review by the CFIUS.

Said review is expected to be completed by the end of this month.

The SMAC asserts that A123 Systems’ lithium-ion phosphate technology is far more advanced than other known alternatives and cannot be separated by application or business sector.

In SMAC’s words, “allowing the sale of A123 to Wanxiang poses an imminent national security risk due to the implications of a future U.S. dependence on China for access to U.S.-developed battery technology.”

Comprised of a group of former U.S. government senior officials and industry leading experts, the SMAC was formed with the clear objective of responding to threats to the U.S. industrial base and the critical materials supply chain.

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On Dec. 17, Johnson Controls filed an appeal in bankruptcy court of the Dec. 11, 2012 sale order approving Wanxiang’s purchase of A123 Systems.

As part of the sale order, the court ordered the escrow of the break-up fee and expense reimbursement due to the company under its stalking horse agreement with A123.

Johnson Controls is appealing the sale order to obtain the breakup fee and expense reimbursement to which it is entitled under that agreement and which were previously approved by the bankruptcy court.

“We appreciated the opportunity to serve as stalking horse, which resulted in significant value to the estate, creditors and employees,” said Alex Molinaroli, president, Johnson Controls Power Solutions.

A123 was directed to place the breakup fee and expense reimbursement in escrow after A123′s creditors’ committee suggested to the court that Johnson Controls was lobbying against the sale of A123 to Wanxiang.

“As a market leader and major employer with significant operations in the United States, we have expertise and insights regarding the industries we serve, which are important resources for leaders and decision makers. Our representatives regularly provide educational material and expert opinions on many topics including advanced batteries, lithium-ion technology and the various applications they serve,” said Molinaroli.

Johnson Controls defends itself in saying it maintains an active government relations function that involves regular interaction with policy makers and agencies on the full range of issues relevant to the company. The activities of Johnson Controls’ representatives involving public officials are consistent with First Amendment rights to free speech and are strictly governed by the company’s ethics policy and comply with government regulations.

The significant issue of U.S. regulatory approval required for any sale of A123 to Wanxiang has been a constant challenge dating back to Wanxiang’s original failed attempt to acquire A123 earlier in 2012, prior to bankruptcy.

Johnson Controls says it has consistently maintained that national security questions tied to the core technology used in all of A123′s businesses represent a risk to the sale which cannot be dismissed until resolved by the government review process.

Johnson Controls says it shared and still shares concerns that have been voiced by members of Congress and other interested parties and therefore will continue to monitor this process.

“Should the sale of A123 Systems to Wanxiang not be completed for any reason, Johnson Controls remains open to considering future opportunities to acquire relevant portions of A123′s assets, keeping this critically important technology in the United States, preserving jobs and furthering the purpose of the American Reinvestment and Recovery Act,” said Molinaroli.

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The Court also granted approval for A123 to sell its government business to Navitas Systems.

As previously announced, following Johnson Control’s withdrawal from the auction, A123 and Wanxiang have agreed to terms on an asset purchase agreement through which Wanxiang would acquire substantially all of A123’s assets for $256.6 million. The sale is subject to certain closing conditions, including approval from the Committee for Foreign Investment in the United States (CFIUS).

According to A123, excluded from the asset purchase agreement with Wanxiang is A123’s Ann Arbor, Mich.-based government business, including all U.S. military contracts, which would be acquired for $2.25 million by Navitas Systems through a separate asset purchase agreement.

“Receiving Court approval of our asset purchase agreement with Wanxiang and Navitas is an important step toward finalizing the sale of A123’s assets, and we are now focused on CFIUS approval of the sale to Wanxiang, which we are confident that we will receive given the structure of this transaction,” said Dave Vieau, chief executive officer of A123. “We believe an acquisition by Wanxiang will provide A123 with the financial support necessary to strengthen our competitive position in the global vehicle electrification, grid energy storage and other markets, and we look forward to completing the sale.”

Court documents and additional information can be found at a dedicated Web site administrated by the Company’s Claims Agent, Logan & Company.

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