After that deal fell apart and was reported Monday, the Wall Street Journal subsequently reported last night a second Chinese bidder, Dongfeng Motor Corp. which had been competing with Geely, also backed away from Fisker.

According to an un-named source speaking to reporters, Geely, which owns Volvo of Sweden, said it won’t bid on Fisker because it looks too risky to get entangled in a company that previously struck deals to provide jobs in Delaware.

When Fisker accepted its initial $529 million Energy Department loan, the provisions of the deal said it must restore capacity on a schedule to be set by the U.S. government.

Originally, Fisker’s government loan was intended to let it assemble its Atlantic plug-in hybrid, and hire 2,500 workers.

Geely’s plans had reportedly included using the former Boxwood Road plant once owned by General Motors in Delaware as a base to also proliferate more Volvos.

Both Dongfeng and Geely, the WSJ reports, essentially wanted Fisker’s assets, but not its obligations to build Fiskers in Delaware, and other requirements it’s still on the hook for.

Presently, the under the federal Advanced Advanced Technology Vehicle Manufacturing loan agreement, if Fisker defaulted or bankrupted, the government would gain essential control of the company. Fisker accepted $192 million from its Energy Department loan before the loan was cut off February 2012.

Fisker Spokesman Russell Datz said the company is “still talking with several parties” while declining to share further details.

AutoNews, WSJ

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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

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