Fisker walks back plans to charge drivers for recall costs

Fisker appears to have walked back its plan to charge owners for recall labor costs roughly two days after first informing customers of the change through its website.

Driving the news: On Sunday, the now-bankrupt electric vehicle startup told owners, via a new Frequently Asked Questions (FAQ) page, that they would be on the hook for labor costs associated with vehicle recalls.

• Although Fisker said it would still provide replacement parts at no additional cost, it warned customers that, due to its recent bankruptcy, “labor costs associated with the inspection and repair process will need to be covered by you, the vehicle owner.”

• Following brief but intense pushback, the EV brand updated the FAQ page on Tuesday. The website now reads: “Regarding the recalls that require physical inspections and potential repairs, Fisker will provide the necessary parts (including the labor) at no cost to you.”

• Fisker currently has five listed recalls in effect for the ill-fated Ocean SUV. Three of these can be fixed by (free) over-the-air updates, but the other two, which involve a door handle and an interior water pump, require assistance from an authorized repair center.

Zooming in: Such repairs are virtually always covered by the car manufacturer due to laws governing consumer rights in the event of a recall. But even though Fisker may be legally required to assist owners, it isn’t clear how it plans to make this happen.

• For those unfamiliar with the story, Fisker is an EV brand founded by luxury car designer Henrik Fisker. The company’s first and only vehicle, the Ocean SUV, sold several thousand units between 2023 and 2024.

• Earlier this year, the EV maker informed shareholders it was severely strapped for cash and might not make it to the end of 2024, although it suggested it may be able to avoid bankruptcy if it could form a partnership with another manufacturer.

• Those plans fell through, prompting the brand to declare bankruptcy this June. Since then, it has garnered some funds through the sale of leftover units to American Lease, who paid a steeply discounted price from the Ocean’s starting rate of $41,437.

Bottom line: It remains unclear how Fisker will cover the costs of recalls, even for the small pool of buyers it garnered over its short lifespan. That said, it might not take long to find out: the company’s FAQ page says it expects parts to be available at authorized service providers by the end of this month.

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