October 9, 2024 – Fisker, the struggling electric vehicle manufacturer, has sparked controversy with a proposal asking owners to bear the labor costs associated with multiple recall-related repairs. However, the U.S. Department of Justice, on behalf of the National Highway Traffic Safety Administration (NHTSA), has stated that such a move would be illegal under federal law.
In mid-September, Fisker revealed that owners would need to cover the labor costs for two recall repairs on the Ocean model. The first issue pertained to faulty door handles, while the second was related to malfunctioning water pumps. Although the company briefly withdrew this decision, it subsequently insisted that owners should share the repair expenses.
The NHTSA has asserted that Fisker’s approach violates the National Traffic and Motor Vehicle Safety Act. This legislation mandates that automobile manufacturers must conduct free repairs on vehicles with safety hazards to protect consumer rights.
It is understood that Fisker attempted to establish a fund to cover the cost of parts required for the recalls, but the fund’s size is limited and does not include labor costs. Furthermore, Fisker proposed that owners might receive partial compensation for labor costs through an owner’s association in the future, although such compensation is not guaranteed.
In a filing submitted to the court, the U.S. Department of Justice pointed out that Fisker’s plan significantly conflicts with the National Traffic and Motor Vehicle Safety Act. The Justice Department requested that the court either modify Fisker’s reorganization plan to comply with the law or reject it altogether. The Justice Department also emphasized that if Fisker continues to violate the Safety Act, the NHTSA has the authority to claim priority over Fisker’s assets.
