Fisker Seeks Buyer, Investor or Partner

Fisker Automotive Inc. says it hired investment bank Evercore Partners Inc. in the first half of this year to help it find a buyer or an automaker partner to inject capital and help lower production costs.

The Anaheim, Calif.-based maker of hybrid vehicles has been seeking an investor since the U.S. Dept. of Energy froze its $529 million loan in February.

CEO Tony Posawatz tells The Wall Street Journal that Fisker is in "serious discussions" with a number of potential partners. Posawatz, who was in London for talks, says the search is focused on Europe and China.

The newspaper, citing unidentified sources, reports that the effort could result in the sale of Fisker. The Journal also says the company's board has discussed the possibility of seeking bankruptcy protection.

Fisker has never considered Chapter 11 "in earnest," according to Posawatz. He adds that Evercore, which advised General Motors Co. during bankruptcy, was not hired to do the same for Fisker.

Fisker has had a tough year. It has recalled its Karma extended-range hybrid sedan three times and shed nearly half its staff. The company suspended work on its second model, the Atlantic, when it lost the DOE funds.

Fisker said late last month that it had halted Karma production because it was no longer receiving lithium-ion batteries from bankrupt supplier A123 Systems Inc. The Journal reports that the company stopped assembling the Karma in July to conserve cash.