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Making customers pay for Fisker vehicles recall repairs is illegal, DOJ says
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Making customers pay for Fisker vehicles recall repairs is illegal, DOJ says
Oct 7, 2024 11:36 AM

Oct 7 (Reuters) - The U.S. Department of Justice said in

a court filing on Monday that bankrupt electric vehicle maker

Fisker's ( FSRNQ ) plan to pass on the costs of vehicle recalls to

customers is illegal.

Fisker ( FSRNQ ) filed for bankruptcy protection in June, with plans

to sell its assets and restructure its debt in an attempt to

salvage operations.

The company has also issued multiple recalls this year to

fix issues related to door handles, faulty software and

noncompliance with safety standards.

As a part of Fisker's ( FSRNQ ) bankruptcy plan, the manufacturer is

required to remedy defective and noncompliant vehicles "without

charge when the vehicle ... is presented for remedy," the filing

showed.

Fisker ( FSRNQ ) did not immediately respond to a Reuters request for

comment.

The Justice Department also said that the part of the plan

where vehicle owners could get reimbursed for paying for repairs

out of their pocket also violates the National Traffic and Motor

Vehicle Safety Act.

Fisker ( FSRNQ ) is also being investigated by the U.S. Securities and

Exchange Commission, which objects the liquidation plan, citing

the lack of clarity on how and whether Fisker ( FSRNQ ) intends to

preserve its corporate records.

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