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.