Reading view

There are new articles available, click to refresh the page.

NHTSA Closes Fisker Investigation After Rollaway Recall Issued

  • Fisker issued a recall for 7,745 Ocean SUVs from the 2023 and 2024 model years to address the rollaway risk.
  • A software flaw prevents the vehicle from engaging park at low speeds, shifting it into neutral instead.
  • The recall includes a software update that adds automatic park engagement and an Auto Vehicle Hold function to enhance safety.

Henrik Fisker’s attempts to establish his own car companies have ended in complete failure. Twice, he has launched his own car company, and twice, those ventures have ended in collapse. Earlier this year, Fisker filed for bankruptcy while attempting to deliver the all-electric Ocean SUV. The fallout has left owners stuck with vehicles that have not only depreciated significantly but are also riddled with a host of frustrating issues.

The most recent—and perhaps most troubling—issue concerned the risk of unexpected rollaway. In early February, the National Highway Traffic Safety Administration’s (NHTSA) Office of Defects Investigation (ODI) began investigating unintended vehicle movement in 2023 model-year Fisker Oceans.

Read: Fisker’s Bankruptcy Plan Approved, Owners Won’t Have To Pay For Recall Repairs

The ODI discovered that impacted vehicles contain a logic that prevents the engagement of the park gear when the park gear request is made while the vehicle is moving at low speeds. Put more simply, if a driver tries to turn on the parking brake while the EV is moving, it’ll reject the request and shift into neutral. According to the safety agency, there’s a risk that drivers may not realize the parking brake hasn’t been switched on, and there’s a chance the Ocean could roll away if just left in neutral.

News of the investigation first emerged late last month. On November 15, Fisker issued a recall covering 7,745 Oceans from the 2023 and 2024 model years to address the problem. Following the issuance of this recall, the ODI has been able to close its investigation.

 NHTSA Closes Fisker Investigation After Rollaway Recall Issued

As part of the software update, the Fisker Ocean will automatically slow to a stop if the driver unlatches their seatbelt while traveling at low speeds. Once stopped, the SUV will automatically switch into park gear and enable the parking brake. Fisker has also introduced an Auto Vehicle Hold function, which will hold the SUV in place even after the driver removes their foot from the brake pedal. This is a standard feature on most cars, and, oddly, the Ocean didn’t have it until the introduction of OS 2.0.

Fisker has been forced to launch several other recalls for the Ocean this year, including due to a sudden loss of drive power, an unprompted reduction in regenerative braking, malfunctioning warning lights, and outer door handles that can stick and fail to open.

 NHTSA Closes Fisker Investigation After Rollaway Recall Issued

Fisker Ocean Keeps Adding Recalls Like It’s Trying To Win A Contest Against Ford

  • Fisker Ocean’s transmission recall reveals a safety risk that could lead to rollaways.
  • Vehicle rollaway accidents injure 1,900 people annually, making this recall a critical fix.
  • Five other recalls for the Ocean were issued this year, while the company filed for bankruptcy.

Fisker may have gone bankrupt, but its products are still out there, keeping their owners on their toes. The latest twist? Yet another recall for the all-electric Ocean SUV, this time targeting 7,745 vehicles. While Ocean owners might be experiencing a strong sense of déjà vu, this isn’t just another footnote, it’s a serious safety concern that can’t be ignored.

While the recall was only recently published by the NHTSA, Fisker has known about the issue for quite some time and first introduced an over-the-air software update to rectify it back in March. However, it’s clear that not every owner may have been aware of this fix. If you’re one of them, consider this your gentle nudge: check your vehicle for the latest update.

Read: Fisker Wants Owners To Pay Recall Labor, DOJ Says No Way

At the core of the recall is a fault in the transmission that may prevent the vehicle from shifting into the selected gear. As a result, the SUV could to roll away while in Drive or Reverse. According to the NHTSA’s National Center of Statistics and Analysis, vehicle rollaways lead to an average of 144 deaths and approximately 1,900 injuries annually in the United States. For something as seemingly minor as a software glitch, the implications are anything but trivial.

A Troubled Year for Fisker

This latest recall is just the tip of the iceberg for Fisker, which spent much of 2024 firefighting one issue after another. The company, already grappling with financial woes that culminated in bankruptcy, has issued no fewer than five recalls for the Ocean this year alone. Among them are defects involving a sudden loss of drive power, malfunctioning warning lights, and an unprompted reduction in regenerative braking—none of which inspire confidence for current or prospective owners.

 Fisker Ocean Keeps Adding Recalls Like It’s Trying To Win A Contest Against Ford

Other recalls have focused on more mechanical problems, such as outer door handles that stick and fail to open, and a water pump prone to failure, potentially causing a total loss of drive power. If the Ocean was meant to make waves, these issues are definitely not the kind Fisker had in mind.

Earlier this year, Fisker added insult to injury when it announced that owners would have to cover labor costs for certain recalls, including the door handle and water pump fixes. Unsurprisingly, the U.S. Department of Justice (DOJ) intervened, pointing out that this move would be illegal. As part of its bankruptcy restructuring plan, Fisker has since committed to covering all recall-related costs—a small but critical concession to owners already feeling the brunt of these missteps.

 Fisker Ocean Keeps Adding Recalls Like It’s Trying To Win A Contest Against Ford

Fisker’s Bankruptcy Plan Approved, Owners Won’t Have To Pay For Recall Repairs

  • The car manufacturer has yet to sell its Austria-based assets or its intellectual property.
  • A New York-based leasing company will buy the carmaker’s remaining inventory of Ocean SUVs.
  • The Fisker Owners Association says it’s happy with the outcome.

A court in Wilmington, Delaware, has approved Fisker’s bankruptcy liquidation plan, although it was only given the thumbs up by a judge after some last-minute negotiations.

A key part of the liquidation will see Fisker sell approximately 3,000 Ocean SUVs in its inventory to American Lease, a company based in New York that leases Uber and Lyft vehicles. The firm will pay $46.25 million for the vehicles. However, in order to be able to transfer essential data and support services to new servers, American Lease has agreed to pay an extra $2.5 million over five years for future tech support services.

Read: Fisker Left Their HQ Full Of Prototypes And Hazardous Junk

Fisker held a series of meetings with its creditors and owners to finalize the agreement over the past week. Judge Thomas Horan approved the plan despite the defunct carmaker facing a Securities and Exchange Commission investigation into possible securities violations before it filed for bankruptcy. Henrik Fisker and his wife, Geeta Gupta-Fisker, who served as the brand’s chief financial and operating officer, are also facing multiple lawsuits from shareholders.

Fisker has also agreed to cover all the costs of two ongoing recalls, shortly after the U.S. Department of Justice said Fisker’s plan to force owners to pay for the labor costs involved in recall repairs was illegal.

 Fisker’s Bankruptcy Plan Approved, Owners Won’t Have To Pay For Recall Repairs

“We’re happy with the outcome today, and we’re optimistic about the future,” said Brandon Jones, president of the Fisker Owners Association. “There’s still some discussion and negotiation needed, but we’ll have the services we need to maintain our cars.”

Fisker still needs to sell its assets in Austria and can also sell its intellectual property, including its vehicle designs and software code. The proceeds from these sales will go into a trust, most of which will be paid to Fisker’s secured creditor, CVI Investments, and its investment manager, Heights Capital Management, the Los Angeles Times reports.

 Fisker’s Bankruptcy Plan Approved, Owners Won’t Have To Pay For Recall Repairs

Fisker Wants Owners To Pay Recall Labor, DOJ Says No Way

  • The U.S. Department of Justice states that Fisker’s plan to charge owners for recall labor costs violates federal law.
  • As part of Fisker’s bankruptcy proceedings, the company aims to limit recall parts expenses to $750,000.
  • The National Traffic and Motor Vehicle Safety Act mandates that manufacturers cover all costs for defective vehicles.

Bankrupt electric automaker Fisker has put forward a controversial proposal to force owners to shoulder labor costs for several recall-related repairs. However, the U.S. Department of Justice, speaking 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 pay for labor costs related to two ongoing recalls for the Ocean. The first is related to faulty door handles, and the second is for a faulty water pump which can trigger a loss of power. The EV startup briefly reversed this decision but then did another 180, confirming that owners would indeed need to pay.

According to the NHTSA, this is forbidden by the National Traffic and Motor Vehicle Safety Act, which all car manufacturers must comply with.

Read: Fisker Flip Flops Again, Requires Owners To Pay For Recall Repairs, But Feds Beg To Differ

Under this act, manufacturers must remedy all vehicle defects or areas of noncompliance without charge to the customer. Fisker’s liquidation plan wants to establish a fund to pay for recall-related parts, but only if such recalls don’t cost more than $750,000 in parts.

It also specifically states that vehicle owners must cover labor expenses and may only be reimbursed at a later date through the Fisker Owners Association, which could receive funds in future litigation against Fisker’s parts suppliers. There are no guarantees, however, that these funds will be recovered and owners will be reimbursed.

The US Department of Justice filed its objection to the plan in the United States Bankruptcy Court for the District of Delaware, stating that “The Safety Act is clear that all costs associated with remedying defective and noncompliant vehicles must be covered by the manufacturer; the Act makes no distinction between parts and labor.” The NHTSA adds that it “may have a priority claim against the Estate” of Fisker if it fails to comply with the Safety Act.

 Fisker Wants Owners To Pay Recall Labor, DOJ Says No Way

“The United States requests the Amended DS and Plan either be revised so that it complies with the Safety Act, or otherwise rejected; (2) the Plan’s confirmation order includes language preserving the United States’ federal interests; and (3) any and further relief as the Court deems necessary and just,” the court filing adds.

As of now, Fisker has not yet responded to the Department of Justice’s objection to its recall plan.

 Fisker Wants Owners To Pay Recall Labor, DOJ Says No Way
❌