Fisker's Controversial Proposal on Recall Repair Costs Challenged by DOJ

TapTechNews October 9th news, the bankrupt American electric vehicle manufacturer Fisker has proposed a controversial proposal, asking vehicle owners to bear the labor costs of multiple recall-related repairs. However, the US Department of Justice on behalf of the National Highway Traffic Safety Administration (NHTSA) stated that doing so is illegal according to federal law.

Fisker disclosed in mid-September that vehicle owners need to pay for the labor costs in two recall repairs for the Ocean model. The first is related to the faulty door handle, and the second is related to the faulty water pump. Although the company once revoked this decision, it later insisted that vehicle owners share the repair costs.

NHTSA said that this practice of Fisker violates the National Traffic and Motor Vehicle Safety Act. The act stipulates that automakers must repair vehicles with potential safety hazards for free to protect the rights and interests of consumers.

According to TapTechNews's understanding, Fisker tries to set up a fund to pay for the parts costs required for the recall, but the scale of this fund is limited and does not include labor costs. In addition, Fisker also proposed that vehicle owners may obtain partial compensation for labor costs through the vehicle owner association in the future, but this compensation is not guaranteed.

The US Department of Justice pointed out in the documents submitted to the court that Fisker's plan has a serious conflict with the National Traffic and Motor Vehicle Safety Act. The Department of Justice requires the court either to modify Fisker's reorganization plan to make it comply with the law or to directly reject the plan. The Department of Justice also emphasized that if Fisker continues to violate the Safety Act, NHTSA has the right to claim priority over Fisker's property.