Making customers pay for Fisker vehicles recall repairs is illegal, says DOJ

admin admin | 10-08 16:30

Making customers pay for Fisker vehicles recall repairs is illegal, says DOJ
The U.S. Department of Justice said in a court filing on Monday that bankrupt electric vehicle maker Fisker's plan to pass on the costs of vehicle recalls to customers is illegal.

Fisker 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 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 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 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 intends to preserve its corporate records.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.


ALSO READ

Ola Electric responds to ARAI notice, says prices of S1 X 2 kWh scooter unchanged

Ola Electric provided an invoice dated October 6, showing a INR 5,000 discount given to customers, a...

Hyundai Motor IPO’s off to a slow start

Around 35% of the total shares in the offering are reserved for retail investors, while QIBs and NII...

Under fire, Ola Electric taps EY India to get back on track

Close to a dozen executives from EY came on-board at Ola Electric a few weeks ago on deputation for ...

Tata Motors secures 5-star BNCAP safety ratings for Nexon, Curvv, and EV models in latest crash tests

Tata Curvv.EV BNCAP testTata Motors did it again! Tata Motors has once again secured 5 star rating i...

India needs to step up manufacturing to meet Viksit Bharat goal: Volvo Grp India MD

Volvo Group India Managing Director and President, Kamal Bali. The manufacturing sector is a weak li...

Dollar pullback to help Indian rupee, weak risk appetite to weigh

Investors are now nearly certain that the U.S. Federal Reserve will deliver a 25-basis-point rate cu...