China's state owned carmaker Dongfeng Motor Group has formally announced that it would not be pursuing a bid for a majority stake in Fisker Automotive. According to sources familiar with the transaction, the withdrawal was made and it has left the US electric car maker without any options for a strategic partner.
One of the reasons for the withdrawal was the pending loan obligations of Fisker with the US Department of Energy, such as restoration of capacity and continued employment in the company's plant in Delaware. This is also one of the conditions that put off the bid of Zheijang Geely Holdings Group from continuing its bid for the company. This specific provision would disallow moving the production of Fisker vehicles to China.
According to one of the sources who spoke on condition of anonymity, "In the end, what mattered to Dongfeng was being able to produce Fisker cars in China. It became apparent over time that could not have done with this deal."
Fisker Automotive spokesman Roger Ormisher declined to make any commment. Dongfeng did not immediately provide a comment to an emailed request for one.
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