China carmaker Dongfeng drops bid for Fisker stake: Sources
BEIJING/DETROIT (REUTERS) - Chinese state-owned carmaker Dongfeng Motor Group will not pursue a bid for a majority stake in Fisker Automotive, according to sources familiar with the matter, leaving the troubled US electric car without a clear financial backer.
Dongfeng was put off by Fisker's loan obligations to the US government which include restoring capacity and jobs at the firm's Delaware plant, said the sources who declined to be named due to the confidential nature of the matter.
These conditions, which also deterred Chinese automaker Zhejiang Geely Holding Group from bidding for the US company, make it impossible for Dongfeng to move the production of Fisker's products to China, the sources added.
"In the end, what mattered to Dongfeng was being able to produce Fisker cars in China," said one of the sources. "It became apparent over time that could not have been done with this deal."