Bricks on Wheels? Not so fast! Fisker EV Owners Notch Win With Bankruptcy Deal
Bricks on Wheels? Not so fast! Fisker EV Owners Notch Win With Bankruptcy Deal
Swirling questions surrounding support for Fisker EVs were resolved in a bankruptcy agreement, a big win for EV owners. Also: firms mods give old Teslas a new life.
If you were one of the thousands of Americans who purchased a Fisker Ocean electric SUV in the last year, the past few months have been unnerving in a way that few other vehicle owners in the U.S. can relate to - with the possible exception of some gray haired (deceased?) DeLorean Motor buyers from the early 1980s.
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How the REPAIR Act will lower car ownership costs
PIRG: exoskeleton story highlights medical device risks
In Canada: auto care industry goes to bat for right to repair laws
Photojournalism problem exposes e-waste epidemic
Opinion: New Zealand's isolation makes a right to repair critical
Got a repair complaint? Tell us about it!Fisker: From Darling to Debtor
That’s because the up and coming EV maker you bought your new SUV from - like DeLorean before it - traced an Icarus-like path over the last two years: from a celebrated, ambitious automotive start up with more than $1 billion in startup capital to a struggling, cash strapped also-ran pushing steep price cuts in a desperate attempt to sell more cars, then - in short order - squirming under the thumb of its creditors, filing for bankruptcy in June, abandoning its corporate headquarters and wilting under the scrutiny of an SEC investigation.
Unlike the steel-encased DeLoreans of the early 80s, however, Fisker’s impending demise raised serious questions about the ability of roughly 5,000 Fisker owners in the U.S. to continue operating their cars after the manufacturer folded.
That’s because Fisker’s vehicles rely heavily on software and cloud based services to support their operation, maintenance and upkeep. As with other late model, connected cars: Fisker owned and operated cloud infrastructure that powered mobile apps used to control critical vehicle functions, to distribute software updates to its vehicles and manage maintenance and operation data needed for vehicle servicing. As with other automakers, the company required repair technicians to have access to its proprietary software to diagnose and complete regular service, maintenance and many repairs.
Fisker owners have already registered problems with vents, hoods and other features on the new vehicles.
It puts the software in the basket!
The sudden demise of the firm threw access to the software and services into question. Specifically, last week, Fisker informed American Lease, the company that was in the process of buying its assets, that it would not be able to move (or “port”) software to manage its vehicle fleet from its servers to those owned by American Lease. In a court filing, American Lease said that the inability to get access to that software would put the entire purchase of Fisker, which was approved in July, into doubt.
“The fundamental failure and inability of Debtors (Fisker) to effect the Porting of the Purchased Vehicles frustrates a primary purpose underlying the Purchase Agreement and denies Buyer (American Lease) … the ability to operate the purchased vehicles as contemplated.“
Should the deal have collapsed, Fisker would have lost access to a critical supply of tens of millions of dollars needed to wind down its business. And that may have resulted in it shutting down the servers that maintenance professionals and vehicle owners rely on, crippling the cars.
When bankruptcy brings smiles (of relief)
In its filing, American Lease asked for a delay in bankruptcy proceedings to investigate Fisker’s claims. However, that delay was short lived. By Friday, the LA Times was reporting that the bankruptcy had been approved by a federal judge, and that a deal had been reached regarding access to the Fisker software updates. Specifically: “Access to those updates will be provided by American Lease, a Bronx, N.Y., business that leases Uber and Lyft cars. It bid $46.25 million for Fisker’s unsold inventory of more than 3,000 cars. American Lease agreed late this week to pay $2.5 million for access to the cloud for five years and will share that access with Fisker’s more than 6,000 car owners for an undetermined price.”
Brandon Jones, the president of the newly formed Fisker Owners Association, was quoted as saying “we’re happy with the outcome today, and we’re optimistic about the future. There’s still some discussion and negotiation needed, but we’ll have the services we need to maintain our cars.”
The agreement giving owners equal access to the Fisker software (we’ll be looking deeper into this), as well as the grassroots efforts of Fisker owners to organize and forge an independent path forward, including developing “hacks and mods” for their cars could be seen as a template for other vehicle owners or - in fact - any owner of a bricked and abandoned smart, connected device. In other words: pay attention to the Fisker story. It’s going to get interesting!
😠 Got a repair complaint? Tell us about it!
Do you have a complaint about a manufacturer who is blocking your effort to repair your product? The Repair Coalition wants to hear about it! Use the link below to talk about the repair obstacles you’ve encountered.
Other News
AirPods and Apple Watch receive poor repair scores
With new Apple tech out, iFixit has released a number of teardowns grading the repairability of new devices. The AirPods 4, which received a 0/10 need to be heated to over 100 degrees to separate the device in two, which is the precursor to any repair. Functional repair for your average person is unlikely. That said, the AirPod Max, Apple's over the ear headphones are "bordering on repairable" according to iFixit with a 6/10 mainly due to their simpler disassembly. For the Apple Watch Series 10, which received a 3/10 is frustrating, the device is very difficult to open but sports an easier to replace than the AirPods—but that's not saying much.
“Right to repair is huge!” A profile of Rich Rebuilds
The website Insidehook is celebrating YouTube’s 20th birthday by profiling prominent YouTubers. The subject of their latest post: Tesla repair expert and right to repair advocate Rich Benoit of Rich Rebuilds, who talks about his evolution from a Tesla repair hobbyist in 2016 to a full time YouTube influencer and right to repair advocate. In the article, Benoit says when asked about the influence of his channel, which currently has almost 1.5 million subscribers. “A lot of Tesla’s policies over the years have changed significantly because of the push I was making in the beginning.”
Tesla originally refused to sell him parts to fix his car himself and looked down on DIY repairs. That turned Benoit into a leading figure in the fight for “right to repair” laws for cars, which seek to change automaker policies that restrict the ability of owners to fix their own vehicles.
“Right to repair is huge. That was the thing I’ve been pushing for for the past eight years,” he says. “And it’s made huge progress. Tesla allows pretty much everything now. You can buy parts. You can service the vehicles yourself. They have online portals where you can do self-service. So they’ve changed a lot as a company because of the push that I was making in the beginning — causing a big stink.”
Born again! Firm offers second hand Teslas a new life
A few years ago, the Tesla Model 3 might not have been in daily driver consideration for most enthusiasts. Now, though? A cheap second-hand Tesla is gaining the attention of enthusiasts who are modding the vehicles - like boosting power to 150 horsepower. The Autopian profiles Quebec-based Ingenext, an EV conversion provider that offers plug-and-play controllers for Tesla Model 3 and Y, providing significant power boosts and additional features. With modules ranging from $795 to $1,495, Ingenext offers Tesla owners the ability to boost horsepower and add features like drift mode, off-road mode and manual battery heating. Features are controlled through a smartphone app, and Ingenext offers modified updates to bypass Tesla’s detection of aftermarket modules. As Tesla vehicles depreciate, aftermarket tuning solutions like those from Ingenext are making modified second-hand EVs an exciting prospect for enthusiasts.
Green Century president talks ‘right to repair’s’ appeal to NextGen investors
Green Century Funds President Leslie Samuelrich did an interview with the folks at equities.com. Green Century is the only U.S. mutual fund company owned by environmental nonprofits, with 100% of profits reinvested in environmental advocacy. The mutual fund’s goal is to help investors align their portfolios with their values, while also advocating for corporate environmental change.
Samuelrich said that Green Century secured 26 policy changes in a year, including convincing Microsoft to extend security updates, preventing 400 million computers from becoming e-waste. Younger investors increasingly expect companies to be sustainable and are pushing for investments that make a positive impact, she said.
How the REPAIR Act will lower car ownership costs
An opinion piece over at Bankrate.com makes the case for passage of the federal REPAIR Act - right to repair legislation for automobiles. Modern vehicles rely heavily on tech, requiring increased access to vehicle data, repair instructions, and specialized tools, but automakers are restricting access to essential repair data, leading to a less competitive marketplace and higher costs for consumers and repair shops. The Lack of repair information forces repair shops to either pay for data or send customers to more expensive options, driving up costs. With access to vehicle data a major issue for independent repair shops, even though consumers prefer these businesses. Restricted data access also undermines vehicle ownership and affordability. The federal REPAIR and SMART Acts (H.R. 1707) are gaining bipartisan support to protect consumer rights and restore repair choice, though the bills are currently stalled in Congress.
PIRG: Exoskeleton story highlights risks to patients
The recent news (including here at Fight to Repair) about the paralyzed jockey struggling to get a manufacturer to service his $100,000 exoskeleton. In a new report, PIRG has connected the dots between what happened to former jockey Michael Straight and the larger problem of medical devices that lack long-term support, leaving users stranded when companies close or stop offering repairs. Firms should offer proper repair support and documentation to prevent user hardships, even when they no longer support older products, PIRG argues.
In Canada, auto care industry supports right to repair bills
Members of Canada’s leading aftermarket auto parts and repair group, the Automotive Industries Association of Canada (AIA Canada) appeared before Canada’s parliament to testify in support of two right to repair bills C-244 and C-294. Both bills propose amendments to Canada’s Copyright Act: Bill C-244 allowing consumers to bypass digital locks to repair and maintain products and Bill C-294 ensuring one system and device can operate and repair between different technologies without infringing on copyright laws.
“It is critical that vehicle owners have a choice when it comes to where they get their vehicle repaired and serviced, said AIA President and Chief Executive Officer, Jean-François Champagne at the hearing. “But this choice could soon disappear if they don’t have access to their vehicle data. By putting legislation in place, we are helping ensure that auto care businesses remain competitive and continue to serve as the primary provider of essential repair, service and parts to Canadians.” said Champagne.
The AIA is also seeking stand-alone legislation, akin to the REPAIR Act now sitting (stalled) in the U.S. Congress: standalone legislation that would affirm that vehicle data belongs to the consumer, granting them full control over where they choose to have their vehicle serviced or repaired, the AIA said.
Photojournalism project exposes e-waste
A project called, E-Waste in Ghana: Tracing Transboundary Flows, is showing the violent impacts of the e-waste dumped from high income nations on the shores of Ghana. Regulations in Ghana only allow for the importation of fixable tech, but more often there are shipments with totally unfixable waste that will need to be sorted through for the valuable (and often toxic) minerals inside them. Workers are exposed to serious health risks in exchange for as much as $60 and oftentimes having families relying on their income from waste sorting and retreival. And while NPR reports on the project’s highlights of the money that workers can make supporting their families—one might wonder why we are okay with a system where someone needs to risk their life to make ends meet?
New Zealand lawmakers eye right to repair legislation
Increasingly, products are designed to break or become obsolete sooner, leading to more sales for manufacturers and higher costs for consumers. That’s especially difficult in a country like New Zealand - an island nation at the far corner of the planet, writes Tom Powell, a climate activist. “Many of us have observed that fixing things has been getting a lot harder of late. Parts are no longer available or are offered at an exorbitant price. It is increasing common to run into people who have had to give up a car in its midlife because a replacement engine or gearbox could not be found.” Pace is urging lawmakers to pass right to repair legislation that would “allow consumers to fix products more easily, benefiting both their wallets and the environment by reducing waste and emissions.” As climate change disrupts global supply chains, increasing self-sufficiency in New Zealand through repairability becomes crucial for resilience. And, with rising trade barriers and geopolitical tensions, Kiwis need to regain a degree of independence, just like in the past.