Fisker Automotive Inc. has entered a deal to terminate a lawsuit against XL Insurance America Inc. related to the loss of over 300 luxury cars with a value of around $33 million that were damaged in Superstorm Sandy, according to a court filing. Last December, Fisker (the plug-in hybrid automaker that’s looking for a buyer) filed a lawsuit against XL Insurance in New York State Supreme Court.
It sought to get reimbursement for losses as a result of the destruction of 338 Fisker Karma extended-range sedans. The complaint stated that these vehicles were positioned at a plant in Port Newark, N.J., where they were unloaded from ocean vessels and were set to be delivered to U.S. retail dealerships.
Headquartered in Anaheim, Calif., Fisker said that it had informed XL Insurance, a unit of Dublin-based XL Group Plc, about the loss on Nov. 13. Coverage was denied by the insurer on Dec. 20. A stipulation of discontinuance filed today indicated that the two sides had agreed to end the lawsuit. No official reason was given. None of the parties had given any comment.
Fisker Automotive’s Karma is significant not simply because it is the first car to come out of the company but also that it was developed using the company’s principle of Sustainable and Accountable Design. As such, it is expected to be a good example of a big leap forward for the whole auto industry. The company knows that the entire process of making a car takes a lot of energy and makes use of a large amount of resource.
This is not limited to the development stage but includes the actual building and even the marketing and disposal of the vehicles. Fisker has the advantage of being new and thus can start from scratch. What this means is that the company has a better chance of improving the process while getting the opportunity to reimagine what automakers can offer customers.
Fisker Automotive revealed that as an automaker, it wants to be known as one that is committed to accountability and sustainability. This is because the company intends to look for ways to increase efficiency while lowering the effect on the environment for the whole value chain.
That said, it includes issues related to the carbon footprint. According to Fisker Karma, all models to come out of the company will be sold using a network of independent, reputable, and established retailers around the world. This will be the same network that will conduct the servicing. For the U.S. market for example, the company has identified a total of 45 locations.
The same number is expected for the markets in Europe. For the European market in particular, the company said that its retail network will be developed and then managed by different importers. These include Nellemann based in Copenhagen, Denmark, Fisker Italia in Merano, Italy, and Emil Frey Group in Zurich, Switzerland.
There is also BD Otomotive located in Istanbul, Turkey. Fisker will also be having a presence in China in December 2010, as the company inked a non-exclusive distribution agreement with Shanghai-based China Grand Automotive.