DOJ Declares Fisker’s Recall Labor Cost Plan Illegal Amid Bankruptcy Proceedings

DOJ Declares Fisker’s Recall Labor Cost Plan Illegal Amid Bankruptcy Proceedings
The U.S. Department of Justice has stated that Fisker’s plan to make EV owners pay for labor costs related to recalls is illegal. This assertion was made in a filing concerning Fisker's bankruptcy case, citing violations of the National Traffic and Motor Vehicle Safety Act. The DOJ's objection is significant as it may impact Fisker's proposed settlement plan, which is set for court review. Fisker had previously announced and reversed its decision to charge owners for recall-related labor costs. The agency argues that all expenses for remedying vehicle defects must be covered by the manufacturer, not consumers.