Less than a month after filing for Chapter 11 bankruptcy protection, Nikola Motors has received court approval to auction what's perhaps its best asset: the Coolidge, Arizona manufacturing facility where Nikola's battery-electric and hydrogen fuel cell (FCEV) Class 8 semis are produced.
[Related: Nikola Motors, once a Wall Street darling, files for bankruptcy]
Per Bloomberg following a March 7 hearing, the 691,000-square-foot production plant is described by a lawyer representing Nikola's unsecured creditors as a "turn-key" facility that's potentially attractive to companies considering shifting production to the U.S.
Along with the factory, additional Nikola assets will hit the auction block next month, including its hydrogen-electric technology.
The timing of this auction could be ideal for the right buyers with foresight.
Following a couple of weeks of Trump administration threats and declarations of tariffs on neighboring Mexico and Canada, along with China, manufacturers in the auto and commercial vehicle industries are currently highly motivated to have that 'Made in America' stamp. Trump administration recognition of which certainly wouldn't hurt.
“If you are looking for a facility to move your operations stateside, this could be very valuable to you,” the lawyer said during the hearing.
One possible buyer could be Hyundai, which builds the Class 8 XCIENT. Toyota is another legacy OEM in the FCEV business.
[Related: Benore Logistics adding 14 hydrogen Hyundai trucks to fleet]
Bankruptcy Judge Thomas Horan has confirmed he'll approve Nikola's sale process. Nikola has already set a bid deadline of April 3, followed by an April 7 auction if there are competing offers.
A lawyer representing Nikola added during the hearing that potential buyers have already visited the Coolidge plant and the company's Phoenix headquarters. Interested buyers are required to sign nondisclosure agreements.
In the weeks prior to declaring bankruptcy to the tune of about $98 million in debt, Nikola sold its battery assets to Mullen Automotive. Last year, Nikola launched its BEV 2.0 semi, an updated version of the original that was recalled because of battery fire concerns.
[Related: Struggling Nikola sells battery assets to Mullen Automotive]
Not long before Nikola's bankruptcy, competing FCEV semi startup Hyzon Motors also imploded.
[Related: Hyzon Motors CEO resigns, shareholders to dissolve company]
Unlike battery-electric vehicles (BEVs), FCEVs have failed to catch on for commercial and passenger vehicles alike. There have also been some safety concerns and recalls over possible hydrogen tank leaks.
President Trump also expressed concerns about hydrogen fueling at CPAC last month.
