And it all boiled down to one thing.
Last December, things were looking good for Wiesmann, considering it filed for bankruptcy the previous August. At the time, Wiesmann had reportedly worked out a deal with its creditors to avoid the nasty B-word. It then applied to dismiss its insolvency proceedings. Sadly, however, that doesn't seem to have worked out. Although we have yet to receive an official statement from Wiesmann, there have been credible reports stating that as of March 31, all company operations have stopped.
Everything has closed. The boutique sports car builder once had 125 employees. Now it's just down to six who still show up for work, and even that won't last much longer. So how did Wiesmann find itself in such deep shit financially? It all dates back to 2009 and a case of really, really bad timing. Because sales and customer loyalty were looking quite good, Wiesmann decided it was time to expand its factory and production efforts. Doing so required bank loans and, of course, more customers. But sadly, the economic meltdown took hold and sales went down dramatically.
This subsequently killed the company's capital and it was unable to pay its suppliers or its employees. Although a solution to this problem was attempted, in the end potential investors simply didn't see the automaker as a worthwhile cause. Founded in 1985, Wiesmann built a series of great coupes and roadsters such as the MF4, MF5 GT, and MF3.