2012 Fisker Karma Sport on 2040-cars

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Fisker scales back production to divert cash for working capital

Electric-vehicle maker Fisker said on Friday it will scale down production this month and produce fewer cars this year than its previous guidance, to prioritize cash for working capital needs. Shares of the EV maker, which has been struggling with a cash crunch, rose 7% in premarket. "Fisker has made a strategic decision to reduce December production to prioritize liquidity to unlock over $300 million of working capital," the company said. Fisker cut its production target for the year — at least a second time — to just over 10,000 units, compared with its earlier forecast of 13,000 to 17,000. The company said it delivered 123 vehicles on Thursday, adding it plans to accelerates sale and deliveries despite the tough market conditions for EVs. Some EV firms are facing dwindling cash reserves, pressured by high costs related to production ramp-ups and inflation and price cuts by rivals such Tesla. In its most recent financial results, which were filed after a delay due to the departure of its former accounting chief, Fisker reported a loss of $91 million and revenue of $71.8 million for the third quarter, both missing expectations. Green Plants/Manufacturing Fisker Electric

Destino's VL Automotive merges with GreenTech Automotive

Here's a twist to the Fisker/Destino/MyCar stories we didn't see coming. WM Greentech (WMGTA), the company behind the struggling-but-not-dead-yet MyCar, has merged with VL Automotive, the company that plans to take bodies from the Fisker Karma and repurpose them with a V8 engine. That car will now be part of GTA's new WM Destino brand. That latter idea comes, in part, from former Chevy Volt booster Bob Lutz, who founded VL Automotive with Gilbert Villarreal, an automotive engineer and industrialist. Vilarreal will now become chief operating officer of WMGTA. In a statement, available below, Vilarreal said the merger will let WMGTA get busy making the Destino luxury and that, "I truly believe in the production of the GTA MyCar as a practical, electric transportation solution and an affordable fleet vehicle." The Destino, of course, is neither electric nor affordable. It is expected to cost around $180,000. WMGTA thus has two brands. The GTA division will make practical little EVs like the MyCar. The WM division, on the other hand, "manufactures and distributes energy-efficient super sports cars with internal combustion engine." Now tell us, did you see that coming? WM GREENTECH AUTOMOTIVE CORP. MERGES WITH LUXURY SPORTS CAR MANUFACTURER VL AUTOMOTIVE McLean, Virginia – May 5, 2014 - GreenTech Automotive Corp (GTA), a Virginia-based wholly owned subsidiary of WM GreenTech Automotive Corp. (WMGTA), today announced the recent merger of VL Automotive, an innovative luxury sports car manufacturing company based in Detroit, Michigan. VL Automotive will merge with GTA, a wholly owned subsidiary of WMGTA, which also has a wholly owned subsidiary that produces electric vehicles. After the merger, WMGTA now has its global engineering headquarters in Detroit, Michigan, manufacturing in Tunica, Mississippi, and U.S. corporate headquarters in McLean, Virginia. VL Automotive was founded by Robert A. Lutz, former Chairman of General Motors, and Gilbert Villarreal, automotive engineer and industrialist. Villarreal will join GTA's executive team as its Chief Operating Officer. Before joining GTA, Villarreal served in various engineering leadership positions at the United States Marine Corps, the Boeing Company and General Motors. "This merger will enable WMGTA to ramp up production of the Destino luxury sports sedan while strengthening its electric vehicle division. WMGTA has proven its practical business strategy and sensible approach to product development.

Fisker-Foxconn EV partnership 'moving faster than expected'

U.S. electric automaker Fisker expects operating expenses to reach between $490 million and $530 million this year, a slight increase in its business outlook for the year that is driven by R&D spending on prototypes for its Ocean SUV, testing and validation of advanced technology, hiring and its "accelerating" partnership with Foxconn. The company, which reported its second-quarter earnings Thursday after market close, raised its business outlook for expectations for key non-GAAP operating expenses and capital expenditures for the full year up from its previous guidance of $450 million to $510 million. The earnings report pointed to R&D spending on prototype activities in 2021 driven by testing and validation on advanced driver assistance systems, powertrain and user interface. The company also noted an increase in spending on in-house costs, such as virtual validation software tools, hiring and virtual and physical testing to account for recently tightened Euro NCAP and IIHS safety regulations. Co-founder, CFO and COO Geeta Gupta Fisker added during an investor call that the company made a strategic decision to develop internal capabilities to test and validate, instead of relying solely on third parties. Co-founder and CEO Henrik Fisker said in an interview Thursday its partnership with Foxconn, which is "moving faster than expected," also is contributing to an increase in spending. "We were really aligned," Fisker said in an interview Thursday. "I mean it's a very unique business deal because we are both investing into this program; it's not like we just hired Foxconn to make a car." Fisker has two vehicle programs in the works. Its first electric vehicle, the Fisker Ocean SUV, will be assembled by automotive contract manufacturer Magna Steyr in Europe. The start of production is still on track to begin in November 2022, the company reiterated Thursday. Deliveries will begin in Europe and the United States in late 2022, with a plan to reach production capacity of more than 5,000 vehicles per month during 2023. Deliveries to customers in China are also expected to begin in 2023. Fisker Ocean at the track View 6 Photos In May, Fisker signed an agreement with Foxconn, the Taiwanese company that assembles iPhones, to co-develop and manufacture a new electric vehicle.