2023 Fisker Ocean One on 2040-cars

Auto blog

Fisker signs deal with Foxconn to build EVs in U.S. in 2023

Henrik Fisker (Reuters)   DETROIT — Electric car maker Fisker has finalized its vehicle-assembly deal with Foxconn Technology Co Ltd, including plans to open a U.S. plant in 2023, the companies said on Thursday. The plant's location has not been identified, but Fisker Chief Executive Henrik Fisker said four states are under consideration, including Foxconn's plant site in Wisconsin. Foxconn Chairman Liu Young-way previously said electric vehicles (EVs) have a "promising future" in Wisconsin but did not elaborate. The annual capacity for the U.S. plant will be at least 150,000 vehicles to start, Fisker said. "When you look back at recent history and new technology products, they have been launched in the U.S. first," Fisker said in an interview. "That's why we want to launch here." He expects the U.S. market initially to be the biggest for the vehicle. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Fisker also cited access to Foxconn's supply chain, including semiconductor chips, as an advantage of the partnership. Fisker is one of a handful of EV startups that have gone public through a reverse merger with a special-purpose acquisition company (SPAC) at a time when U.S. President Joe Biden has called for $174 billion in new spending to boost EVs and charging. Under the Fisker deal, the companies will jointly invest in "Project PEAR" (Personal Electric Automotive Revolution) and share in any profit. The companies reaffirmed Foxconn will eventually build more than 250,000 vehicles a year for Fisker across multiple sites, with initial production beginning at its U.S. plant in late 2023 which it announced in February. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. "We have world-class supply chains in place to support Project PEAR — in particular, securing the reliable delivery of chipsets and semiconductors," Liu said in a statement. The vehicle type has not been identified by Fisker, but will be based on a new lightweight platform — FP28 — designed by both companies. The five-passenger vehicle, which will be sold globally and is the second model under development, will have a starting price below $30,000 before incentives. Fisker said the vehicle would be described by some as a crossover. Terms of the deal, which runs seven years, were not disclosed.

Fisker stops production, warns it may need to seek bankruptcy

Fisker Inc. is pausing production for the next six weeks as the electric-vehicle maker looks to rein in inventory and avoid possibly having to file for bankruptcy. The company didn’t make a required interest payment of about $8.4 million last week on its unsecured convertible notes due in 2026, according to a regulatory filing Monday. Fisker warned it may not be able to meet obligations to service its debt and “could need to seek protection under applicable bankruptcy laws.” Fisker shares fell as much as 14% shortly after the start of regular trading. The stock had plummeted 90% this year through last weekÂ’s close. Fisker also said Monday that it plans to raise as much as $150 million through a financing deal with the holder of its 2025-dated convertible notes. The Los Angeles-based EV maker didnÂ’t identify the existing investor and said the funding will be organized in four tranches and subject to certain conditions. The disclosures expound on the dire state of Fisker, which warned late last month that there was substantial doubt about its ability to stay in business. The company has said it will cut 15% of its workforce after struggling with production issues, software glitches and short-seller criticism. Fisker said it remains in negotiations with an unidentified large automaker about a potential investment and joint development partnership. Bloomberg reported earlier this month that the company was in talks with JapanÂ’s Nissan Motor Co., citing people familiar with the matter. In its statement, Fisker said it has about 4,700 vehicles in inventory worth more than $200 million. ItÂ’s pausing production in Graz, Austria, starting this week to sell down its supply of already-built EVs.   Earnings/Financials Plants/Manufacturing Fisker

U.S. opens another probe into Fisker's cars, over brake issue

  The National Highway Traffic Safety Administration on Friday opened a preliminary probe into 6,813 Fisker Ocean SUVs built in 2023, after complaints that the automatic emergency braking system used in the electric vehicles had activated inadvertently. The regulator said its Office of Defects Investigation has received eight complaints alleging activation of the braking system without an apparent roadway obstruction in the vehicle's forward path, resulting in sudden vehicle deceleration. Three of the complaints alleged an injury, the safety agency said. NHTSA's preliminary evaluation will look into the scope and severity of the potential problem to assess its impact on safety. The regulator could close the investigation into Fisker without taking any potential action. The probe adds to Fisker's woes as its Ocean SUVs were already under investigation by the NHTSA for three prior incidents. Last month, the safety regulator received complaints that the doors of the company's EVs sometimes failed to open. Fisker had flagged "going concern" doubts in February, followed by delisting of its stock from the New York Stock exchange and the collapse of talks with a large automaker for a potential deal in March. The startup had said in April it failed to make an interest payment of about $8.4 million on some notes due in 2026 during a 30-day grace period. The cash-strapped firm initiated insolvency proceedings for its Austrian unit on Tuesday, as it looks for strategic options to raise money to meet its debt obligations.