Amid Fisker's financial challenges, talks have commenced between Nissan and the luxury electric vehicle (EV) manufacturer regarding a potential $400 million investment (approximately Rs 3,315 crore) in the EV market. Fisker reported a loss of $463.6 million in the fourth quarter of 2023, equivalent to roughly Rs 3,840 crore, leading to the discontinuation of the Pear project, an affordable small electric vehicle.
Henrik Fisker, CEO and founder of Fisker, disclosed the company's efforts to seek collaboration with another car brand to alleviate financial strains. He stated, “Fisker is negotiating with a large automaker for a potential transaction, which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North American manufacturing.”
Reports from Bloomberg and Reuters indicate that Nissan is the manufacturer in the discussion, as confirmed by anonymous sources familiar with the matter. Reuters elaborated that the talks involve a proposed $400 million cash infusion from Nissan, granting access to the platform underlying the Fisker Alaska pickup truck. Additionally, Nissan would undertake production of the Alaska at one of its US-based factories, alongside its model built on the same architecture.
Geeta Gupta-Fisker, chief financial officer of Fisker, emphasised during Thursday's earnings call that the progression of the Alaska project relies on the success of the collaboration with the undisclosed car firm. Henrik clarified that the potential partner was not a contract manufacturer of Foxconn, effectively concluding Fisker's association with Foxconn.
Currently, Fisker is directing its remaining cash reserves towards expanding production of the Ocean SUV, manufactured by Magna Steyr in Austria, and implementing software updates for the vehicle. The company delivered 4,929 Ocean SUVs across 12 countries in 2023 and anticipates delivering between 20,000 and 22,000 units in 2024.
Henrik emphasized, “We are not planning to start external expenditure on our next projects until we have a strategic OEM [manufacturer] partnership in place." Development of the Pear prototypes is scheduled to commence later this year, with the first customer deliveries projected for the “very end” of 2025, as previously outlined by Fisker.
While work on the Fisker Alaska electric pickup truck continues, Geeta emphasized that its progress hinges on the successful partnership with the undisclosed carmaker. “Any programs beyond the Ocean would incur expenses if there's a strategic collaboration," she remarked.
The potential investment from Nissan represents a significant development in Fisker's ongoing efforts to stabilize its financial position and advance its EV lineup.
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