Luxury EV brand Fisker is in financial trouble and Nissan is reportedly in talks to invest USD 400 million (about Rs 3,315 crore) to help it survive. Fisker recently announced it has paused development of its affordable compact EV, the Pear, having made a loss of USD 463.6 million (about Rs 3,840 crore) during the fourth quarter of 2023.
- Fisker Ocean currently on sale in many markets
- Fisker was in talks with Foxconn earlier
- Fisker Pear, which was to go on sale by late 2025, is now on hold
Fisker actively seeking collaboration
CEO and founder Henrik Fisker added that the company was seeking a collaboration with another car brand to generate cash or reduce costs. He said: “Fisker is in negotiations with a large auto maker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms and North America manufacturing.”
Bloomberg and Reuters have now reported that the manufacturer in question is Nissan, citing anonymous sources familiar with the matter. Reuters added that the talks concern a USD 400 million (about Rs 3,315 crore) cash injection from Nissan, in exchange for access to the platform underpinning the Fisker Alaska pick-up truck. Nissan would also produce the Alaska at one of its US-based factories, alongside its own model built on the same architecture.
Fisker chief financial officer Geeta Gupta-Fisker said on Thursday’s earnings call that continued development of the Alaska depended on a successful tie-up with an unnamed car firm. Henrik Fisker previously said that the “large auto maker” the company was in talks with was not contract manufacturer Foxconn, with which Fisker has previously negotiated with about manufacturing cars in North America together. The negotiation effectively ended Fisker’s relationship with Foxconn, said Henrik Fisker.
The company is currently focusing its remaining cash reserves on ramping up production of the Ocean SUV, which is being built by contract manufacturer Magna Steyr in Austria, as well as rolling out further software updates for the car, he added. It produced 10,193 Oceans and delivered 4,929 across 12 countries in 2023, and expects to deliver between 20,000 and 22,000 in 2024.
“We are not planning to start external expenditure on our next projects until we have a strategic OEM [manufacturer] partnership in place,” said Henrik Fisker.
Work continues on the Fisker Alaska electric pick-up truck, but Gupta-Fisker said its development depends on the successful tie-up with the carmaker. “Any programmes which are beyond the Ocean would only incur expenses if there’s a strategic collaboration,” she said.
Pear prototypes were planned to hit the road later this year, ahead of the first customer cars being handed over at the “very end” of 2025, Fisker said earlier this year.
Also see:
Fisker Ocean electric SUV confirmed for India launch
Nissan lines up five new models for India