1 month ago
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Fisker is looking to secure financial backing amid doubts over its ability to continue operating.
Fisker has decided to temporarily halt production of its Ocean SUV for a duration of six weeks. This step has been taken as the brand is struggling to secure the required financial support, despite the USD 150 million (approximately Rs 1,244 crore) funding received from an existing investor. While the name of the investor is unknown, it seems that Fisker remains engaged in discussions with a prominent carmaker, rumoured to be Nissan, for additional funding.
- Possible USD 400 million investment could be from Nissan
- Total of 1,500 units were delivered between January 1 and March 15
- Current inventory is at 4,700 units, valued at USD 200 million
Fisker’s plan of action
The decision to pause production comes in light of an ongoing negotiation with a major automaker. These negotiations could potentially result in an investment or a strategic partnership for the future operations of Fisker. Reports indicate that Nissan is a leading contender, with talks revolving around a possible USD 400 million (approximately Rs 3,321 crore) investment. Under this proposal, Nissan would gain access to Fisker’s EV platform including the one that underpins the Fisker Alaska.
With the production of the Ocean SUV on hold, Fisker is aiming to realign inventory levels and improve its strategic and financing initiatives. Notably, Fisker disclosed that approximately 1,000 Ocean SUVs were manufactured between January 1 and March 15, with around 1,500 units delivered. Additionally, the brand’s inventory currently holds approximately 4,700 units, valued at over USD 200 million (approximately Rs 1,660 crores).
The Fisker Pear concept.
Fisker's recent decision to suspend development of its affordable compact EV, the Pear hatchback, follows a substantial loss of USD 463.6 million (about Rs 3,855 crore) during the fourth quarter of 2023. The company is directing its remaining cash reserves towards ramping up Ocean production, and implementing software updates for the vehicle.
Additionally, the company had intended to introduce 100 units of the Ocean SUV to the Indian market. This venture has likely been put on hold due to ongoing financial negotiations and production adjustments.
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