Magna International builds the Ocean and says that not only has production idled, it’s not expected to restart.
Key Takeaways
- Fisker Ocean production is not expected to restart, dealing a significant blow to Magna International’s bottom line.
- Magna had originally planned to produce 120,000 Fisker Oceans annually.
- This is yet another in the long list of problems Fisker has faced over the past few months as it runs out of cash and scrambles to survive.
The news for Fisker continues to get worse. This time, it’s an earnings call held by Magna International, which is the company contracted to build the Ocean electric vehicle.
2024 Fisker Ocean
- Base MSRP
-
$38,999
- Engine
-
Electric
- Horsepower
-
282 hp
- Torque
-
285 lb-ft
- Top Speed
-
128 mph
- 0-60 MPH
-
3.7 seconds
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During the Q1 earnings call, Magna CEO Swami Kotagiri addressed the status of Ocean production. Not only is production idled, it’s not expected to restart.
Production Is Done
The impact on Magna’s bottom line is significant with the company estimating a reduction in sales for 2024 of roughly $400 million. Fisker and Magna had originally planned to produce around 120,000 Oceans a year.
“Production of the vehicle is currently idled. Our current outlook issued today assumes no further production.” – Swami Kotagiri, Magna CEO
This news likely comes as no surprise to anyone who has been watching the slow meltdown of Fisker thoughout 2024. As Henrik Fisker’s second attempt to launch an electric vehicle company, the Ocean was supposed to be the vehicle to kick it all off.
A Mountain of Problems
Instead, there were problems from the moment deliveries started last year. A series of updates were released to address problems from power loss to malfunctioning key fobs. Then the Fisker Pear was delayed and news of a possible financial deal with Nissan fell apart.
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Next, the company paused production for six weeks and raised $150 million, but that still wasn’t enough to fix its financial woes. Prices were slashed below $25,000 to clear inventory and raise cash while customers canceled their Ocean reservations as they became understandably worried about the company’s future. With no further Ocean production planned, it’s hard to see any future at all.
#Fisker #Ocean #Longer #Production
