Written by Cláudio Afonso | [email protected] | LinkedIn | X
Magna, the manufacturing partner of the electric vehicle (EV) startup Fisker, notified its workforce in Graz (Austria) on Wednesday that will reduce around 500 positions.
With the production of the Fisker Ocean model halted for undetermined time, Magna found itself compelled to implement substantial workforce reductions. This decision follows a prior adjustment in December when Magna reduced from a double-shift to a single-shift operation.
On March 18, Fisker reported having approximately 4,700 SUVs in inventory as demand didn’t meet the management expectations in 2023.
Despite initial ambitions to produce between 20,000 and 23,000 units annually, only approximately 10,000 Fisker Ocean units were manufactured last year. Compounding the issue, the US electric car startup failed to secure a partner in March, casting further uncertainty over the company’s future.
In late March, Fisker started considerable discounts on the 2023 inventory with the Extreme variant now starting at $37,499 (down from $61,499), the Ultra variant starting at $34,999 (from $52,999), and the Sport’s one at $24,999 (from $38,999).
Fisker published on Monday its annual report disclosing the delivery of over 6,400 Ocean SUVs since May 2023, when deliveries kicked off in Denmark.
“Our first model, the all-electric Fisker Ocean, has already garnered numerous awards for its design. As of April 16, 2024, the company has delivered over 6,400 Oceans,” the EV maker stated.
In late February, Fisker had reported the production of 10,193 units and the delivery of 4,929 vehicles which results in more than 1,471 vehicles delivered from January 1st until April 16. Fisker delivered its first vehicle to a customer on May 5, 2023, in the Danish capital Copenhagen.
Fisker spent $904.9 million in cash in operating and investing activities during 2023 and saw its cash balance decreasing by 411 million. The company disclosed its cash balance reduced from $736.5 million by the end of 2022 to $325.5 million at December 31, 2023.
The company said it “expects to require additional cash in 2024 for debt service and investment needs” adding that its “ability to generate cash from operating activities will depend on our ability to transition to a dealer model and sell vehicles”.
Fisker concludes by saying that “there is substantial doubt as to our ability to continue as a going concern”.
The company announced on Monday Michael Healy, senior managing director at FTI Consulting, as its new chief restructuring officer. This decision follows Fisker’s recent agreement with an investor, set to expire on April 26.
Fisker has recently withdrawn all financial and operational guidance for 2024 and appointed both Deutsche Bank and PJT Partners as financial advisors to explore strategic alternatives.
Fisker received the delisting notice of its stock from the New York stock exchange on March 25 and started trading on the OTC market, where securities trade via a broker-dealer network.
During the weekend, Fisker organized 15 in-person events for owners throughout the United States and Canada, amid Earth Day celebrations. These gatherings occurred in various locations, including San Diego, Manhattan Beach, Nashville, Denver, Atlanta, and Ontario.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
