Fisker Links Up With Magna to Create Its Own Electric Ocean SUV

Fisker Inc.’s disparities of turning the battery-powered ocean crossover car into reality got much better. The Los Angeles start-up guided by luxury vehicle designer Henrik Fisker has joined auto engineering heavyweight Magna in the Awide partnership to start assembling it in two years. 

The self-outline “digital car firm” has stated for months that it will outsource Ocean production rather than building its plant to cut down production costs. This production announcement comes prior to the shares listing on New York Stock Exchange this month via the SPAC merger. Magna, which assembles cars under BMW, Toyota, Jaguar Land Rover, and Daimler contracts, will assemble the Ocean at its Graz, Austrian plant. Henrik Fisker tells Forbes that, “the plan is to conduct a deep, strategic partnership with Magna.” “The decision requires Magna to take a 6% equity stake in Fisker, Magna being responsible for producing the Fisker Ocean, a target planned in Q4 2022. The target includes using Magna’s EV architectural platform.”

Fisker wants to obtain a veteran production associate that can provide key components, crash-testing, and engineering services. Together with over $1 billion raised by Fisker through its stock listing, among another fundraising, positioning the start-up to get battery-powered SUV on the market could be relatively fast. However, it remains unknown whether the US and Europe consumer demand (the first Ocean’s market) will meet the Fisker’s 50k units target in 2023.

Disclosed in January at the CES, Las Vegas, the modish, electronics-loaded Ocean has an internal capacity like that of the BMW 5-Series, but with a base price of $37,500, less than half than the cheapest Tesla Model X. Further, it can be leased for $379 a month.

Fisker cites that the low-cost approach is for avoiding the $1 billion plant building expense. It will also allow for cash flow positivity as early as 2023. The 6% of Magna’s stake stands for production services, including engineering but not for cash investment. 

Magna International President said that they are happy to work with Fisker on such an exciting and sustainable product, as it brings them additional opportunities. Besides, Swamy Kotagiri says that it’s a great example of their strategy to leverage their robust portfolio to plate for future mobility requirements. They will be able to utilize their full vehicle engineering as well as production capabilities.

It’s the Fisker Inc.’s second trial for a successful electric vehicle company by a Danish designer, who modeled premiums autos for BMW, Aston Martin, brought to Teslas by Elon Musk. Fisker’s first automotive attempt was filed for bankruptcy in 2013, even after having a visually-stunning plug-in hybrid. Though it was a tough experience, Henrik got the Fisker Inc. approach from it. He came up with many ideas that he wants incorporated to come up with this ideal electronic Ocean car.