Fisker’s initiative for future product development
There is good news for Fisker Automotive. A well invasion of cash will bring Fisker closer to the goal of launching a second luxury plug-in hybrid vehicle. Fisker Automotive, which is well known as the maker of the Karma luxury plug-in hybrid, may have found a solution for the financial problem they were facing. According to the information disclosed by Bloomberg, the company has raised $100 million from private sources to fix quality issues with the Karma and finish development on a second model, the Atlantic.
Tony Posawatz, who is the CEO of Fisker, has called the influx of funds “another major vote of confidence in Fisker’s pioneering technology and business model.” Tony also said that the details on the Atlantic’s launch will be announced by December, this year.
According to the experts, the $100 million will provide Fisker with most of the cash it needs to finish work on the Atlantic. Previously, the company said that it needed $150 million to get the car ready for sale. Most importantly, the Atlantic will need more funding because, unlike the Karma, Fisker will be building the car itself, possibly at an ex-General Motors plant in Delaware.
Though Fisker has raised $1.2 billion in capital, it had a rough year till now. In August, it recalled all 1,900 Karmas after a cooling fan set one on fire in a California parking lot, the second time this year that a Karma caught fire.
Not only this, Fisker also had issues with battery supplier A123 Systems. An improperly-placed hose clamp led to a recall of 247 cars earlier this year, and other faulty components caused embarrassment when a Karma owned by Consumer Reports died during testing.