Fisker To Negotiate New Contract With A123’s Wanxiang On Batteries For Karma. Hasn’t Built A Car Since July

4 years ago by Jay Cole 10

Look Behind You, There Is A Big Storm Coming

Apparently, A123 and Johnson Controls original attempt to enter Chapter 11 bankruptcy and rid the company of both debts and “under market” contracts has paid off for new owner Wanxiang, as it appears Fisker’s original contract with A123 has been vacated.

Fisker spokesman Roger Ormisher said, “We plan to wait until Wanxiang takes full control of A123, then we will get in contact with them to negotiate a contract.”

The spokesman notes that until that happens, and despite losing 350 Karmas in Superstorm Sandy, Fisker has a “sufficient supply of cars,” while also noting, “we are not looking for a new battery supplier.”

Production Of The Karma Has Been Idled In Uusikaupunki, Finland Since July

Fisker, who now finds itself on the hunt for more investment capital to bring the Atlantic to market, is currently suffering blow after blow of bad news or bad press, and the A123 bankruptcy has brung one more disappointing revelation.

Mr. Ormisher also took this moment to come clean about Karma production; and offered that no car had been built in Finland since the plant when on summer break in July.

The company hopes to restart production as soon as a new deal can be struck with Wanxiang.  In the meantime, Fisker has cut its workforce to around 300.

Earlier this year, due to production delays in 2011, the DoE froze the bulk of its $529-million loan to Fisker.

The Delaware Bankruptcy Court approved the sale of A123 to Wanxiang Group yesterday afternoon for $256.6 million, but the deal has yet to be approved by the Committee on Foreign Investment.

Reuters

 

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10 responses to "Fisker To Negotiate New Contract With A123’s Wanxiang On Batteries For Karma. Hasn’t Built A Car Since July"

  1. GeorgeS says:

    Maybe since the Chinese now own the company the price will GO DOWN!

  2. Schmeltz says:

    The thing I latched on to was the statement that Fisker had a sufficient amount of cars in inventory yet, when they lost 350 to Superstorm Sandy, and haven’t been manufacturing cars for 4 months! Reading between the lines, I’m seeing that Fisker isn’t selling cars. No wonder they don’t want to publish sales numbers…there’s nothing to publish!

    How in the world do they continue to get investment money? How long can they sustain the setbacks? They either need a corporate take-over, and soon, or forget about it all together.

    No joy in saying any of the above. Just reality IMHO.

  3. Josh says:

    I agree with Schmeltz, Fisker sales must be abysmal. I do not remember what their sales targets are, but there is no way they are coming close to hitting them. Model S making it to production probably hurts them as well.

    I did see one disappear from a dealership (they have had two sitting in the same place for ~6 months) in Houston this month. I assume it was sold and didn’t just catch on fire :-0

    1. Schmeltz says:

      Thanks Josh. I think Tesla is way ahead of Fisker in terms of producing a marketable product, in corporate respectability (both Daimler and Toyota have partnerships with them), and also in R&D ability. The Model S has been well recieved while the Karma..well, not so much. Having said all of that, Tesla is still very iffy in terms of surviving. Now compare Tesla to Fisker, and Fisker really starts to get worrisome. Fisker’s list of concerns:

      1. Selling the inventory they already have when every other week is a story about a car fire or other setback.
      2. Marketing an exotic car that really beats nothing. The Volt is more efficient as an EREV, and other exotics beat the car in speed, luxury, and appeal. So how do you sell this?
      3. Meeting payroll. I doubt Tony Posawatz is working for nothing.
      4. Raising more private cash when the DOE has shut the faucet.
      5. Developing the Atlantic and the other mainstream EREV (sorry EVER) when running low in cash.
      6. Competing. It’s not 2006 anymore. There are competitors from mainstream guys that will take sales from Fisker in a heartbeat.
      7. Dealerships…where are they?

      I like the cars..especially the Atlantic. But I just can’t see how this is going to continue.

      Maybe Jay can give Marchionne’s number to Henrick?

      1. Bobafet says:

        Let’s see there were two fires caused by a faulty, quickly recalled fan, and one fire when Hurricane Sandy inundated 300 cars. Hasn’t 2013 Ford Explorer SUV already had a dozen fires? Problem is media has held Fisker to a double standard of launch perfection that other automakers often don’t meet either, plus a presidential candidate made them his scapegoat so every time they have bad luck half a country of partisans decides they have to jump on the bandwagon. Yes and guns don’t kill people. As someone who invented a technology that changed all your lives, makes me want to start over in another country…

  4. Turbofroggy says:

    Hmm, since the contract with A123 has been “vacated”, maybe Fisker can buy some batteries from LG Chem until the A123 thing gets figured out. LG’s workers need something to do anyway: http://green.autoblog.com/2012/10/22/chevy-volt-battery-workers-at-lg-chem-idle-since-theres-nothin/
    They should be able to get the exact same chemistry from LG Chem and the exact same physical form factor, that way they wouldn’t have to re-engineer anything just drop in replacements.

    1. Roy_H says:

      A123 has patents on their battery as does LG Chem. They are NOT the same, and LG Chem uses a lithium polymer manganese design and A123 a lithium iron phosphate type. LG Chem would not be able to legally copy A123 if they wanted to.

      These batteries also have different characteristics. A123 claims temperature management is not required, and LG Chem has higher energy to weight.

  5. shawn marshall says:

    Glub….Blub…..Gurgle…….Another ill conceived notion drowning in a sea of red ink after wasting hundreds of millions of dollars , an indebtedness saddled on the backs of the poor taxpayers.

  6. Bobafet says:

    The Fisker Karma is a very competitive car, just not in the categories the reviewers are accustomed too. I like it way more than my Aston Martin DB9 — way more comfortable to commute with. It’s a perfect luxury commuter car, with charging on both ends, ultra smooth launch and snug handling, super comfy seats. But the stupid reviewers insist on comparing it to a Volt or a minivan or segment they aren’t familiar with. Thing is most Aston Martin buyers just set them in the garage afraid to drive them except for special event. The Karma is something you WANT to drive everyday more than any other car I’ve had.

    1. Roy_H says:

      Glad you weighed in as somebody who actually knows what they are talking about! Most of us (me included) sit on the sidelines with no personal experience and all too often express opinions mostly based on other people’s opinions.