Karma Automotive To Open Engineering And Sales Office In Troy, Michigan

JUN 10 2016 BY MARK KANE 8

Karma Automotive

Karma Automotive

Karma Automotive

Karma

Crain’s Detroit Business, relying on a press release from the Michigan Economic Development Corp., reports that Karma Automotive will open an engineering and sales center in Troy, Michigan.

“The investment is expected to total $3.6 million and create up to 150 new jobs

“The project is supported by a $450,000 Michigan Business Development Program performance-based grant and the city of Troy will provide marketing and promotional assistance.”

Whether or not this means that Karma Automotive (formerly Fisker Automotive) is close to returning to normalized operations, we don’t really know.

It’s expected that later this year Karma Automotive will present a new approach to the Fisker Karma plug-in hybrid electric car – the Revero.  But Karma Automotive has made empty promises in the past, so perhaps Revero’s reveal won’t goes as planned either.

Currently, it is being reported that the company plans on making 100-150 2017 model year Karma Reveros next year, showing a production model this summer, and “taking orders” later this year…not quite the full production that had been forecast for this summer a year ago.

Source: Crain’s Detroit Business

Categories: General

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8 Comments on "Karma Automotive To Open Engineering And Sales Office In Troy, Michigan"

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Sounds like Risky Business….

Well it’s good to see they, Karma, are still trying, but why Detroit, when they won’t even be able to sell a car there directly, if the ADA has anything to say about it, and they do, and they will.

Fisker used the traditional franchise dealership sales model.

I think there might be something being lost in translation. The original source describes what is being built as:

“an engineering and sales office”

To me, this means that their corporate sales pinheads will be co-located in an office building with their engineering staff.

I personally don’t read this as a direct-to-consumer sales location, any more than consumers will be interacting directly with the engineers at this location.

I believe this sales office will contain folks who write advertising and marketing content, and handle inside sales with franchise dealers.

I haven’t heard anything from Karma to suggest that they are going to abandon their traditional dealer-franchise sales model. In fact, a number of Fisker’s former dealerships now hold Karma stock shares as part of the bankruptcy settlement. So I don’t think they would back a model that would intentionally cut them out of the new company.

Karma seems a bit DOA.

Maybe they can get the Atlantic built? I dunno.

I think Tesla has shown that for the high end of the market, just go full EV with a big battery. Get rid of the noisy, stinky, polluting, vibrating, high-maintenance ICE.

Rumors are that they are working with BMW to essentially create something more like the BMW i8, using BMW sourced engines. Since BMW is a shareholder in Karma, and had previously contracted to be an engine provider for the Atlantic, this sounds reasonable.

If they actually put out what is essentially a re-bodied i8, the same way that Fisker Coachbuild built the Fisker Tramonto, etc off of other cars, it could be an interesting addition. The i8 has been a success, I don’t see any problem with building on that success.

But you are right, they need to actually execute on Fisker’s original statement of intentions to follow Tesla’s well-known business model of continuing to build newer models that are cheaper.

If they can pull off both of these transformations, they may have a future.

If they just stick to selling the original Fisker Karma under a new badge, with nothing new besides fixes to well known bugs, then they aren’t going to last long.

Considering the past history of success of the current owner, I would tend to bet with them instead of against them.

why would they open a sales center in a state that doesn’t allow direct sales?

Do you think they are actually going to sell one of those things?

With investment totalling less than $30k per job it supposedly creates, I think I’ll take this news item with a sack of salt.