Magna's CEO Swamy Kotagiri revealed serious doubts about the future production of Fisker Ocean amid ongoing financial troubles faced by Fisker. The statement was made amidst discussions regarding a $400 million expected reduction in Magna’s 2024 sales and a subsequent impact on its adjusted EBIT margin.
Fisker, confronted with insufficient funds to continue operations beyond this year and failed negotiations for new partnerships since March, has halted the production of its once-promising electric vehicle, the Fisker Ocean. As a result, this halt in production had a substantial knock-on effect on Magna Steyr, a subsidiary of Magna International located in Austria, where the Ocean was manufactured.
On the same earnings call, Magna’s CFO Pat McCann also confirmed the cessation noting simply that it assumes "no more production of the Fisker Ocean." This decision comes after what was initially a six-week planned pause in production earlier in March but now seems indefinite. Concurrently, reports have emerged about negative experiences from buyers of Fisker Oceans released before this halt which further taints public perception of both companies.
Fisker tried tackling these setbacks by reducing prices dramatically on 2023 models; however, their stock price has continued to decline significantly. These severe financial issues are casting long shadows over the firm's survival possibilities through 2024 without additional intervention or successful partnership deals.
Source: Motor1