Fisker explores collaboration with other companies

Fisker (FSR) explores collaboration with other companies

Fisker (NYSE:FSR) CEO, Henrik Fisker said Wednesday that the electric automaker is exploring collaborations with other companies to scale up market share faster.

"Buyers aren't loyal anymore to their traditional brands. That changes everything. If we collaborate with someone, you can scale quicker ... it could be with suppliers, other car companies, tech companies - we are exploring all these avenues," Fisker said, speaking at the Reuters Automotive Conference in Munich.

During interviews at the conference on Tuesday, senior executives from Polestar (NASDAQ:PSNY) and Smart, rival electric vehicle (EV) manufacturers supported by Mercedes (ETR:MBGn) and Chinese automaker Geely (HK:0175), expressed their willingness to form partnerships in order to tackle supply chain and technology obstacles. These three companies, despite being comparatively small, are introducing fresh product lines while facing competition from larger contenders like Tesla (NASDAQ:TSLA), BYD (SZ:002594), and well-established global automakers who are engaging in price reductions to boost sales.

Fisker said that it has 65,000 reservations for its Ocean SUV, which is being launched from a factory in Austria operated by a unit of Magna International Inc. (NYSE:MGA). The CEO reiterated his goal of producing 1,400 to 1,700 Ocean EVs in the current quarter. Although the company recently adjusted its full-year production forecast for the Ocean, Fisker stated on Wednesday that the challenges in sourcing a specific component for the interior of the Ocean have been successfully resolved.

For now, Fisker's agreement with Magna allows for production of up to 120,000 Ocean EVs a year from the Magna Steyr plant in Graz, Austria.

Fisker next model line, the PEAR, will have a starting price of $29,990 and will make its debut in Los Angeles on August 3. The company intends to have the PEAR assembled at a factory in Ohio by contract manufacturer Foxconn.

According to Fisker, the PEAR will feature 25% fewer components compared to a similar contemporary car. However, the company has chosen not to adopt Tesla's approach of utilizing large cast parts as a means to reduce production expenses.

"We didn't want three giant mega-castings," and put customers at risk of having to scrap cars after an accident. Instead, Fisker will build vehicles from steel, combining multiple parts into one using single stampings, he said.

The CEO said eventually the company plans to have production capacity in Europe, China, the United States and India.

Shares of FSR are up 5% in mid-day trading on Wednesday.