“Magna International” and its subsidiary “Magna Steyr” are a concern that produces machines of various car manufacturers, and also deals with the supply of parts. This company had agreed with electric car start-up Fisker that Magna would produce their Ocean electric model. “Magna” has announced that it does not plan to produce new Fisker Oceans this year, putting another nail in Fisker’s coffin.
“Magna” boss Swami Kotagiri, announcing the financial results of the first quarter, said that currently the production of Ocean has been stopped and there are no plans to resume it. It also means that the Kotagiri-led company has to adjust its financial performance forecasts for this year.
It’s not that Magna doesn’t want to make the car, but Fisker’s viability is in serious jeopardy right now. The electric car company was also unable to achieve an increase in volumes, there were strange things with deliveries and other problems, but now Fisker is trying to save itself from bankruptcy with all its might – the prices of cars have been reduced by even 40%, trying to sell what is produced and in warehouses.
This, of course, does not sit well with the people who bought the Fisker Ocean at full price – they feel completely cheated, and they also worry about what will happen to maintenance, warranty repairs, various updates and other nuances. There are comments on the web about people buying a $70,000 black box with very questionable resale value. Fisker’s management has said that there are at least four companies that are ready to step in and save the company, so discussions are ongoing. It is known that in April, negotiations about possible investments in Nissan failed.
Tags: Magna International longer plans produce electric cars troubled company Fisker year
