Magna Steyr Forecasts Fisker Ocean Production Will Not Resume

Fisker doesn’t actually build its own vehicles, instead relying on a third party to manufacture the Ocean SUV. Their contractor, Magna Steyr, is forecasting that they don’t expect production to resume, providing yet another bleak outlook for Fisker.

During the Magna Steyr Q1 2024 earnings call last week, CEO Swami Kotagiri said the company was adjusting its forecast for 2024, with one of the conditions being the assumption that production of the Fisker Ocean will not resume.

Magna has not been producing Fisker’s only vehicle, the Ocean SUV, after the EV maker called a halt earlier this year to preserve cash. Kotagiri reiterated it by saying the “production of the vehicle is currently idled” and expected this situation to continue.

“Production of the vehicle is currently idled. Our current outlook issued today assumes no further production. Consistent with disclosure, we provided in our annual information form, this assumption reduces our 2024 sales by about $400 million and impacts our adjusted EBIT margin by about 25 basis points,” Kotagiri said. (via Yahoo Finance)

In addition to getting damning reviews, Fisker has been struggling to move inventory. It produced more than 10,000 units last year but delivered less than half. Fisker tried to drum up interest by slashing the Ocean’s price significantly but has reportedly only sold 200 vehicles, despite offering them for almost half their original price.

After warning of a possible bankruptcy, Fisker has pursued external investments and acquisition by another company but seems to have been running into a brick wall at each turn. It has also been laying off its workers.

Previous Article

Tesla Optimus shows off its latest updates in new video

Next Article

Lucid Q1 2024 Earnings: Losses Mount Despite Revenue Beat

You might be interested in …