Magna International, the company that currently builds the Ocean, is assuming that production for the EV crossover is done given Fisker’s current troubles
Fisker just can’t catch a break. The automaker is still currently teetering on the edge of bankruptcy. And despite huge discounts on the Ocean, the vehicle is mess of issues. If a recent earnings call is to be believed, however, the Ocean itself might not matter much anymore.
Magna International is the company that contractually builds the Ocean for Fisker, but in a Q1 2024 earnings call, it seems like that may not be the case for long. First spotted by InsideEVs, Yahoo Finance, Magna’s Vice President of Investor Relations Louis Tonelli goes over the company’s state of finances in Q1 of this year. Early into the call, he addresses the company’s current status in its contractual partnership with Fisker, and it’s not great. Tonelli says Ocean production is currently idle, and the company doesn’t expect it to start back up either. Emphasis mine.
“It is important that I provide an update on our current status for the Fisker Ocean program. Production of the vehicle is currently idled. Our current outlook issued today assumes no further production.”
It’s important to note here that Magna is assuming this even though there has been no official word from Fisker on an Ocean production stoppage. This assumption, however, is repeated and reiterated in the earnings call by Magna’s Chief Financial Officer and Executive Vice President Pat McCann.
So far Fisker has produced just over 10,000 Oceans. Existing inventory got a massive price cut as well, meaning Ocean’s that were $50,000-$60,0000 are now well below $40,000. Magna assuming that no more Oceans will be produced even though Fisker has largely stayed quiet is very concerning though and adds to the company’s existing problems. We’ll just have to wait and see whether or not the Fisker responds to these assumptions.
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