Fisker, the electric vehicle (EV) startup, is set to significantly increase production of its Ocean sports utility vehicle in the fourth quarter. This move comes as part of the company’s strategy to meet the surging demand for electric vehicles. They aim to boost daily production from the current 180 units to an impressive 300 units.
Fisker Manufacturing Partner: Magna International
Fisker’s production expansion is made possible through a strategic manufacturing partnership with Magna International, a prominent Canadian auto part supplier. Magna is tasked with the production of vehicles intended for both European and North American markets. This collaboration serves as a key pillar in Fisker’s efforts to establish a substantial presence in the competitive electric vehicle market.
Fisker Promising Delivery Projections
CEO Henrik Fisker has announced optimistic delivery projections for North America, with a significant uptick anticipated in September. As of September 4th, Magna has successfully manufactured 3,123 vehicles, with almost 3,000 already handed over to Fisker. Impressively, over 450 Fisker Ocean vehicles in the United States have either been delivered to eager customers or are in the final stages of the delivery process.
Addressing Supply Chain Challenges
Fisker encountered challenges in the previous month, resulting in a revision of their annual production targets. These adjustments were necessitated by disruptions in the supply chain. Despite this setback, the company managed to report a quarterly loss that was smaller than expected. Additionally, they achieved a significant milestone by generating their first revenue from the delivery of electric SUVs.
Navigating a Complex Supply Chain
While most of Fisker’s suppliers have successfully rebounded from the aftermath of COVID-related disruptions and are aligning with the company’s production increase, one critical supplier faces ongoing challenges. This particular supplier provides a specialized component that demands specific skilled labor, leading to delays beyond initial projections.
Fisker’s proactive approach to ramping up production is in line with the wider trend of surging EV adoption. The company’s strategic move reflects their commitment to meeting the burgeoning demand for electric vehicles and signifies a positive step toward establishing a formidable presence in the dynamic electric vehicle market.