Fisker Inc. and Volkswagen AG have failed to sign a deal that would have allowed Fisker’s electric vehicles to use the VW Modular EV platform. Talks have been postponed until September, whose discussions were supposed to conclude by July.
Henrik Fisker commented on July 31st that they could not sign the agreement with VW before the end of the month, as they had previously decided, in an investors meeting filed with SEC.
Fisker also mentioned that negotiation should continue in September while also being in contact with other probable OEMs and suppliers to evaluate other options. He further said that he hopes that they will be able to find and sign a suitable manufacturing and supply agreement before the end of the year.
Earlier in July, Fisker had mentioned that they were talking with Volkswagen as to use their MEB platform to build their new Ocean electric SUV. It is noted that this deal would permit their EV to be available sooner, saving them half the time and tremendous amounts of money.
The production of the new Fisker Ocean electric SUV is expected to start by the last quarter of 2022. Last month, Fisker said that they had already collected some 7000 advanced reservations and deposits for the new SUV. They also reported that 30,000 customers were interested in the SUV.
The conversion rate from stated interest to reservation of the vehicle is around 23%, which is encouraging for the company as they had anticipated only 5000 reservations. According to Fisker, they are experiencing a constant increase in the number of bookings and reservation rates as well.
By the end of 2025, Fisker is expected to increase its model lineup by 3 vehicles. Apart from the Ocean SUV, the other vehicles will include a supersport sedan, a sports crossover, and even a pickup truck.
Fisker has recently come into a merger of $2.9 billion with Spartan Energy Acquisition Corporation. Unfortunately, the share price of SPAQ dropped by 20%, dipping from $23.86 to $12.58, on Friday, right after the deal with VW AG could not be concluded.
The result was definitely not what Fisker was going for, and failing to settle the deal with Volkswagen will undoubtedly cost the EV startup a lot of money. This situation is not good news, especially since the EV market segment is getting a little more competitive every week.
It will be interesting to follow how Fisker will react and if they will look towards finding an agreement with a different manufacturer.
To be continued in September…