Nissan preparing to save lots of Fisker from going under – report

Nissan and Fisker are reportedly deep in negotiations, which might see the Japanese firm investing in and partnering with the startup electric automaker to supply an electrical ute.

This week Fisker released its 2023 financial plan where it plainly stated there’s “substantial doubt about Fisker’s ability to proceed as a going concern”.

Because “current resources are insufficient to satisfy its [cash] requirements over the subsequent 12 months” the American automaker flagged that it should need to boost more debt or find an out of doors investor, but warned “there might be no assurance that Fisker will likely be successful in these efforts”.

Henrik Fisker, the corporate’s founder and CEO, hinted the corporate had two rays of hope.

The startup is currently talking to “an existing noteholder” about further investment, but more tantalisingly it’s also in “negotiations with a big automaker for a possible transaction which could include an investment in Fisker, joint development of a number of electric vehicle platforms, and North America manufacturing”.

In keeping with Reuters, this massive automaker is Nissan.

Two people told the news agency negotiations are continuing, and while deal hasn’t been finalised, it may very well be accomplished by the tip of March. One source claimed the term sheet is complete, and due diligence is being performed.

Because it stands, the deal will reportedly see Nissan invest US$400 million ($610 million) into Fisker, and help the struggling company complete development of its Alaska ute.

The Alaska would then go into production at certainly one of Nissan’s US factories in 2026, with Nissan also producing a ute based on the Alaska. There are currently two Nissan automobile plants in operation: one in Smyrna, Tennessee, and the opposite in Canton, Mississippi.

Neither company has been willing to debate the contents of the Reuters report.

The Alaska — or Kayak as it should be known in Europe — is predicated on a stretched version of the FT31 architecture that underpins the Ocean crossover that’s currently on sale.

Measuring around 5.3 metres long, the Alaska/Kayak will likely be signficantly larger than the 4.77m Ocean. Despite this, the ute was expected to be available with the Ocean’s drivetrains, which currently include a 205kW front-wheel drive model, and a more powerful 349kW/696Nm dual-motor all-wheel drive variant.

The Ocean is currently produced in Graz, Austria by contract manufacturer Magna Steyr.

If the deal goes ahead, and the Alaska is produced by Nissan within the US, the automobile may qualify for some or all the US government’s US$7500 ($11,500) federal tax credit, which is simply available to vehicles made within the US, and with batteries substantially made within the US.

At its launch last yr, Fisker anticipated the Alaska would have a starting price of US$45,000 ($69,000) within the US. The rear-wheel drive Tesla Model Y is currently listed at US$45,110, but because it qualifies for the total tax credit, its price is effectively US$37,610 ($57,600) for a lot of buyers.

The Nissan Leaf, which is manufactured in Tennessee, not qualifies for the federal tax credit. Nissan has already confirmed it should not produce the Leaf locally when it heads right into a third generation across the middle of 2025.

To provide it more room to breathe because it goals to seek out extra money or investment, Fisker says it should retrench 15 per cent of worldwide workforce, and is busy switching from a direct-to-consumer model to a dealer structure.

It’s unclear if the long run of Fisker Pear hatchback and Ronin GT will likely be addressed as a part of this rescue package with Nissan.

Despite its attractive design, the Fisker Ocean has struggled to seek out buyers. The corporate is estimating it should sell between 20,000 and 22,000 Oceans in 2024. By comparison, Tesla sold an estimated 1.23 million Model Y crossovers in 2023, enough for it claim the title of world’s top selling model ahead of the Toyota RAV4 and Corolla.