The Future of Fisker Ocean Production Hangs in the Balance

Financial Loss Looms for Contract Manufacturer

The contract manufacturer responsible for building the Fisker Ocean SUV is facing a potential loss of $400 million in sales if production does not resume soon. Fisker had instructed Magna to pause production for six weeks in mid-March, but there are no indications of it starting up again.

Uncertain Future for Fisker

Following recent layoffs and a lawsuit from an engineering firm, the outlook for Fisker appears bleak. The contract manufacturer, Magna International, has expressed doubts about the future of the Ocean program, hinting that production may not continue.

Production Halt Raises Concerns

Instead of manufacturing the Ocean in-house, Fisker outsourced production to Magna International’s subsidiary in Austria. Despite efforts to secure a deal with a major automaker, production remains at a standstill, leaving the company’s future in jeopardy.

Financial Ramifications

If production of the Ocean does not resume, Magna International stands to lose $400 million in sales revenue. The company has $195 million in deferred revenue linked to the Fisker contract, which could impact its financial outlook if production does not resume.

Bankruptcy Looms

Fisker’s financial troubles have escalated, with missed interest payments and looming bankruptcy on the horizon. Talks with potential partners have faltered, leaving the company in a precarious position.