Fisker Ocean EV assembly paused for six weeks

ABU DHABI: Fisker will halt production of its Ocean SUV for six weeks to prevent bankruptcy. With this, the US electric car manufacturer aims to balance inventory and secure the required financial assistance. As per SEC filings, the company raised cash by selling convertible bonds to CVI Investment at a discount, to secure fresh cash. Fisker sold convertible bonds valued at up to $150 million.

Fisker is reportedly having a discussion with a famous automaker, potentially Nissan, for an investment deal to strengthen its cash flow. The collaboration could see Nissan leveraging Fisker's Alaska pickup truck to cut down on development expenses, benefiting both parties. However, neither company has officially confirmed the negotiations.

The halt in production aims to balance the inventory of Fisker Ocean which currently stands at 4,700 units holding a value of over $200 million as of March 15. With this, it aims to align inventory levels with demand by addressing surplus stock.

Fisker currently only offers the Ocean electric SUV and does not have its own production facilities, aiming for a lean development and design model. Around 1,000 Fisker Ocean units production occurred by March 15, 2024, with 1,300 units delivered globally. Currently, Fisker holds approximately 4,700 Ocean vehicles inventory, including those that were manufactured in 2023.

Also read: Isuzu D-Max set to undergo an electric transformation