The end could be near for Fisker. Actually, it may have already happened. In a first-quarter earnings call last week from Magna International, the company stated that Fisker Ocean production is still idled, and it "assumes no further production" will take place. It's not an official announcement from Fisker, and "assume" isn't a definitive stand from Magna. Still, it's pretty damming considering the current state of Fisker.
Magna International is the company that builds the Ocean for Fisker. Production takes place through Magna Steyr, a subsidiary of the company at its manufacturing facility in Austria. Ocean production was idled back in early March for what was supposed to be a six-week pause. But that timeframe has come and gone.
Gallery: Fisker Ocean Production Model
Here's the specific quote from Magna International CEO Swamy Kotagiri regarding Fisker from the company's Q1 earnings call:
"It is important that I provide an update on our current status for the Fisker Ocean program. Production of the vehicle is currently idled. Our current outlook issued today assumes no further production. Consistent with disclosure, we provided in our annual information form, this assumption reduces our 2024 sales by about $400 million and impacts our adjusted EBIT margin by about 25 basis points."
Later in the call, Magna International Chief Financial Officer Pat McCann also mentioned the company assumes "no more production of the Fisker Ocean."
We contacted Fisker regarding the current and future status of Ocean production. A spokesperson declined to comment.
It's certainly no secret that Fisker is in trouble. Talks of partnering with an automaker to help the company's cash flow situation fell apart back in March. Fisker said it didn't have the funds to survive through the end of the year, and shortly thereafter it drastically slashed prices on 2023 Oceans. Most recently, the company was rumored to be in talks with more automakers for a possible partnership. However, the stock price has tanked and reports of nightmare Ocean ownership experiences are becoming more widespread.
The Fisker death watch continues...
