Fisker, Foxconn Continue With Plans to Build EV in Lordstown
LORDSTOWN, Ohio – Fisker Inc. is still working with Taiwanese contract manufacturer Foxconn toward a final agreement to build its next generation electric vehicle at Foxconn’s Lordstown plant, Fisker CEO Henrik Fisker said Tuesday.
“We’ll make an announcement as soon as we have it firmed up,” Fisker told analysts during a conference call this morning discussing the company’s first quarter earnings.
Foxconn Chairman Young Liu is expected to visit Los Angeles-based Fisker Inc. in June, and the two companies are working together to develop a production plan for Fisker’s next EV, the Pear, an acronym for Personal Electric Automotive Revolution, the CEO said.
“We continue to work with Foxconn on finalizing plans for an innovative manufacturing setup that will be required for the uniquely engineered Pear,” Fisker told analysts.
He added that the company has implemented “radical new engineering” on the vehicle and has incorporated a new production strategy called “steel ++” that reduces parts content in the Pear by approximately 25%.
“Those are all things that we have to put together as our manufacturing plan,” Fisker said. One advantage in working with Foxconn and the Lordstown plant is that the EV startup is working off a “clean sheet of paper” to develop what he called a “radical new vehicle like the Pear.”
The company is also working to secure a deal with a supplier that would manufacture EV batteries for the vehicle in the United States, he said. Under the Inflation Reduction Act, at least 60% of an EV battery’s content for 2024 and 2025 must be manufactured in North America for the vehicle to qualify for tax credits.
Production of the Pear, initially targeted for 2024, has been pushed back to early 2025, Fisker said, to provide more time to secure a U.S.-based battery supplier.
Although renderings of the vehicle’s exterior and interior have been released, as well as some exterior photos of a test vehicle, the Pear has yet to be publicly displayed.
On Aug. 3, Fisker plans to host an investor’s day and unveil the Pear and other future models for the first time.
“We’ll send some shockwaves when we start unveiling the model lineup,” Fisker said. “I’m super optimistic about Fisker’s future.”
Foxconn purchased the sprawling Lordstown Assembly plant, a former General Motors factory, from Lordstown Motors Corp. in May 2022. Foxconn has said it plans to build EVs for other original equipment manufacturers at the 6.2 million-square-foot facility. Currently, Foxconn produces the Lordstown Motors Endurance electric pickup and the all-electric Monarch MK-V tractor.
Fisker confirmed in May it had signed a framework agreement with Foxconn with the intention of building the new EV at Lordstown.
“In respect to the facility, we have some great ideas,” added Geeta Gupta-Fisker, Fisker’s chief financial officer. “Chairman Young is visiting us next month, and I think there’s more to come.”
Fisker also confirmed that the price point for the Pear remains at $29,900. The company, as of May 8, has booked more than 6,000 reservations for the Pear.
“We will be announcing the firm deals once we have them – both from Foxconn and when it comes to the battery deals that we’re working on right now,” he said.
Fisker also reiterated the company’s long-term plan to manufacture its flagship vehicle, the Ocean, in the United States sometime in the future. The Ocean SUV, which is now manufactured in Austria, began production in November, and the first model was delivered May 5.
The company expects to achieve regulatory approval to start deliveries in the U.S. by the end of this month.
Fisker plans to manufacture between 32,000 and 36,000 Oceans this year, down from earlier projections of 42,000.
The company reported a net loss of $120.6 million during the first quarter, which Fisker attributed to higher costs related to research and development. As of March 31, the company reported $652.5 million in cash, down from $736.5 million at the end of last year. Shares of Fisker were down 7% to $6.14 at midday.
Copyright 2024 The Business Journal, Youngstown, Ohio.
