2012 Fisker Karma
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The optimist would say "a hundred million down." The pessimist would add, "...and about 235 million to go."

Either way, Fisker Automotive took a pretty good bite out of the federal government's planned line of credit that the California-based automaker can't access because of production delays related to the extended-range plug-in Karma.

Fisker said recently that it raised more than $100 million of new equity funding, which will be used to expand production and marketing-related efforts for the Karma, which went on sale last December. The company in total has raised more than $1.2 billion in private equity, about half of that within the past year and a half. One reason for the fundraising was because Fisker, which was granted a $529 million line of credit from the U.S. Energy Department in 2010, drew down just $193 million before the remaining $336 million was frozen because of Karma production delays. Fisker's press release on the new funding is available below.

Meanwhile, on the good news/bad news front, Consumer Reports last week shredded the $107,000 Karma in a review, saying that, among other things, its pickup, handling, interior, visibility and dash controls all failed to meet expectations.
Show full PR text
Fisker Secures New Equity Funding

09.26.2012

Fisker Automotive has completed the initial closing of its current equity financing, representing in excess of $100 million of new funding.

This initial closing will provide the company with funding for continued product development, market expansion and a new global marketing campaign for the Fisker Karma, the world's first luxury Electric Vehicle with extended-range (EVer™).

Fisker expects to continue to utilize equity financing to support its business plan that combines continued sales of its inaugural Karma model with market expansion into the key Middle East and China markets, along with further development work on its second production model, the mid-size Atlantic sedan.

Since its inception in 2007, Fisker Automotive has raised over $1.2 billion in private equity and borrowed $193 million under the Department of Energy Advanced Technology Vehicle Manufacturing (ATVM) loan program. In the last 18 months, the company has raised in excess of $600 million in private equity, with nearly $300 million of this total coming since it brought the award-winning Karma to market in December last year.

Tony Posawatz, Fisker's CEO said: "This is another major vote of confidence in Fisker's pioneering technology and business model. We are grateful to both our investors and our initial customers who have supported our company and are quickly becoming our biggest advocates."

Since being launched in December, nearly 1,500 Fisker Karma sedans have been delivered to customers in the US and Europe, bringing the company a further stream of revenue and helping to attract new investment interest.

Adds Tony Posawatz: "The Karma is already a testament to US automotive innovation and advanced technology and we intend to announce our production plans for the Atlantic and a timeline by December of this year."

Henrik Fisker, founder and Executive Chairman of Fisker, said: "The latest financing arrangements mark an important milestone for Fisker. We are now poised to invest in the next generation of extended-range battery electric luxury cars and another chapter in the fast-paced expansion of Fisker Automotive, and are demonstrating our commitment to long-term success."

About Fisker Automotive, Inc.

Fisker Automotive is a new automaker with a mission to build an innovative, eco-driven company that redefines and reshapes how the world thinks about cars. The company is leading the auto industry with its unique Electric Vehicle with extended range (EVer™) powertrain technology, which combines the power and efficiency of electric drive with the range and freedom of a gasoline engine.

Fisker was established in Southern California in 2007 by top auto designer Henrik Fisker and business partner Bernhard Koehler. In 2008 Fisker unveiled the Karma, the world's first luxury Electric Vehicle with extended range. On sale since December 2011 the Karma was delivered to the market in record time. The Karma is the first and only American car to have won the coveted BBC Top Gear Luxury Car of the Year award, Automobile magazine named it 2012 Design of the Year, and TIME magazine listed the Karma one of the 50 Best Inventions of 2011.

Fisker is headquartered in Anaheim, California and markets its products through a growing network of independent retailers around the world. Fisker Automotive can be found online at www.fiskerautomotive.com


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    • 1 Second Ago
  • 13 Comments
      me
      • 7 Months Ago
      I don't know they seem to keep getting more money but no news on future products or building in the plant in NJ.. While Tesla seems more real with cars ( that really drive not burn up ) better built, a network of charging stations & on the NYSE ... I drive both & we went with the Tesla. The Karma is great on the outside but the ride & quality was not up to the 100K price... I hope they correct these issues & build cars in the USA
      oktrader
      • 7 Months Ago
      Well, for anyone out there with a solid idea that needs funding, there is good news in this story: if Fisker can raise money, you can, too, if you know where to find it. The other good angle in this piece is the reminder that the DoE shout down their contribution at the right time. The Atlantic plan was weak, and didn't meet ATVM requirements. Now, as for Fisker's cars, this is one topic in which I am in total agreement with Elon Musk: a mediocre product at a high price.
        A_Guy
        • 7 Months Ago
        @oktrader
        You act like engineering a whole car in a new company with a complicated drive-train that isn't some youtube Frankenstein project is an easy thing to do. I'm not a big (or...any) fan of Fisker, but they have managed to launch their first car. You've got to start somewhere, and I'd say that's a pretty good start.
          oktrader
          • 7 Months Ago
          @A_Guy
          A Guy, you miss my point. I would NEVER argue that executing the complete value chain for an automobile -- design through rate production to regulatory compliance and reliable service -- is easy. Far from it: I believe somewhere in the lost archive of my ABG posts I’ve stated that there is no industrial task so difficult as this one, save large commercial aircraft and perhaps nuclear aircraft carriers. I’m not exaggerating. My point is that Fisker is NOT a successful product. It is buggy as can be, exhibits only so-so performance for a premium price, and the execution of the project has been fraught with problems. Moreover there are arguably a number of poor system architecture choices that linger on the Karma design despite the opportunities that presented themselves for change. I don’t know much about the Atlantic except that Fisker could not support the financial covenants in the Loan Agreement and still conduct the project. Hence DoE pulled the plug. My point is that Fisker are unprepared to carry on as a viable producer of automobiles, that’s all. Just because something is hard to do doesn’t mean the marketplace treats you gently despite your shortfalls. It doesn’t: it’s a jungle out there, and Fisker is a weak kitten that doesn’t justify investment. The DoE was right; as for private funds, they can do as they please as long as none of it is mine.
          Marcopolo
          • 7 Months Ago
          @A_Guy
          @Oktrader What a bizarre analysis ! Comparing a bespoke, GT , with radially different technology, from a small and new manufacturer, with conventional products from an OEM, is not only unfair, but pointless. To it's customers, the Fisker Karma is a hugely successful product, with great potential. Even the one owner who was unfortunate enough to experience a component failure (radiator fan) that severely damaged the car, not only ordered a new Karma, but invested in Fisker Motors ! Like all new vehicles from small manufacturers, the first Fisker Karma's can be expected to have quirks. But this will not dismay or deter the sort of buyer who wants to drive a Karma. Fisker has the time, (and loyal customer base), to improve the build quality, and source more reliable suppliers. The Karma will never be a mass, volume seller, is not meant to be. It's a vehicle with a high price tag, marketed to those customers who are willing to accept the Karma for what it is. Fisker Motors should put the Atlantic on hold, and concentrate on perfecting the Karma, producing the stunning 'Sunset' and selling 5000 cars per year. There are 5000 eager Karma buyers in the world each year to support the production run, and build the marques reputation. "My point is that Fisker are unprepared to carry on as a viable producer of automobiles, that’s all " Curious remark, considering that Karma's are being produced and nearly 1600 have been sold, at a gross revenue of approximately, $1,600,000,000 ! Even on a crude analysis, if Fisker Motors only made a net profit of 10% per unit, that's still represents, a better return on invested capital than most automakers !
          EVnerdGene
          • 7 Months Ago
          @A_Guy
          @Marco "carry on as a viable producer of automobiles" Interesting choice of word "producer". You can't really say they are a manufacturer. What crude analysis puts Frisker's net profit at 10% ? Where do you get that figure? Oh, you pulled it out of what orifice ? I really can't understand why you are such a cheerleader for this vehicle. Beautiful? OK, if you say so. Technological marvel? The numbers aren't marvelous. Market success? Yeah, I agree with you about one thing. They should not even attempt the Atlantic. Sold to the DOE as a $40k electric. Look what Nissan can retail for $40k - and probably not making a profit at that. Now everybody and their brother will have an EV within a few years. A market for a BMW-powered hybrid? Maybe. Yeah, maybe if there was a profit to be made, BMW would do it.
        Letstakeawalk
        • 7 Months Ago
        @oktrader
        "The Atlantic plan was weak, and didn't meet ATVM requirements." I understand the first part of that is simply your opinion; what requirements are you saying the Atlantic program didn't meet? It was delays in the Karma program that tripped the loan shutoff switch.
      .cj
      • 7 Months Ago
      $5 gas, foreign oil supply, syria, and the only thing you do, is bashing cars of tesla / fisker ...
      oktrader
      • 7 Months Ago
      LTAW: Exactly. Delays in the Karma execution ate up $$ and schedule. With no restructuring of the Atlantic plan to address these challenges and preserve sensible financial security in the Fisker entity, there was no achieveable plan to execute the Atlantic.
      Marcopolo
      • 7 Months Ago
      Danny King never misses a chance to repeat over, and over the CR report ! Presumably, Danny King purpose is to establish this highly subjective, CR opinion, as a definitive 'truth' by constant repetition. What would be more interesting, and more honest, would be for Danny King to give Fisker Motors a call, and arrange to test drive the vehicle for himself. The Danny king would be able to post a review which was his own opinion. Criticism or the Karma contains such 'Facts' as the Karma interior is to small in comparison to it's exterior ! Cr presents this revelation as an example of poor design or engineering. In fact, it's neither ! At the best it's an opinion based on the aesthetic taste of the reviewer, at worst is some kind weird mantra as to how a car should look ! The Fisker is designed for a specific purpose. There's an army of people who are offended by the opulence of the Fisker's design. These people were expecting a real EV, or practical utilitarian family sedan. The Karma was not designed to appeal to those buyers. It's a stunning looking GT, with a measure of EV technology. It was not designed to single handedly save the planet !
      EZEE
      • 7 Months Ago
      Meh, lets be optimistic for a change. Who knows, maybe they can get the Atlantic out and survive.
        throwback
        • 7 Months Ago
        @EZEE
        Being optimistic these days means no more cars catching fire.
      Spec
      • 7 Months Ago
      Good for them! I hope they can solve their problems and get the Atlantic out the door.
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