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Fisker wants $5,000 nonrefundable downpayment to buy Ocean One

In a March press release, Fisker Automotive said it had surpassed 40,000 reservations for its Ocean SUV and would "open pre-order reservations for the limited-edition Fisker Ocean One on July 1, 2022, due to anticipated demand." Later in the same release, CEO Henrik Fisker said, "Our goal is to be completely transparent with our customers. ... We don’t want reservation holders who expect to purchase a Fisker Ocean One to be disappointed, so we are providing them now with the opportunity to secure their vehicle." Those anticipating the chance to buy an Ocean One might not have been disappointed by the e-mail Fisker sent this week, but they certainly would have been surprised. As reported by Electrek, turns out the offer of "pre-order reservations" was actually an invitation to pay a $5,000 nonrefundable downpayment for an Ocean One. As in, this isn't a reservation, this is the beginning of the purchase process, and a change of heart won't get the money back.   We need to make three things clear. First, this only applies to the limited-edition, $69,000 Ocean One. Shoppers interested in the serial production Ocean are fine with their $250 deposit. Second, Fisker isn't the first EV maker to ask a healthy four-figure deposit. When Lucid unveiled the production version of the Air, it took reservations from $300 to $7,5000 depending on trim. Of course, the key difference is that all of Lucid's reservations were refundable. Third, it's not like there aren't thousands of people buying cars sight-unseen nowadays. GMC Hummer EV and Ford F-150 Lightning buyers reserved, then paid for, then laid eyes on their rigs. And between the herds of car flippers and shoppers just trying to get the new vehicle they want, folks are not only buying sight unseen online, they're driving hundreds of miles to do it. With that out of the way, let's say we still think this is an, ahem, gutsy move on Fisker's part. Established automakers with a century of production knowledge and gold-plated supplier relationships can't get vehicles built in a timely manner. Nascent EV makers like the aforementioned Lucid, as well as Rivian, are more likely to announce production cuts or delays than a production milestone. Case in point, Fisker planned to have its contracted Ocean builder, Magna, running the Ocean down lines at the end of last year.

Over 40,000 customers reportedly cancel their Fisker Ocean reservation

Fisker's ongoing financial troubles have reportedly scared off a substantial number of the buyers who reserved the electric Ocean crossover with a refundable deposit. The company has lost more than 40,000 reservations that it will need to reimburse, according to a recent report. Citing leaked data and internal metrics, Business Insider wrote that Fisker received between 70 and 80 cancellations per day "in a recent seven-day average." The total number of canceled reservations stands at over 40,000, the report said, which represents a huge chunk of the reported 70,000-plus reservations the firm has collected since it opened the order book in November 2019. Fisker hasn't commented on the report. If this is accurate, the cancellations compound Fisker's problems in several ways. First, the brand's sales forecast has seemingly fallen by over 50%, meaning its revenue forecast has inevitably dropped by the same number. This comes at a time Fisker needs to generate more sales in order to stay afloat; it recently paused production of the Ocean to save money, and it's sitting on a massive inventory of unsold cars. Second, Fisker will need to refund the deposit it collected from every reservation holder who cancels, according to Business Insider and the brand's terms and conditions. It costs $250 to reserve one example of the Ocean and $100 for each additional reservation; both sums are refundable. Fisker keeps the $25 processing fee that's added to every reservation, however. The publication estimates Fisker owes its customer base about $9 million. It adds that "a few thousand" customers have separately canceled an order, though the $5,000 deposit on those isn't fully refundable. It's not far-fetched to assume some of the customers who reportedly canceled a reservation realized they can get a new Ocean right away for much cheaper than initially advertised — Fisker slashed the price of its leftover 2023 models by up to $24,000 in March 2024 to trim its inventory of unsold cars and generate cash. Other customers might have simply lost faith in a company teetering on the brink of bankruptcy. While the Ocean, which is built by Magna in Austria, is the only Fisker model that has reached production, the company has shown three other electric cars that it began taking reservations for and ostensibly planned to sooner or later build. There's a pickup called Alaska, a city car named PEAR, and a four-door convertible known as the Ronin.

Karma will build engineering, sales offices near Detroit

Karma Automotive, the successor to the Fisker brand of high-end extended-range plug-in vehicles, appears to be looking to plan its rebirth in the heart (or the lion's den, some would say) of the US vehicle industry. The company, which was acquired out of bankruptcy by China-based Wanxiang in 2014, is planning to build its engineering and sales offices in Troy, Michigan, Automotive News says, citing the Michigan Economic Development Corp. The $3.6-million development will house as many as 150 workers. Karma officially changed its name from Fisker last year, as the Fisker moniker is affiliated with the coach-building company run by Henrik Fisker. The automaker is slated to unveil its new vehicle, called the Revero, by the end of the year. That car is expected to be somewhat similar to the original Karma, including its sleek design, the use of a 2.0-liter engine, and 33-mile all-electric range. No price for the new model, which is expected to remain firmly in the luxury sector, has been disclosed. Karma will receive $450,000 from the Michigan Business Development Program in order to help build the facilities in Troy. Karma also has a 556,000-square-foot vehicle-assembly plant in Moreno Valley, CA, about 65 miles east of Los Angeles. The former Fisker Automotive, which had been based in Orange County, CA, was founded in 2007. The company had plans to make a second model called the Atlantic, and once estimated that it could make 100,000 vehicles a year. FisKer Automotive produced its $100,000-plus vehicles until 2012 before going bankrupt. Wanxiang acquired Fisker for $149.2 million, beating out Hong Kong-based Hybrid Tech Holdings in an extensive bidding war. Related Video: Featured Gallery 2012 Fisker Karma: Second Drive View 30 Photos News Source: Automotive News-sub.req. via Crain's Detroit Business Green Fisker Electric Detroit Michigan karma karma automotive revero