The Fisker Atlantic prototype during its unveiling in New York last spring.
While it could make the difference between long-term success or failure, start-up battery-car maker Fisker Automotive is pushing back the planned launch of its second product line, the maker’s new chief executive has told investors, possibly to as late as 2015.
That’s a setback for the company that, only recently, had hinted it might begin testing a prototype of the vehicle, to be dubbed the Fisker Atlantic, by early next year. On the positive side, the California-based maker of plug-in hybrid sports cars has learned that its battery supplier won’t be going out of business as some had feared.
But the latest apparent delay could be a serious problems for the maker as the Atlantic is designed to be its first truly mainstream product and its primary source of revenue in the mid-term future.
Fisker began production of its first model, the Karma, earlier this year, months behind schedule. In turn, that led the Department of Energy to freeze a $529 million loan it had approved under a program designed to encourage the development of energy-efficient automobiles. At the time, Fisker had drawn down only about $193 million of that money, most of it used for developing the smaller, less expensive Atlantic.
“The Atlantic is really the volume car that begins to build growth,” CEO Tony Posawatz reportedly said during a conference call with investors. “It creates a business model that is one where we can really generate cash in the future.”
But while a prototype of the Atlantic was unveiled during a private event prior to last April’s New York Auto Show, the project has been slipping further and further behind schedule as Fisker officials – including founder Henrik Fisker, a Danish automotive designer – had to go searching for private capital to replace the frozen DoE loan money.
The maker indicated it has come up with about $300 million since last December. And though it is not disclosing specific financial targets, recent pronouncements, including comments during the investor call, suggest it is still struggling to get together the money needed to complete development of the Atlantic and tool up a former General Motors factory in Delaware where the vehicle will be assembled.
Also uncertain are details of the smaller car which, at an estimated $55,000, should be just slightly more than half the current price of a Fisker Karma. Both models intend to appeal to potential buyers with their sexy, exotic styling, a trademark of other designs by Henrik Fisker that include the Aston Martin DB9.
The new model is expected to be similar in size to a BMW 5-Series sedan. And it is likely to use a BMW “range-extender” engine to back up its lithium-ion-powered electric motors. The current Fisker Karma relies on an inline-four engine sourced from General Motors.
The Karma has run into a number of issues since its launch, beyond the slow ramp-up of production at a factory in Finland. Early models experienced a defect with their battery pack that forced a recall. A second recall occurred following a fire linked to a battery cooling system.
The plug-in hybrid has, meanwhile, received mixed reviews, generally praised for its styling but faulted for its hefty weight and other issues. Among those criticizing the Fisker Karma have been influential Consumer Reports magazine.
On the other hand, Fisker has received endorsements from a number of celebrities including early buyer Leonardo DiCaprio. And one of the plug-ins will soon appear in the newest film by Harrison Ford, called “Paranoia.”
That term might have better described concerns about the fate of Fisker’s battery supplier, Massachusetts-based A123 Systems, in recent weeks. The cash-short manufacturer finally declared bankruptcy on Tuesday – but by selling its automotive operations to auto mega-supplier JCI it has ensured a continuing supply of batteries to Fisker and other carmaking customers, resolving at least one nagging problem that could have caused even further issues for the California-based plug-in maker.
(For more on the latest developments with A123, Click Here.)