Tuesday, January 3, 2012

Fisker Looks to Raise $300 Million, Officially Recalls 239 Karmas

Published January 2, 2012

Last year ended on a mixed note for Fisker Automotive. While the company's first creation, the Fisker Karma, won several awards for its ground-breaking technology and styling, it was forced to recall the first 239 delivered units of the car due to fire concerns last month. Fisker and the NHTSA determined that incorrectly positioned hose clamps could potentially create an electrical short, leading to a fire. The flaw is relatively minor, caused no injuries or damage and was caught early in the car's initial production run.

Then came word that Fisker was looking to gather $300 million in its latest round fund raising, a jump from the automaker's original target of $150 million according to a document filed with the US Securities & Exchange Commission. “In the current market situation, we thought it prudent to continue this policy and raise money that was potentially available,” the company said in a statement. The carmaker has apparently raised $133 million in its latest round of funding and has secured over $1 billion in private and government funding since its inception.

The decision to go after more money is significant because Fisker is still at least one model away from profitability, and will likely rely on the success of its next offering, the more affordably-positioned Project Nina sedan to establish itself as a true success story in the plug-in car market.

Fisker officially launched its plug-in hybrid Karma in October after numerous delays. The Karma is now shipping to dealerships across the US in limited numbers and Fisker has finally logged some actual sales of its plug-in hybrid sedan. Fisker chief executive officer, Henrik Fisker, told Bloomberg last November that the automaker would begin preparing for its initial public offering once deliveries of the Karma commenced.


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