Fisker Suspends Karma Production After Battery Supplier Files for Bankruptcy
The biggest appeal Fisker has over its competitors in the market is the fact that it runs on electricity. But what good is it if your cars don’t have batteries in them?
Fisker found that out first-hand after the company in charge of manufacturing its batteries recently filed for bankruptcy, thus leading to the company suspending production the Karma, its $100,000 luxury plug-in hybrid.
There should come a point in time when Fisker’s sole battery supplier, A123 Systems, gets its books straightened out, but the concern for Fisker is the time being wasted waiting for manna to drop from the heavens in the form of either getting some financial assistance from the feds or a buyer stepping into the picture and purchasing the battery manufacturer outright.
Either scenario could take long time, especially considering that A123 has already gotten some federal support in the past, thus giving the latter the provision to give the green light on any potential buyer in the future.
Whatever the case may be, this new development came at the worst possible time for Fisker, particularly because the Karma’s debut in China could be delayed. We all know how big the Chinese market is and how many eager Chinese people are to plunk down money to get behind the wheel of an electric sports car.
With A123 Systems currently in bankruptcy, Fisker apparently has no other choice than to temporarily suspend production of the Karma.
Here’s to hoping that everything gets straightened out and everyone involved can return to regular business.