Fisker Suspends Karma Production After Battery Supplier Files for Bankruptcy

2011 Fisker Karma
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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.


Source: Reuters

What do you think?
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  (305) posted on 11.30.2012

i still find it difficult to justify trust when they had so many problems. pulling out of them might just stop at a certain point, and i would not risk that.

  (302) posted on 11.30.2012

alex is right. fisker just is followed by lots of bad luck.

  (312) posted on 11.30.2012

i think fisker are trustworthy. they have a good relation with their customers and they listen to their complaints and change what is wrong.

  (305) posted on 11.30.2012

in order to provide customer support, you need a customer. and that is hard to come by if you are not trustworthy!

  (422) posted on 11.30.2012

if they can provide customer support no matter what, then they should be ok!

  (452) posted on 11.30.2012

reliability is something people look after. and paying 100.000$ for a car and not being sure of the company’s future does not do good for sales.

  (475) posted on 11.30.2012

the fisker looks like a very good car. but all the problems the company has make it a bit unreliable.

  (542) posted on 11.30.2012

john, they also had some technical problems, if you were mentioning all that was wrong.

  (509) posted on 11.30.2012

first financial problems, not this. fisker sure does not have a good time.

  (516) posted on 11.30.2012

yep, it didn’t. and that is a shame, because their car is a very good one!

  (542) posted on 11.30.2012

nice word game there! but you are right, fisker has not had the best of luck.

  (516) posted on 11.30.2012

the karma is a great car, but it’s karma is not one of the best. best wishes to fisker!

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