Fisker Automotive

Fisker Automotive
Company type	Private
Industry	Automotive
Founded	2007
Founder	Henrik Fisker, Bernhard Koehler, Quantum Technologies
Defunct	2013
Fate	Filed for Chapter 11 bankruptcy; assets acquired by Wanxiang Group and rebranded as Karma Automotive
Headquarters	United States
Area served	Worldwide
Key people	Henrik Fisker (Founder and Executive Chairman), Tom LaSorda (CEO 2012), Tony Posawatz (CEO 2012–2013)
Products	Fisker Karma (plug-in hybrid electric vehicle)
Number of employees	Unknown
Parent	None

Fisker Automotive was a U.S.-based car manufacturer recognized for creating the Fisker Karma, one of the pioneering luxury plug-in hybrid electric vehicles. Established in 2007 by Danish car designer Henrik Fisker, the enterprise secured significant funding from both private and public sources, including a $529 million federal loan and more than $1 billion from private investors such as the venture capital firm Kleiner Perkins.

Despite this capital infusion, Fisker Automotive encountered multiple production setbacks. Manufacturing of the Karma ceased in November 2012 after roughly 2,450 units were produced and just over 2,000 sold worldwide. The company's difficulties led The New York Times to label it the "Solyndra of the electric car industry" and a "debacle." Its federal loan was suspended in 2011, with the government recovering some funds but ultimately absorbing a $139 million loss.

In February 2014, Chinese automotive parts giant Wanxiang Group purchased Fisker Automotive's Karma vehicle design, manufacturing equipment, and a Delaware production facility. Wanxiang subsequently rebranded these holdings as Karma Automotive in 2016.

History

In 2007, Henrik Fisker co-established Fisker Automotive alongside Bernhard Koehler and Quantum Technologies, initially supported by a $5.2 million investment from Italian entrepreneur Gianfranco Pizzuto and Palo Alto Investors. Early financial backing also included venture capital from Kleiner Perkins Caufield & Byers. Fisker, a renowned automotive designer with experience at premium brands such as Aston Martin—where he served as design director and board member—brought valuable industry knowledge to the startup.

Prior to founding Fisker Automotive, Fisker and Koehler departed Aston Martin in 2005 to create Fisker Coachbuild, specializing in custom coach-built cars utilizing chassis and powertrains sourced from Mercedes-Benz and BMW. This initiative provided a foundation for Fisker Automotive's evolution into full-scale vehicle manufacturing.

By 2009, Fisker revealed intentions to develop a more affordable plug-in hybrid aimed at producing 100,000 units annually in the United States, contingent upon obtaining a Department of Energy loan.

In 2008, Tesla Motors filed a lawsuit against Fisker Automotive alleging misappropriation of trade secrets related to the development of the Fisker Karma. The conflict was resolved in 2009 with Tesla ordered to pay Fisker over $1.1 million in legal expenses.

Operational difficulties emerged for Fisker beginning with battery recalls from supplier A123 Systems in late 2011 and early 2012, further exacerbated by A123’s bankruptcy filing in August 2012. These challenges resulted in a production halt exceeding five months, delayed the launch of their second model—the Fisker Atlantic—and put new vehicle development on hold.

Leadership transitions followed: Tom LaSorda was appointed CEO in February 2012 while Henrik Fisker assumed the role of executive chairman. Six months later, Tony Posawatz, formerly GM’s Vehicle Line Director for the Chevrolet Volt, succeeded LaSorda as CEO.

In October 2012, Hurricane Sandy destroyed Fisker's entire European shipment of 338 Karmas at Port Newark, inflicting a $30 million loss. Investigations cleared the company’s lithium-ion batteries of any defect. After insurer XL Insurance America denied coverage for the damages, Fisker initiated legal action and subsequently reached an out-of-court settlement.

Henrik Fisker stepped down as CEO in March 2013 amid strategic disagreements. Shortly thereafter, Fisker laid off approximately 75% of its workforce during ongoing negotiations with investors.

In October 2013, Hybrid Technology LLC purchased Fisker's defaulted government loan at a significant discount. In November 2013, Fisker filed for Chapter 11 bankruptcy and agreed to be acquired by Hybrid Technology, owned by Hong Kong billionaire Richard Li. However, Chinese parts manufacturer Wanxiang Group submitted a competing bid backed by creditors; Wanxiang also owned A123 Systems and was partially blamed by Fisker for its operational failures.

Wanxiang prevailed in the February 2014 bankruptcy auction with a $149.2 million offer that substantially surpassed earlier bids and recovered $53 million of the Department of Energy’s $192 million loan.

Following bankruptcy proceedings, Henrik Fisker retained ownership of the company’s logo and trademarks while Wanxiang rebranded acquired assets as Karma Automotive, launching the Karma Revero plug-in hybrid based on the original Karma design. Henrik Fisker later founded another electric vehicle company, Fisker Inc., in 2016 utilizing the same branding.

Fisker Karma

The Karma represented a plug-in hybrid luxury sports sedan developed by Fisker Automotive and assembled by Valmet Automotive in Finland. Following several postponements since late 2009, the first deliveries in the United States commenced in July 2011, with retail availability beginning in November of the same year.

Each vehicle was equipped with a 20.1 kWh lithium-ion battery supplied by A123 Systems, based in Massachusetts. The aluminum chassis was designed by Fisker and produced by Norsk Hydro in Norway. Fisker Automotive handled the interior design, while manufacturing was carried out by Magna International of Canada. The EVer powertrain, a series hybrid system generating over 400 horsepower, drew inspiration from Quantum Technologies, an early investor and co-founder of Fisker. In 2016, a revamped version was introduced as the Karma Revero by Karma Automotive.

Fisker Sunset

At the 2009 Detroit Auto Show, Fisker showcased the Sunset—a short wheelbase hardtop convertible variant of the Karma developed for potential mass production.

Fisker Surf

During the 2011 Frankfurt Auto Show, Fisker revealed the Surf, a station wagon concept derived from the Karma platform. This body style was part of Fisker's initial design intentions. The company described the Surf as combining sports car performance with station wagon utility, drawing inspiration from vehicles such as the Jensen Interceptor and Lamborghini Espada. In August 2012, Fisker announced that development on both the Sunset and Surf concepts was paused to focus resources on advancing the mid-sized Atlantic sedan.

Fisker Atlantic

The Atlantic was Fisker's proposed midsize sedan targeting competitors like the Audi A5. Known internally as "Project Nina," it featured an agreement with BMW to supply turbocharged 2.0-liter four-cylinder engines paired with a plug-in hybrid system similar to that of the Karma.

Sales

By February 2012, Fisker had established a network of 45 dealerships across the United States and three in Canada. By March 2012, production had surpassed 2,450 units, with over 2,000 vehicles delivered by the end of that year. Vehicles were sold through traditional dealership channels and distributed internationally via partnerships with five importers: GP Supercars (Italy), Nellemann (Denmark), Emil Frey Group (Switzerland), BD Otomotive (Turkey), and Al-Futtaim Group serving the Middle East and North Africa.

Manufacturing

Fisker Automotive maintained key functions such as design, engineering, and marketing internally but outsourced manufacturing for its debut model, the Fisker Karma. This strategy reduced development time to approximately two to three years—significantly shorter than the typical five years—and lowered expenditures to $333 million instead of an estimated $1 billion. The company asserted it could achieve profitability by selling just 15,000 units. To minimize costs further, Fisker incorporated pre-existing components from other manufacturers—for example, using General Motors door handles under royalty agreements rather than developing parts independently. Nevertheless, complications arose when A123 Systems’ battery issues—including failures, recalls, and eventual supplier bankruptcy—led to costly manufacturing challenges that contributed to Fisker's financial collapse.

In 2008, plans were made to produce 15,000 vehicles annually at Valmet Automotive's plant located in Uusikaupunki, Finland. Production started in 2011 but ceased by the third quarter of 2012.

In October 2009, then-Vice President Joe Biden participated in announcing Fisker's intention to purchase the Boxwood Road Plant (previously General Motors' Wilmington Assembly) in Delaware with hopes of initiating production there by late 2012. This plan did not come to fruition; eventually, the facility was demolished.

Funding

Among Fisker Automotive's backers were notable figures and entities such as Leonardo DiCaprio, Palo Alto Investors, Kleiner Perkins Caufield & Byers, Qatar Holdings, LLC, A123 Systems, and Ace Investments.

In April 2012, Fisker successfully obtained $392 million in new capital, supplementing the $850 million previously gathered from private financiers. Following the acquisition of the Department of Energy loan note in November 2013, Hybrid Technology LLC became a primary creditor. Altogether, Fisker amassed over $1 billion through private funding channels.

The company was granted a conditional loan of $528.7 million in September 2009 under the Department of Energy's US$25 billion Advanced Technologies Vehicle Manufacturing Loan Program (ATVM). Of this amount, $192 million was utilized for engineering development on the Fisker Karma and Project Nina (which was later renamed the Fisker Atlantic).

Nonetheless, in August 2012, the DOE suspended Fisker's access to its credit facility due to disagreements regarding loan milestone achievements. The loan attracted criticism because it supported luxury automobiles viewed as unaffordable for the average consumer. Fisker investor Ray Lane suggested that much of the negative attention stemmed from political factors related to an election year.

External links

Henrik Fisker website
Official Fisker Automotive website (Archive)