Fisker Karma

[ipdamages]

For me the deal killer was that the car ended up losing green cred to the point that it was not green sticker compliant in California. Remember that half of the Model Ses sold to date have been sold to Californians. For me being in the HOV lane is critical.

I am one who has always liked the look of the Karma. Its hugeness is just like the Model S and Panamera, which are too big for me, but obviously not too big for lots of people. If they had delivered the promised specs and been eligible for California stickers, I think they could have survived.

I agree with the points about car guys and startup guys, but no amount of cunning was going to make the Karma a go with those specs. Even with the cars now selling for half off I'm not interested, and obviously few others are. Of course the uncertainty around service is a huge downer for would be buyers, but I think the green compromises were fatal.

 

[doug]

I think Reuters has had the best reporting on the Fisker fiasco these past several months. Today they published a couple new articles:

1.) Special Report: Bad Karma: How Fisker burned through $1.4 billion on a 'green' car | Reuters

This is a comprehensive article that doesn't contain much new information for those who have been following. There are just a few extra color detail such as the following:

Henrik Fisker and co-founder Koehler were pulling down handsome salaries — $600,000-$700,000 a year, according to several sources familiar with Fisker's executive compensation — even after the company began laying off hundreds of employees in late 2011 and early 2012.

Considerable sums were used to burnish the image of the company as well as Henrik himself.

In May 2011, the company co-sponsored a pre-race grand prix party aboard a 146-foot yacht moored in the Monte Carlo harbor. Guests drank glasses of champagne served with flecks of gold. Clad in a dark pinstripe suit and open-neck white shirt, Henrik Fisker navigated a crowd that included Prince Albert of Monaco, whom he described as the inspiration for the Karma. The next day, Fisker took the prince for a ride on the race course in a prototype Karma.

The Monaco weekend, according to several sources familiar with the event, cost Fisker between $80,000 and $100,000. That wasn't lavish by auto-marketing standards, but by this point every penny mattered. Within weeks, the Energy Department stopped payments on its loan.

2.) Fisker's China (dis)connections | Reuters

This one provides some insight in Fisker's botched attempts to find a buyer in China.

By betting on the wrong company as its potential white knight, Fisker may have bungled an opportunity to raise hundreds of millions of dollars. Fisker's board sent out at least two search teams, but proceeded without a clear roadmap or coordination between the teams, those knowledgeable individuals told Reuters.

 

[dennis]

5 Fisker Karma owners got a chance to tour the Tesla factory yesterday and take test drives in the P85+. All were impressed.

I was struck by what Tesla has been able to accomplish with their $1.5B in capital, vs. what Fisker did not accomplish with their $1.4B. A startup vs. big car company mentality and an engineering vs. design/marketing focus were the difference makers IMO.

 

[AnOutsider]

Countdown to this photo being used in a random "Tesla to buy Fisker?" article.

 

[vfx]

My eyes.

 

[vfx]

Saw a Fisker in a movie trailer this weekend. Positioned as an awesome high end car. I uncontrollably let out a yelp.

 

[rolosrevenge]

The plot of the movie will revolve around the fact that the heist went sour when the car stopped working and left them stranded so they couldn't get away...

 

[jeff_adams]

Is Tesla gonna take trade-ins and sell them to Bob Lutz?

 

[strider]

5 Fisker Karma owners got a chance to tour the Tesla factory yesterday and take test drives in the P85+. All were impressed.

I was struck by what Tesla has been able to accomplish with their $1.5B in capital, vs. what Fisker did not accomplish with their $1.4B. A startup vs. big car company mentality and an engineering vs. design/marketing focus were the difference makers IMO.

Cool pic dennis, thanks for posting.

 

[spatterso911]

I'm still hoping something positive happens for the 2000+ owners who were left high and dry by Fisker and many of it's dealerships.

 

[rolosrevenge]

I'm still hoping something positive happens for the 2000+ owners who were left high and dry by Fisker and many of it's dealerships.

But I thought dealerships were there for the customers even when the automaker when bust...

- - - Updated - - -

Henrik Fisker and co-founder Koehler were pulling down handsome salaries — $600,000-$700,000 a year, according to several sources familiar with Fisker's executive compensation — even after the company began laying off hundreds of employees in late 2011 and early 2012.

Just another stark difference between Tesla and Fisker, while Elon took no salary, and poured his last bit of personal cash into the company to keep the lights on during their toughest spot, Henrik was living it up as much as possible on the investors' dime.

 

[brianman]

Countdown to this photo being used in a random "Tesla to buy Fisker?" article.

One key difference of course is that you can't take that same picture today in reverse. It's not because the cars aren't available, it's because the backdrop is not.

- - - Updated - - -

I'm still hoping something positive happens for the 2000+ owners who were left high and dry by Fisker and many of it's dealerships.

Agreed.

 

[brianman]

Saw a Fisker in a movie trailer this weekend. Positioned as an awesome high end car. I uncontrollably let out a yelp.

What do you expect from the fantasy industry.

In the sequel, they'll paint flames on the side so it will appear to go even faster.

 

[ipdamages]

I've seen two new Karmas, with Fisker Santa Monica plate cards, in the past few days, driving around town. I couldn't help but wonder how much of a discount those buyers got.

 

[Palpatine]

Henrik Fisker and co-founder Koehler were pulling down handsome salaries — $600,000-$700,000 a year, according to several sources familiar with Fisker's executive compensation — even after the company began laying off hundreds of employees in late 2011 and early 2012.

Just another stark difference between Tesla and Fisker, while Elon took no salary, and poured his last bit of personal cash into the company to keep the lights on during their toughest spot, Henrik was living it up as much as possible on the investors' dime.

Even now Elon is only drawing a salary of about $39,000 per year plus he got a $6,000 bonus for 2012.

He invested all in and fully deserves the financial rewards now of the stock going up so much. He took more risks than anyone.

 

[doug]

They seem to be going for around $55K these days.

 

[Yggdrasill]

A dealer here has two new Karmas for sale. I don't think they've dropped the price at all.

Surprise, surprise, they're not selling.

They probably received them from Fisker less than 6 months ago, so I'm sure it must suck to accept that they've lost something like USD100-200k.

 

[vfx]

They seem to be going for around $55K these days.

Perfect response for whiners complaining about the Tesla's "$100K" price.

 

[richkae]

A dealer here has two new Karmas for sale. I don't think they've dropped the price at all.

Surprise, surprise, they're not selling.

They probably received them from Fisker less than 6 months ago, so I'm sure it must suck to accept that they've lost something like USD100-200k.

I wonder if the dealer is providing superior customer service that couldn't be provided by a factory store - like not telling the potential customers that the cars with the non-discounted $100k pricetag come from a manufacturer in the throes of bankruptcy.

 

[SoCalGuy]

They seem to be going for around $55K these days.

I know two non-FA dealers in LA/OC that have sold about a dozen or so used Karmas in the mid $60s. A used Karma in decent condition is clearing (at least in SoCal) for about $64-70K, and I've seen a few new Karmas (e.g. less than 50 miles on odo) that have traded in the $70-80K range in the last two months (I've been looking for a while for a second Karma).

Trade in value for those that take it is between $50-60K.

EDIT: A fellow owner of mine pointed out that while the Karma has lost a lot of market value due to FA's uncertain future, it has held up reasonably well, all things considered - one point in support of this is resale value of 2012 Mercedes S-Class (a quick search on AutoTrader showed 11 2012 S-Classes listed between $56-65K, for a car that retailed $90-110K with a proven luxury automaker).