Fisker to Hold Dealer Open House on January 30 in Los Angeles to Advance Dealer Partnership Strategy

Rhea-AI Summary

Fisker Inc. announces a strategic shift to a new Dealer Partnership model, aiming to scale for Fisker Ocean deliveries and higher volume production of future models. The company plans to host a dealer open house and expects to announce commitments to the new strategy. Fisker has over 120 dealers in North America and Europe interested in the new model and has already signed up its first dealer in Europe. The transition aligns with Fisker's asset light business model and aims to offer customers no-haggle pricing on vehicles while providing dealer partners with larger market territories.

Insights

Automotive Market Analyst

The announcement by Fisker Inc. regarding its strategic shift to a Dealer Partnership model represents a significant change in its distribution strategy, which is particularly relevant in the context of the automotive industry's ongoing transition to electric vehicles (EVs). This move away from direct sales mirrors the approaches taken by established automakers, leveraging the existing dealer infrastructure to enhance market penetration and customer reach. The emphasis on no-haggle pricing and larger market territories for dealers could potentially streamline the customer experience and reduce intra-brand competition, aligning with consumer preferences for transparent and straightforward buying processes.

However, this strategy could also impact Fisker's margin structure due to the dealer markups and necessitate robust dealer support systems to maintain the brand's customer service standards. Furthermore, the expansion of dealer commitments and the expected delivery of Fisker Ocean vehicles in February could catalyze investor interest as it provides tangible evidence of the company's operational progress and market traction. The long-term success of this initiative will largely depend on the execution of the dealership onboarding process and the subsequent customer satisfaction levels.

Environmental Sustainability Analyst

Fisker Inc.'s positioning of the Ocean SUV as the electric vehicle with the lowest published carbon footprint in its class is a strategic move to capitalize on the growing consumer and investor interest in sustainable products. The use of recycled and bio-based materials, production in a carbon-neutral facility and the integration of rooftop solar panels are commendable steps towards environmental stewardship. These features not only align with the company's mission but also present a competitive advantage in the EV market where sustainability credentials are increasingly influencing consumer choices.

However, the true environmental impact of the Ocean SUV will depend on the lifecycle analysis of the vehicle, including the sourcing of raw materials, the energy mix used in the manufacturing process and the end-of-life vehicle recycling. The claim of adding up to 1,500 miles/year of range through rooftop solar panels is an innovative feature, but it is important to note that actual results will vary based on geographic and driving conditions. Stakeholders should consider these factors when evaluating the company's environmental claims.

Financial Analyst

The shift to a Dealer Partnership model by Fisker Inc. may have implications for the company's financial health. By transitioning away from direct sales, Fisker is likely aiming to reduce its capital expenditure on retail infrastructure and customer acquisition costs, which is consistent with its asset-light business model. This approach can free up resources to be invested in production scaling and development of future models. The anticipated dealer commitments and the first dealer sign-up in Europe indicate market confidence and potential revenue streams through pre-orders and vehicle deliveries.

Investors should monitor the uptake of the Dealer Partnership model and the associated costs of establishing and maintaining dealer relationships. The financial impact of this strategy will become more apparent as Fisker begins to report sales figures and dealer performance metrics. It is also essential to consider how the no-haggle pricing strategy might affect the average selling price of vehicles and the overall profitability of the company in the competitive EV market.

• Fisker will host dealers at its Manhattan Beach headquarters on January 30.
• Fisker expects to announce dealer commitments to the company’s new Dealership Partnership strategy.
• Fisker has over 120 dealers in North America and Europe who have expressed interest in signing up for the new Dealer Partnership model.
• On January 4, Fisker announced a strategic shift to dealers from direct sales to significantly scale for Fisker Ocean deliveries and higher volume production of additional future models.
• Fisker expects to deliver its first vehicles to dealers in February and has signed up its first dealer, located in Europe.

LOS ANGELES--(BUSINESS WIRE)-- Fisker Inc. (NYSE: FSR) (“Fisker”), driven by a mission to create the world’s most emotional and sustainable electric vehicles, will hold a dealer open house at its Manhattan Beach, CA headquarters on Tuesday, January 30 and expects to announce commitments to Fisker’s new Dealer Partnership strategy. The company has signed up its first dealer, located in Europe.

Fisker Inc., driven by a mission to create the world’s most emotional and sustainable electric vehicles, will hold a dealer open house at its Manhattan Beach, California headquarters on Tuesday, January 30 and expects to announce commitments to Fisker’s new Dealer Partnership strategy. The company has signed up its first dealer, located in Europe. (Photo: Fisker Inc.)

“I’m looking forward to meeting with our future dealers in person and announcing that we have signed up our first dealer partners,” Chairman and CEO Henrik Fisker said. “Over 120 dealers in North American and Europe have expressed interest in our new Dealer Partnership model, and this open house event is a very important step toward growing our business and getting more vehicles to customers in 2024.”

Following the open house, Fisker leaders, including Henrik Fisker, will attend the National Automobile Dealers Association Show in Las Vegas, held from February 1-4, and meet with additional dealers to support the Dealer Partnership strategy.

On January 4, 2024, Fisker announced that it would engage in a strategic shift from direct sales to customers in North America to an innovative Dealer Partnership model. The model combines the goal of offering its customers no-haggle pricing on Fisker vehicles (where permitted) while also providing its dealer partners with larger market territories, so they can maintain pricing without concern for local competition. The transition is aligned with Fisker’s asset light business model, which enables the company to significantly scale for Fisker Ocean deliveries and higher volume production of additional future models. The company has been in advanced discussions with numerous potential dealers and expects to deliver its first vehicles to dealers in February.

Fisker is currently delivering the all-electric Ocean SUV, which starts at $38,990, in the US, Canada, and Europe. In the US, the Ocean has an EPA range of up to 360 mi ¹, which is the longest range of any new electric SUV in its class ². The Fisker Ocean has the lowest published carbon footprint of any electric SUV, uses over 110 lbs. of recycled and bio-based materials, is built at a carbon-neutral facility, and integrates rooftop solar panels, adding up to 1,500 miles/year of range ³.

¹ EPA estimated range. Mid-size SUVs. Measurements conducted with standard 20” wheels. Actual results may vary for many reasons, including driving conditions, wheel size, state of battery charge, and how the vehicle is driven and maintained.
² Mid-size SUVs in comparable price segment.
³ Based on Fisker simulations. Ideal conditions assume solar irradiation of 5.4 kWh/m2/day and steady commuter driving. Actual results vary with conditions such as external environment and vehicle use.

About Fisker Inc.

California-based Fisker Inc. is revolutionizing the automotive industry by designing and developing individual mobility in alignment with nature. Passionately driven by a vision of a clean future for all, the company is on a mission to create the world’s most sustainable and emotional electric vehicles. To learn more, visit Fiskerinc.com and enjoy exclusive content across Fisker's social media channels: Facebook, Instagram, Twitter, YouTube, and LinkedIn.

Download the revolutionary new Fisker mobile app from the App Store or Google Play.

Forward-Looking Statements

This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” “expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, the quote from our chief executive officer, any potential future automotive original equipment manufacturer (or equipment or part manufacturer) transactions and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker's limited operating history; Fisker's ability to enter into additional manufacturing and other contracts with Magna or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed-upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker's ability to execute its business model, including market acceptance of its planned products and services; Fisker's inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker's inability to develop a sales distribution or dealership network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker's Annual Report on Form 10-K, under the heading “Risk Factors”, filed with the Securities and Exchange Commission (the “SEC”), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240129317740/en/

European Media:

Press.europe@fiskerinc.com

US Media

Fisker@GODRIVEN360.com

Customer service: Support@fiskerinc.com

Fisker Inc. Communications:

Matthew DeBord

VP, Communications

mdebord@fiskerinc.com

Franziska Queling

Regional Head of Public Relations Europe

fqueling@fiskerinc.com

Investor Relations:

Eric Goldstein

Head of Investor Relations

egoldstein@fiskerinc.com

Source: Fisker Inc.

FAQ

What is the purpose of Fisker's new Dealer Partnership model?

The purpose is to significantly scale for Fisker Ocean deliveries and higher volume production of additional future models.

How many dealers in North America and Europe have shown interest in Fisker's new Dealer Partnership model?

Over 120 dealers have expressed interest in the new model.

When does Fisker plan to deliver its first vehicles to dealers?

Fisker expects to deliver its first vehicles to dealers in February.

What is the starting price of the Fisker Ocean SUV?

The Fisker Ocean SUV starts at $38,990 in the US, Canada, and Europe.

What is the EPA range of the Fisker Ocean SUV?

The Fisker Ocean has an EPA range of up to 360 miles, the longest range of any new electric SUV in its class.