Karma Automotive, California's First and Only Ultra-Luxury Automaker, Takes the Spotlight at Monterey Car Week with Three Milestone Announcements

Rhea-AI Summary

Karma Automotive, California's first and only ultra-luxury automaker, made three significant announcements at Monterey Car Week:

• Global premiere of the Karma Ivara 'GT-UV' Design Study
• Global premiere of the Karma Kaveya super coupe with production-ready interior
• Announcement of a bilateral collaboration with Intel Automotive (INTC)

The Karma Kaveya, due in 2026, will be the first production vehicle built on Software-Defined Vehicle Architecture (SDVA), co-developed with Intel. Karma will return to the market in Q4 2024 with the 3rd Generation Karma Revero, offering 150 examples priced from below $150,000. The company aims to benchmark American ultra-luxury vehicles and adapt powertrains quickly to market demands.

Positive

• Collaboration with Intel Automotive to co-develop Software-Defined Vehicle Architecture (SDVA)
• Launch of new ultra-luxury vehicles: Karma Ivara and Karma Kaveya
• Return to market in Q4 2024 with 3rd Generation Karma Revero
• Flexible powertrain options including pure EV and E-REV (Energy-Range Extended Vehicle)
• Potential for business-to-business SDVA solutions for other OEMs

Negative

• production of only 150 examples for the 3rd Generation Karma Revero
• High pricing strategy with Karma Kaveya estimated from $300,000 USD
• Delayed launch of Karma Kaveya until 2026

Insights

Automotive Industry Analyst

Karma Automotive's announcements signify a bold re-entry into the ultra-luxury market. The unveiling of the Ivara "GT-UV" and Kaveya super coupe demonstrates the company's commitment to innovative design and cutting-edge technology. The collaboration with Intel on Software-Defined Vehicle Architecture (SDVA) is particularly noteworthy, potentially revolutionizing vehicle electronics and positioning Karma as a technology leader.

However, Karma faces significant challenges. The ultra-luxury market is fiercely competitive, dominated by established brands. Karma's production numbers (150 Reveros priced below $150,000) suggest a niche strategy, which may limit growth potential. The company's flexible powertrain approach (EV and E-REV) is pragmatic but could dilute its brand identity in the increasingly EV-focused luxury segment.

Investors should closely monitor Karma's ability to execute on its ambitious plans and gain traction in the market, particularly given its previous financial struggles and restructuring.

Technology Innovation Expert

Karma's partnership with Intel to develop Software-Defined Vehicle Architecture (SDVA) is a game-changing move. This approach could significantly reduce complexity and improve efficiency in vehicle electronics, addressing longstanding industry challenges. The potential for dynamic workload management between central and zonal compute systems is particularly innovative, offering improvements in energy efficiency and system flexibility.

The commitment to open standards for SDVA could position Karma as a key player in shaping future automotive technology. However, the success of this initiative depends on widespread industry adoption and Karma's ability to effectively implement the technology in its vehicles.

While promising, investors should be aware that pioneering new technologies carries inherent risks, including potential delays, integration challenges and the need for significant R&D investment. Karma's ability to balance innovation with practical implementation will be important for the success of this venture.

Luxury Market Analyst

Karma's strategy to position itself as California's only ultra-luxury automaker taps into the allure of exclusivity and American heritage. The company's focus on personalization and attention to detail, particularly evident in the Kaveya's interior, aligns well with ultra-luxury consumer expectations.

However, the ultra-luxury automotive market is intensely competitive and brand-driven. Karma will need to overcome its brand recognition and establish a strong identity to compete with established players. The pricing strategy ($300,000 for the Kaveya) places it in direct competition with prestigious brands that have loyal customer bases.

The collaboration with Master & Dynamic for in-car audio is a smart move, leveraging brand synergy in the luxury space. Yet, Karma's success will ultimately depend on its ability to deliver a truly exceptional product and customer experience that justifies its premium positioning. The production numbers may help maintain exclusivity but could also limit market impact and profitability.

• Global Premiere of Karma Ivara "GT-UV" Design Study
• Global Premiere of Karma Kaveya Super Coupe with Production-Ready Interior
• Global Announcement of Bilateral Collaboration with Intel Automotive

CARMEL VALLEY, Calif., Aug. 16, 2024 /PRNewswire/ -- Today at The Quail, a Motorsports Gathering, Karma Automotive celebrates two Global Premieres: the Karma Ivara "GT-UV" Design Study, and the Karma Kaveya super coupe with production-ready interior. Together these vehicles telegraph the brilliant future of California's first and only ultra-luxury automaker.

Karma Automotive, California's First and Only Ultra Luxury Manufacturer, Takes the Spotlight at Monterey Car Week

Further, Karma Automotive has announced that the Karma Kaveya will be the first vehicle to be produced resulting from its bilateral collaboration with Intel Automotive. Due in 2026 with butterfly-doors and up to 1,000HP of pure electric power, Kaveya is expected to be the globe's first production vehicle built upon Software-Defined Vehicle Architecture (SDVA), co-developed with Intel Automotive, which will underpin all Karma vehicles from the Kaveya onward. In addition to deploying SDVA throughout its upcoming model range, together with Intel Automotive, Karma Automotive will benchmark, demonstrate and validate critical concepts for the advancement of open standards for SDVA that can be shared openly and commercially to support the transformation of the broader automotive industry.

"Auburn, Duesenberg, and Packard are Karma Automotive's inspiration because they harken back to an era we aim to repeat, an era when American ultra-luxury set the benchmark for the world, and when the steep prices they commanded were justified not only by the beauty and speed of their cars, but also their brains and engineering prowess found nowhere else in the industry," says Marques McCammon, President, Karma Automotive. "The intellect of Karma's vehicles will be several steps ahead, creating distinctive, unique, and engaging automobiles which return a valid paradigm of value that's been absent from the ultra-luxury segment for nearly a century."

Karma Automotive will first return to the marketplace in the 4^th Quarter, 2024, with the 3^rd Generation Karma Revero, offering just 150 examples priced from below $150,000 USD. Revero is the globe's first luxury plug-in hybrid and utilizes Karma's E-REV (Energy-Range Extended Vehicle) powertrain, an appealing option for an Original Equipment Manufacturer (OEM) amid potential, near-term fluctuations in client and market demand for pure Electric Vehicles (EV).

"While the Karma Kaveya will be a pure EV, the Karma Ivara is being developed as either a pure EV, or an E-REV, potentially with a charge port aft of the front driver's side wheel, flanked by a gasoline cap on the other," says McCammon. "Karma Automotive can adapt its powertrains quickly and nimbly in response to the shifting demands of our clients and the marketplace, further ensuring our longevity and success."

Global Premiere: Karma Ivara "GT-UV" Design Study
The Karma Ivara Design Study establishes a new segment of multi-terrain capable vehicle, the "GT-UV," or Grand Touring Utility Vehicle, delivering a dramatic four-seater concept unseen before in the ultra-luxury segment, or anywhere else.  

Karma Automotive's signature Comet Line draws exotic proportions, spanning the entire width of the Ivara to accentuate the steeply-raked windshield, tracking around the cabin, then continuing through the widest point of the rear fenders. The secondary Comet Line separates the all-black upper cabin section with full panoramic roof from the lower body, the Ivara capturing a visual tension resembling an arrow drawn back in its quiver, ready to launch. The Ivara's front fascia reflects the new face of Karma Automotive, lacking a traditional grille with concealed headlamps, its low nose and hood emulating a supercar stance, its fast rear glass reiterating its driver-focused purpose.  

Utility is also within Ivara's remit, as demonstrated by its protective matte undertray finished with self-healing paint, achieved through microscopic segments which create a rebound effect from lesser impacts.

Global Premiere: Karma Kaveya with Production-Ready Interior
Presently undergoing development testing and anticipated for 2026, the Karma Kaveya is draped in carbon fiber bodywork with butterfly doors, offering up to 1,000HP of pure electric power with estimated pricing from $300,000 (USD). At Monterey Car Week, the Kaveya's production-ready interior breaks cover, demonstrating the company's fastidious attention to detail and exceptional capability for personalization.

The central hallmark of Karma Automotive's new design language is the Comet Line, which forms a wake from the Kaveya's nose through its bonnet, enshrouding its cockpit then tapering downwards to its conclusion through the butterfly doors, capturing an aura akin to a stealth jet. Its interior, evocative of spaceflight, is built to suit each client's every demand in concert with Karma Design, and Kaveya's interior atmosphere will benefit from the first-ever in-car audio system by luxury audio brand, Master & Dynamic.

The interior of the Karma Kaveya as specified for its Global Premiere draws inspiration from Alchemy; the interaction of interior surfaces and textural contrasts between gloss black, suede and leather, punctuated by metallic elements that quietly shimmer orange and blue, as if fired in a kiln.  Midnight blue leather produced in partnership with Bridge of Weir conjures the vastness of outer space, completing a cohesive narrative from the Kaveya's exterior Comet Line and "Interstellar Silver" paintwork through to its interior. Non-essential displays remain hidden until summoned, following a "reductionary" approach that enables the driver to remain focused on the pleasure of driving.

Global Announcement: Bilateral Collaboration with Intel Automotive, Software-Defined Vehicle Archtecture (SVDA) Explained

Karma Automotive has announced its bilateral collaboration with Intel Automotive to co-develop Software Defined Vehicle Architecture (SVDA). 

Since the invention of the automobile in 1888, its architecture has remained relatively unchanged: powertrains have become more powerful and efficient, and vehicle safety has greatly improved, but the format has stayed largely the same. With the addition of each new feature from fuel injection and power windows to air-conditioning and Advanced Driver Assistance Systems (ADAS), today's vehicle typically has over 100 Electric Control Units (ECUs), each delivering a single function, requiring over a mile of copper cabling to connect. Layer upon layer has been piled atop a foundation which can no longer support the future of the automobile. The solution can be found in the Information Technology (IT) industry, which long ago moved away from single function devices to high-performance computing systems where multiple workloads run on a single, centralized system. Similarly, SVDA looks at the vehicle systems as a whole, and allows for the seamless movement of workloads between software-defined central "compute" systems and software-defined zonal "compute" sub-systems, ensuring maximum flexibility, optimal cost and performance with significant energy efficiency benefits.

As an example, many EVs – even when switched "off" – support a feature that still monitors the external cameras for security threats or to recognize the driver as they approach. Typically, this feature is supported on the vehicle's in-cabin "compute" subsystem, which due to its high-power consumption, puts unnecessary drain on the battery even when the vehicle is off. This workload doesn't have to stay resident on the software-defined central "compute" system. Using Intel's software-defined zonal controllers to handle camera streams, data center application orchestration concepts can be embraced and migrate the workload to a lower-power device (in this case the zonal controller) and wake the central compute system only when needed. It would save energy, improve efficiency and reduce the total number of electronic control units (ECUs) in the vehicle by consolidating workloads dynamically onto a software-defined zonal controller.

About Karma Automotive
Karma Automotive is California's first and only ultra-luxury automaker, manufacturing electric and E-REV (Extended Range Electric Vehicles) at its production facility in Moreno Valley, CA, with its executive and design headquarters in nearby Irvine, CA. The Karma portfolio embodies California's spirit of innovation and entrepreneurial boldness, reflected by the signature Comet Line which is the central hallmark of Karma's new design language. The 3^rd Generation Karma Revero sport sedan, the world's first luxury plug-in hybrid, will be introduced in 4^th Quarter 2024, offering luxury balanced with conscientiousness delivered without compromise. The Gyesera four-seater is anticipated in 2025, and in 2026, the Karma Kaveya super coupe, with up to 1,000HP and butterfly-doors, will arrive. In August, 2024, Karma Automotive announced its bilateral collaboration with Intel Automotive to co-develop Software Defined Vehicle Architecture (SDVA) which will underpin its upcoming vehicles beginning with the Karma Kaveya. Further, Karma Automotive will provide Tier 1's and Original Equipment Manufacturers (OEMs) with business-to-business SDVA solutions, as it does today with Karma Connect, its proprietary Vehicle Data Management and Over the Air services platform, which presently provides services to the world's second largest OEM. Karma Automotive's dealer network spans North America, Europe, South America and the Middle East.

About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore's Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers' greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel's innovations, go to newsroom.intel.com and intel.com.

© Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

(www.karmaautomotive.com) 

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SOURCE Karma Automotive

FAQ

What is Karma Automotive's collaboration with Intel (INTC) for?

Karma Automotive is collaborating with Intel Automotive to co-develop Software-Defined Vehicle Architecture (SDVA) for their upcoming vehicles, starting with the Karma Kaveya in 2026.

When will Karma Automotive release its next vehicle and what is it?

Karma Automotive will release the 3rd Generation Karma Revero in the 4th Quarter of 2024, offering 150 examples priced from below $150,000 USD.

What is the Karma Kaveya and when will it be available?

The Karma Kaveya is a super coupe with butterfly doors and up to 1,000HP of pure electric power. It is anticipated for release in 2026 with estimated pricing from $300,000 USD.

What is the Karma Ivara 'GT-UV' Design Study?

The Karma Ivara is a design study for a new segment called 'GT-UV' or Grand Touring Utility Vehicle. It's a four-seater concept that can be developed as either a pure EV or an E-REV (Energy-Range Extended Vehicle).