US electric car start-up Fisker warns that it could soon run out of money. That would be devastating for Magna in Graz, where Fisker has its vehicles manufactured.
As Handelsblatt reported on Friday, electric car manufacturer Fisker warned on Thursday that it could run out of money and not be able to continue operations. The company would need to raise additional equity or debt financing in the next twelve months, but there are doubts as to whether this would be possible. As a result, Fisker shares fell 37 percent.
Only 10,000 instead of 40,000 cars per year
This also has a huge impact on Magna in Graz, where Fisker not only produces its vehicles, but also has a small stake in the company itself. However, the problems with the US operations are not entirely surprising: the original plan was to produce 40,000 vehicles per year in Graz, but last year this was only 10,000. That is why production is already running at the lowest level: in one shift. The original plan was to return to ‘normal business operations’ in May, but that doesn’t seem very likely.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
