Henrik Fisker (Reuters)
DETROIT — Electric car maker Fisker has finalized its vehicle-assembly deal with Foxconn Technology Co Ltd, including plans to open a U.S. plant in 2023, the companies said on Thursday.
The plant’s location has not been identified, but Fisker Chief Executive Henrik Fisker said four states are under consideration, including Foxconn’s plant site in Wisconsin. Foxconn Chairman Liu Young-way previously said electric vehicles (EVs) have a “promising future” in Wisconsin but did not elaborate.
The annual capacity for the U.S. plant will be at least 150,000 vehicles to start, Fisker said.
“When you look back at recent history and new technology products, they have been launched in the U.S. first,” Fisker said in an interview. “That’s why we want to launch here.” He expects the U.S. market initially to be the biggest for the vehicle.
The DEAL! Signed and sealed! The design is going to be freaking amazing! #Fisker #Love #EVs #ESG #freaking #innovation pic.twitter.com/TGjCCx8Utz
— Henrik Fisker (@henrikfisker)
May 13, 2021
Fisker also cited access to Foxconn’s supply chain, including semiconductor chips, as an advantage of the partnership.
Fisker is one of a handful of EV startups that have gone public through a reverse merger with a special-purpose acquisition company (SPAC) at a time when U.S. President Joe Biden has called for $174 billion in new spending to boost EVs and charging.
Under the Fisker deal, the companies will jointly invest in “Project PEAR” (Personal Electric Automotive Revolution) and share in any profit. The companies reaffirmed Foxconn will eventually build more than 250,000 vehicles a year for Fisker across multiple sites, with initial production beginning at its U.S. plant in late 2023 which it announced in February.
Looking at the PEAR design; I’m intrigued about how it scares me, I have to force myself to not pull back! It’s the next big step in car design! #Fisker #Love #EVs #design #scaring #innovation #ESG #art #intrigued #new pic.twitter.com/2MvRJl4Yz4
— Henrik Fisker (@henrikfisker)
May 12, 2021
“We have world-class supply chains in place to support Project PEAR — in particular, securing the reliable delivery of chipsets and semiconductors,” Liu said in a statement.
The vehicle type has not been identified by Fisker, but will be based on a new lightweight platform — FP28 — designed by both companies. The five-passenger vehicle, which will be sold globally and is the second model under development, will have a starting price below $30,000 before incentives. Fisker said the vehicle would be described by some as a crossover.
Terms of the deal, which runs seven years, were not disclosed.