Fisker Karma
The $528.7 million loan from the Department of Energy, DoE to Fisker raises the bar for the $40,000 electric drive vehicle market segment significantly. What does this mean for the Volt?
The gist is that until now, GM’s Volt was the only one in the $40,000 plug-in hybrid, PHEV, or as GM likes to say extended range electric vehicle, EREV segment. It had no direct competition, even if some tried to pit it against the more expensive Karma. The Karma is in a different league of its own, a sports sedan PHEV. News of the DoE lending $528.7 millions to Fisker to develop a more affordable plug-in hybrid, PHEV means it will compete directly against GM.
The New Kid On The Block Versus The Old One. If GM is strong in the advertising department and its engineering task force has some of the brightest, it has repeatedly managed to bog down great projects due to poor management, heavy infrastructure and lack of vision. Has GM changed today? It is hard to say considering it still relies on advertise till you drop. The new kid on the block, Fisker Automotive is a formidable opponent to GM. It is build on a modern business model, which leaves manufacturing to others and focuses on design. See our previous articles on Fisker’s revolutionary business model here, there and there. GM will react in the next few weeks, most likely with a wave of advertising.
Spending On The Little Guys. A $528.7 million investment in a small firm today could mean a big company tomorrow. In this case it means 5,000 jobs in the U.S., plus a more affordable PHEV.
It would not surprise anyone to see Fisker’s new Nina concept hit the road before the Volt and be profitable in less time. GM is a bigger, more complex company. Fisker, on the other hand is nimbler.
A Few Things To Take Away. Two things to take away from this, finally new companies are getting a much needed help from the government. Tesla received funds, and the other high-profile startup Fisker has received a substantial amount for the Nina PHEV. Second, this loan firmly places Fisker as a key player in the electric drive vehicle field. After all, all car makers were startups at some point.
Oh and why Nina? It is a reference to Christopher Columbus and alludes to conquering a new era. How a propos.
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