Fisker Cuts Production Forecast and Prioritizes Liquidity

Electric-vehicle startup Fisker has announced a reduction in its production forecast for the year. The company is focusing on preserving liquidity as it engages in talks to sell emission credits to automakers.

Lowered Production Expectations

Fisker now expects to produce just over 10,000 vehicles in the current year. This is a significant decrease from the previously adjusted production target of 13,000 to 17,000 vehicles. Initially, Fisker had set an ambitious goal of producing over 20,000 vehicles by year-end.

Chief Executive Henrik Fisker remains positive despite the revised forecast. He acknowledges the impact of current market conditions and the prevailing negative sentiments surrounding electric vehicle sales, stating, “Considering these factors, I believe we are still performing quite well.”

Financial Considerations

To ensure sufficient working capital, Fisker plans to reduce production in December. This move aims to free up more than $300 million that can be allocated towards improving liquidity. Meanwhile, the company is focused on enhancing its delivery capabilities while continuing to expand its production capacity.

Exploring Partnerships and Hiring Finance Executives

Fisker is actively pursuing agreements to sell EPA Greenhouse Gas emission credits to major automakers. Multiple strategic partnerships with leading automakers are currently being discussed at an advanced level.

Additionally, Fisker has made new appointments in its finance department following the departure of two chief accounting officers. The company has hired Dan Quirk as the new Executive Vice President of Finance and Accounting. Quirk, a former Ernst & Young partner, brings valuable experience to the role. Fisker is also collaborating with consultants to prepare its annual report for the US Securities and Exchange Commission.

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