Fisker closes deal for supplier Magna to build its SUV, take stake in startup

In this news, we discuss the Fisker closes deal for supplier Magna to build its SUV, take stake in startup.

DETROIT (Reuters) – Fisker Inc, which goes public through a merger with a so-called blank check company, said on Thursday that auto supplier Magna International Inc MG.TO will supply the vehicle’s platform and build the Electric car manufacturer’s Ocean SUV.

As part of the deal, Magna will receive warrants to buy up to 6% stake in Fisker, worth around $ 3 billion, Fisker CEO Henrik Fisker told Reuters .

“We are at top speed,” Fisker said in a telephone interview. “It’s a huge turning point. We realized that Magna would be a great partner, because having a skin in the game obviously means we both have the same goal of bringing this car to market.

Fisker, which merges with Spartan Energy Acquisition Corp SPAQ.N, said it has finalized a deal with Canadian Magna to build the ocean in Europe, marking the Canadian supplier’s first entry into contract manufacturing for an EV startup. .

Magna has also reached a tentative deal to build vehicles for start-up EV Canoo Holdings LtdHCACU.O, which will also go public later this year through a reverse merger with a special purpose acquisition company. , or SPAC.

Magna’s stake in Fisker is subject to the achievement of three engineering and production milestones with the planned start of production from the Ocean in November 2022, said Henrik Fisker. Fisker Inc said in August that it had reached a tentative deal for Magna to build the SUV at its plant in Graz, Austria.

“This is a great example of our strategy to leverage our strong portfolio to adapt to future mobility needs,” Magna Chairman Swamy Kotagiri said in a statement.

“It is a unique competitive position for us, in particular with new mobility players and equipment manufacturers looking to expand their electrified offers.

Fisker previously said it was negotiating to use Volkswagen AG’s VOWG_p.DE MEB electric vehicle platform for the ocean, but Fisker said the company was still in talks with the German automaker to use body parts. and indoor not specified.

The use of Magna’s aluminum-intensive vehicle platform will allow the Ocean to have an electric range of over 483 km and will allow Fisker Inc to offer buyers the option of a third row of seats, Fisker said.

The vehicle will have a starting price of $ 37,499.

Fisker’s merger with Spartan is scheduled to end on Oct. 30, and shares in the EV maker will trade on the New York Stock Exchange under the symbol “FSR,” Fisker said.

Report by Ben Klayman in Detroit; edited by Jason Neely

Original © Thomson Reuters

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