Posted by BMD Admin on 04/22/2013
When we went out for a test drive in the Fisker Karma last year, we thought that it felt a little more high-tech than the $100,000 price tag led us to believe. Everything operated smoothly, the interior was plush, the performance was admirable and its look was downright stunning. With all of this technology and design comes a hefty price, and boy did Fisker feel its belt tightening with each and every Karma it produced.
With its bankruptcy proceedings pretty mu inevitable, PrivCo dug up all the public record s it could to have a look at Fisker’s financial goings on, and it found that the each Karma produced cost a total of $660,000 but sold for only about $100k – that’s just bad business, folks. Now, we’re not saying that each car it built literally cost $660k, what this means is that when you take all of the research and development cost, advertising costs and the other costs associated with the car and divided it by the number of Karma’s sold, you get roughly $660k.
At that rate, there was no way Fisker could have survived anyways, but the fact that it was the victim of management that would likely make Lotus’ former management look good just accelerated things. In fact, PrivCo has released a detailed review of Fisker $1.3 billion debacle, which really opens our eyes to just how promising the model was and outlines exactly where things completely fell apart. You can see this study here.
The fortunate thing is that Fisker’s advanced EVer system will likely be bought out during the bankruptcy process, so even though we will not see another Karma on the road, it may live on in spirit through future models using this awesome drive system.
In 2008, Fisker unveiled the Karma concept at the North American International Auto Show (NAIAS) in Detroit and after a few delays, it hit showrooms.
The Karma had it all: sexy looks, a plush interior, high-tech gadgets, superior design, low fuel consumption and ample power. In fact, its power was more than ample, as its electric drive system pumped out 403 horsepower and 981 pound-feet of torque at full tilt. This was enough to sprint this mammoth sedan to 60 mph in just 6.3 seconds.
Unfortunately, an immediate recall slowed sales, then build quality and over-engineering caught up with the sedan, as buyers found little issues with the car that some found unbearable. Finally, the death blows came in the form of the Department of Energy pulling its loan to the struggling company for repeatedly missing its goals and Karmas started going up in flames due to failed cooling fans.
Roughly 2,500 Karmas rolled into customers’ garages during its time in the sun. The future of the Karma is in serious doubt, as the company spirals closer to bankruptcy and asset liquidation.