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Fisker says it is nearing end of supply chain crisis

Published 06/14/2022, 12:57 PM
Updated 06/14/2022, 01:05 PM
© Reuters. FILE PHOTO: A view of a Fisker logo during the 2021 LA Auto Show in Los Angeles, California, U.S. November, 17, 2021. REUTERS/Mike Blake/File Photo
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(Reuters) - Electric-vehicle maker Fisker Inc is seeing a "sort of end" to its supply chain crisis, Chief Executive Henrik Fisker said on Tuesday, mitigating some concerns for automakers grappling with a yearlong shortage of semiconductors and other components that crimped production.

Fisker told a Deutsche Bank (ETR:DBKGn) auto conference that the company had faced supply chain issues when it was testing and developing its Ocean SUV but made design changes to certain parts to use chips that were more widely available.

Prices of batteries, which have surged this year on the back of red-hot demand for EVs and disruptions caused by Russia's invasion of Ukraine, will likely fall next year, he said, adding the carmaker would not increase prices for at least its first 40,000 reservations.

Fisker said last week it had surpassed the 50,000 reservation mark for its Ocean SUV and its PEAR compact car had received over 3,200 pre-orders.

© Reuters. FILE PHOTO: A view of a Fisker logo during the 2021 LA Auto Show in Los Angeles, California, U.S. November, 17, 2021. REUTERS/Mike Blake/File Photo

The chief executive also said he was not worried about scaling up production when it starts in November as the carmaker had reached out to suppliers to ensure the volumes needed.

The company's Ocean SUV will be manufactured by Magna International (NYSE:MGA)'s Austrian unit, while the PEAR compact will be made by Foxconn at its newly acquired plant in Lordstown, Ohio.

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