Electric vehicle startup Fisker seeks U.S. production to build subsidized cars

Fisker Inc. is accelerating its search of US production sites for Ocean SUVs.

Fisker Inc. is spurring a US production site search for Ocean SUVs after the White House announced plans to focus on subsidizing electric vehicles produced in North America.

CEO Henrik Fisker said at the Paris Motor Show on Monday that “the company is considering a number of options, including purchasing a plant or extending its partnership with Magna International Inc.” He said the electric vehicle startup will start Ocean production next month at its Magna plant in Austria.

“I’m considering bringing Ocean production to the US and looking for opportunities as early as 2024,” Fisker said in an interview. The policy change in the United States “made me think we should accelerate because we think this could give us an advantage.”

The United States recently passed new laws limiting eligibility for a tax credit of up to $7,500 per vehicle for cars assembled in North America as part of sweeping reforms to strengthen regional supply chains. The measure will start next year at the 50% threshold and expand to critical battery components and locally sourced minerals. Made in Austria, Fisker’s Oceans is powered by batteries supplied in China.

In the US, Fisker could work with Magna, who in September outlined plans for an electric vehicle plant in the US. The EV manufacturer has already signed a contract with Foxconn, also known as Hon Hai Precision Industry Co., to make the upcoming Pear model at its factory in Lordstown, Ohio. Foxconn was formerly a struggling startup Lordstown Motors Corp. formerly General Motors Co. I bought the site.

In Austria, Fisker expects Magna to produce up to 50,000 Oceans next year with around 7,000 SUVs per week. Negotiations are underway with Magna to increase the plant’s capacity to 150,000 units. Fisker said it will depend in part on how demand is shaped, especially in Europe’s darkening economic environment.

More than 61,000 vehicles are currently reserved, he said.

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