Fisker closes deal for supplier Magna to build its SUV, take stake in startup
15/10/2020 14:00
By Ben Klayman
DETROIT, Oct 15 (Reuters) - Fisker Inc, which is going
public through a merger with a so-called blank check company,
said on Thursday auto supplier Magna International Inc MG.TO
will supply the vehicle platform and build the electric
carmaker's Ocean SUV.
As part of the deal, Magna will receive warrants to purchase
a stake of up to 6% in Fisker, worth about $3 billion, Fisker
Chief Executive Henrik Fisker told Reuters.
"We're full speed ahead," Fisker said in a telephone
interview. "This is a huge turning point. We realized Magna
would be an amazing partner because having skin in the game
obviously means we both have the same goal of getting this car
to market."
Fisker, which is merging with Spartan Energy Acquisition
Corp SPAQ.N , said it had finalized a deal with Canada's Magna
to build the Ocean in Europe, marking the Canadian supplier's
first entry into contract manufacturing for an EV startup.
Magna also has a tentative deal to build vehicles for EV
startup Canoo Holdings Ltd HCACU.O , which is also going public
later this year through a reverse merger with a special-purpose
acquisition company, or SPAC. urn:newsml:reuters.com:*:nL1N2FK0IA
Magna's stake in Fisker is subject to hitting three
engineering and production milestones through the planned start
of production of the Ocean in November 2022, Henrik Fisker said.
Fisker Inc said in August it had a tentative deal for Magna to
build the SUV at its Graz, Austria, plant. urn:newsml:reuters.com:*:nL1N2F91NM
"This is a great example of our strategy to leverage our
strong portfolio to scale for future mobility needs," Magna
President Swamy Kotagiri said in a statement.
"This is a unique competitive position for us, particularly
with new mobility players and OEMs seeking to expand their
electrified offerings.”
Fisker had 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 remains in talks with the
German automaker to use unspecified body and interior parts.
urn:newsml:reuters.com:*:nL2N2F21FJ
Use of Magna's aluminum-intensive vehicle platform will
allow the Ocean to have an electric driving range of more than
300 miles (483 km) and will allow Fisker Inc to offer buyers the
option of a third row of seating, Fisker said.
The vehicle will have a starting price of $37,499.
Fisker's merger with Spartan is expected to close on Oct. 30
and the EV maker's shares will trade on the New York Stock
Exchange under the symbol "FSR", Fisker said.
(Reporting by Ben Klayman in Detroit; editing by Jason Neely)
((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))