Fisker signs long-term binding agreement with Magna

Fisker signs long-term binding agreement with Magna

Electric vehicle (EV) manufacturer Fisker Incorporated has confirmed that it has signed a binding agreement with Magna International Incorporated to support manufacturing, including volumes, costs and quality metrics through the year of 2029.

The newly signed long-term manufacturing agreement has finalized all aspects of the cooperation agreement between the two companies that was originally approved on 15th of October last year. In other words, it finalized the framework established between by the two companies last year.

Pushing ahead with the plans to electrify the transportation system, Fisker and Magna will collaborate on various projects until at least 2029, and the agreement can be extended further if everything goes well and the EV they launch become successful.

The agreement also suggests that Fisker, launched by Henrik Fisker and his wife Geeta Gupta-Fisker in 2016, don’t want to build its EVs itself. It is clear from the fact that it handed the responsibility of manufacturing its EVs over to Austria-based Magna.

The Austrian manufacturer will also be responsible for providing development support and the platform that underpins the upcoming Ocean electric crossover, though the vehicle has been modified by the American EV startup to fit its needs.

Frank Klein, president of Magna, said that combining all elements of the portfolio makes Magna’s proposition highly competitive in capital efficiency, launch reliability and speed to market, and that the collaboration with Fisker demonstrated his company’s unique capabilities in the field of delivering world-class automobile technologies.

Speaking on the topic, Klein said, “Combining all elements of our portfolio, makes Magna’s proposition highly competitive. Our collaboration with Fisker is an excellent example demonstrating the unique capabilities Magna offers as the go-to supplier when it comes to delivering world-class technologies and vehicles for our customers.”

Henrik Fisker also spoke very high of his company’s collaboration with the Austrian manufacturer. He added that his company’s asset-lite model would power it towards its planned delivery of the all-electric Ocean SUV with features and functions exceeding its original aspirations. He stressed that Fisker continued to scale rapidly to deliver a range of high-quality sustainable vehicles, thanks to its collaborators like Magna in Austria to software engineers in San Francisco.

The fully-electric Fisker Ocean SUV is scheduled to enter production lines in November 2022 at Magna’s Graz, Austria-based top-notch manufacturing facility, which has already manufactured more than 3.7 million vehicles for various international automobile companies.

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