Ultra luxury plug-in hybrid maker Fisker is eagerly awaiting the upcoming sale of A123 System’s Michigan plant. A123 makes the lithium ion pack that powers the Fisker Karma and CEO Tony Posawatz said yesterday at the LA Auto Show that the company has halted production because it can’t get any batteries from bankrupt A123 Systems.
There’s currently a face off between the Wanxiang Group and Johnson Controls over purchasing the assets of the bankrupt lithium ion battery maker, which got more heated as it was reported late last night that because A123 took DOE money, the government must approve the sale. Many politician, Republicans in particular, don’t like the idea of the Chinese purchasing R&D that the US government paid for.
Fisker has raised over $1.2 billion, a staggering amount. And Pasawatz said recently that “The fundraising process never really ends,” suggesting the company’s not done seeking cash and likely not profitable. It’s due to deliver 2,000 Karmas this year priced at $103,000, and even at a healthy 30 percent margin, that would only amount to about $62 million in gross margin before operating expenses. Let’s just say it’s got to be a pretty generous valuation to even be valued at an amount equal to the $1.2 billion Fisker’s already raised. But for now, the company would be more than happy just to get the A123 Systems factory up and running so it can start producing cars again.