Fisker to resume Karma production, team up with VL Automotive

February 20, 2014
A new report finds Fisker parent company Wanxiang will quickly resume production of the Karma plug-in hybrid sedan in order to generate short-term cash flow.

The Karma will initially be built by Valmet Automotive in Finland but Wanxiang indicated it plans on shifting production to the United States as soon as possible. The sedan will carry on with a gasoline-electric plug-in hybrid drivetrain developed before FIsker’s highly-publicized downfall and a lithium-ion battery pack manufactured by A123 Systems, a firm that joined Wanxiang’s growing portfolio after filing for bankruptcy in late 2012.

Wanxiang will benefit from economies of scale by teaming up with VL Automotive, a company founded by Bob Lutz and Gilbert Villareal, to build a high-performance variant of the Karma powered by a Corvette-sourced V8 engine (pictured). Called Destino, the V8-powered Karma will be built in VL’s Auburn Hills, Michigan, assembly plant.

Although some have criticized Lutz for turning a taxpayer-funded environmentally-friendly sedan into a muscle car, Wanxiang praised VL Automotive for creating “the first true American luxury grand tourin sedan in decades.”

Lutz has not put a price tag on the Destino but he previously hinted it would carry an $80,000 premium over the $100,000 Karma.

Within 18 months of relaunching Fisker, Wanxiang hopes to sell a total of 1,000 Karmas and Destinos in the United States and 500 units Europe, where the Karma has never been sold. A precise time frame for when production is scheduled to resume was not disclosed.

Based in China, components manufacturer Wanxiang purchased the remains of Fisker for $149.2 million last week.

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