Fisker Lost More Than $35,000 for Each Karma it Manufactured image

According to a recent report Fisker lost $35, 000 for each Karma hybrid sports sedan it manufactured.

Over the past years Fisker had to deal with many drawbacks, which, analysts believe, will ultimately lead to the automaker’s end. Fisker has not manufacture a single car in more than a year. co-founder Henrik Fisker had resigned in March due to a dispute with several directors, the automaker has fired most of its employees, hired bankruptcy advisers and is currently looking for a buyer.

From 2011 to 2012 Fisker manufactured around 2,450 Karma sedans, but lost at least $35,000 on each vehicle. An anonymous former executive said that producing the Karma cost far more than the company would ever charge for it. In 2011 the automaker sold 200 Karmas and the following year 1,600 vehicles, compared with the target of 15,000 units annually beginning at the end of 2009.

The repeated delays in launching the model were caused by last-minute engineering fixes and design changes, which meant additional costs and late shipments of important components.

“Beneath the world-class skin was a rudimentary machine that needed several years of engineering refinement and testing before it could be ready to be released,” said Maurice Gunderson, a managing partner at Runway Capital Partners who had an opportunity to invest in Fisker in early 2010 and passed.

Source: Reuters