Fisker’s failure is a warning for Aussie drivers
The catastrophic failure of an electric car brand in the US has become a huge red flag for Aussie motorists and the grim future they now face.
COMMENT: Australian drivers should heed the warning posed by failed electric car company Fisker.
Having promised to take on the world with an attractive, competitive and well-equipped SUV, Fisker’s electric cars roam Manhattan like the zombie offspring of a dead carmaker.
Could we see the same from Foton, Deepal, Leapmotor, Ora, Zeekr, XPeng, JAC, Smart, or any of the other new brands that have reached Australian roads?
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Perhaps some of the manufacturers preparing for launch, such as Lepas, Skyworth, GAC, Avatr or Denza?
Quite possibly.
Landing in New York for a holiday last week, I was surprised to see hundreds of examples of a car I didn’t recognise.
Silently cruising through the traffic, these sharp-looking machines didn’t fit in with the hordes of yellow cabs, police cars, VIP limousines and hulking black SUVs rumbling along the road.
A closer look at the unfamiliar badge revealed these smart-looking SUVs were the Fisker Ocean, a medium-sized electric alternative to the likes of Tesla’s Model Y.
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Fisker once pitched the electric SUV as a machine “ready to disrupt the automotive world”, backed by sleek looks, a modern cabin with a 17.1-inch touchscreen, and a big battery with up to 700km of driving range.
Prices ranged from $US37,499 to $US61,499 in America when it launched in 2021 - figures that translate to $58,000 to $94,000 Australian dollars today.
Fisker’s failure to succeed was not helped by a launch that coincided with the coronavirus pandemic - when consumer confidence and manufacturer supply chains were equally broken.
Other speed bumps included scathing reviews such as tech YouTuber Marques Brownlee telling millions of subscribers “this is the worst car I’ve ever reviewed”.
Sales flatlined and Fisker’s share price nosedived.
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You know a company is in trouble when the boss’ house is advertised for more than the brand’s market capitalisation on the stock exchange.
Fisker went bankrupt in 2023 having built less than 12,000 cars.
Around 3000 were unsold when it went bust, bought for cents on the dollar by a firm that sniffed out a bargain.
Those luxury cars were bought for an average of $US13,926 ($21,500) by American Lease, a company recouping its investment by loaning cars to New York’s ride-sharing drivers for about $US65 per week - roughly half what they might spend on a similarly spacious Toyota.
Data published by The Autopian suggests the Fisker Ocean represents around 1800 of 105,000 vehicles registered as Taxi or ride-sharing vehicles in New York today.
Many of the cars have proved troublesome.
An extraordinary report by PC Magazine in May detailed software support issues that plagued vehicles “bricked” by failed updates, quoting owners as saying the Fisker saga “will be a movie one day”.
The short version is that there is much more to a modern car than the hardware that makes it go, stop and turn. And that without the support of a manufacturer, connectivity features ranging from software updates to satellite navigation and basic repair elements could render cars disabled.
It’s one of the reasons you can buy a low-mileage 2023 model Fisker on the second-hand market for less than $US13,000 ($20,000), about one third of its original cost.
This a nightmare scenario for customers who found themselves with broken cars worth a fraction of what they paid.
Stories like this should make motorists think twice when considering a new vehicle.
There are huge differences between some of the new brands that have reached Australian shores recently.
For example, BYD is effectively China’s answer to Toyota, and its local operation is a direct extension of its head office.
It doesn’t represent much of a gamble.
The same is true of Geely, GWM and Chery. But other brands such as JAC, Deepal and Smart are brought in by independent groups including LTS Auto, Inchcape and LSH Automotive, intermediaries hoping to turn a profit by importing new brands from China.
Are they in it for the long haul?
How much pain can they absorb if sales turn south?
It’s impossible to tell from the outside.
But we have been warned - both by the failure of brands like Fisker, and by Aussie auto executives who have clearly stated that the local car market cannot sustain the growing number of brands reaching our roads.
Former Mitsubishi boss Shaun Westcott predicted a “bloodbath” of failed brands.
More recently, Honda’s Jay Joseph said “it doesn’t seem realistic that all the brands that are competing in Australia today will remain viable”, predicting “consolidation and collapse”.
Toyota executive Sean Hanley said customers should do their own research before picking a new brand.
Granted, the folks in charge of “legacy” manufacturers are not likely to encourage motorists to take a punt on new options.
Having witnessed the results of a start-up’s collapse, I’m inclined to agree that motorists should be careful with their cash.
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