Fisker’s New Billionaire Owner Will Spend Whatever It Takes To Succeed

In an exciting turn of events, Fisker Automotive has been picked up by a Chinese firm led by billionaire Lu Guanqui.  Wanxiang Group Corp. has taken over the company and intends to resume production of electric cars in both the United States and China.

Lu Guanqui promises to do whatever it takes to battle with “the world’s most eminent electric car maker”.  Fans of Tesla Motors are acutely aware of who he is referring to, and concerns from the Tesla camp over the competition are certainly valid.  Guanqui told Bloomberg at Wanxiang’s headquarters in Hangzhou that, “I’ll put every cent that Wanxiang earns into making electric vehicles.  I’ll burn as much cash as it takes to succeed, or until Wanxiang goes bust.”  These strong words may help the revitalized Fisker to succeed, along with the notable fact that Wanxiang has the unique advantage of buying the shell of an automaker that has already completed much of its developmental research.

Harry Chen, an automotive analyst with Guotai Junan Securities, explained further.  “Fisker brings a unique edge and owning the company no doubt benefits Wanxiang in terms of gaining access to technologies that would otherwise take them years to develop.  To succeed it ultimately has to start production in China and manufacturing in U.S. is just a stepping stone.”

Wanxiang purchased Fisker and its various intellectual property for $149.2 million, and the company is clearly determined to command a massive space in the world of electric cars.  The precise plans for Fisker have not been revealed, but the company has indicated that they will build on both The Karma and the Tesla Model S, as well as working on more plug-in hybrids in the future.  The Karma was made in Finland prior to Fisker’s bankruptcy last year, and at a price of $103,000, it costs a similar amount to the high-end Tesla Model S.  However, The Karma is known to have several technical flaws as well as causing concern over the fact that it still consumes some gasoline.  Lu said to Bloomberg, “The road is still very long.  We want to concentrate for now on manufacturing in the U.S..  If I don’t succeed, my son will continue with it.  If he doesn’t make it, my grandson will.”

Some analysts are predicting that this high level of determination from Lu could cause some serious long-term problems for Tesla.  While the Model S and the Karma are not direct rivals due to their EV and plug-in hybrid platforms, the two companies undeniably exist within a competitive and close-knit space.

An additional problem for Tesla could also exist soon, given Lu’s willingness to spend massive amounts of money on electric vehicle engineers, as he could potentially take away Tesla’s gifted employees with promises of large increases to their salaries.  Lu has made it very clear that he will spend whatever it takes to succeed in his new venture.  Tesla spokesman Simon Sproule told Bloomberg that, “Tesla is already competing in arguably one of the most brutally competitive global industries.  The only truth in our industry is that the best product combined with the best customer care will earn the right to stay in business.”