Fisker Inc. and Magna International Inc. have signed an agreement that has been in the works since last year. The companies plan on starting their collaboration with the production of Fisker’s upcoming electric Ocean SUV, but the contract also leaves room for the production of new models co-created between the two companies throughout the duration of the contract. Fisker and Magna International have already finalized smaller and more targeted agreements such as the sharing of an advanced driver-assistance system (ADAS) platform, but the newly signed contract runs through 2029 and includes every stage of production including planning operations and long-term manufacturing plans.

Fisker CEO Henrik Fisker previously announced that the Ocean SUV will be fitted with Magna International’s FM29 platform, which he said comes with “features not previously seen in automotive applications.” While the specifics of this platform have not been released, it is rumored that the front-end of the vehicle will be longer and it will also have revolutionary “electronic and electric” features along with more interior space.

A major goal of the contract is to increase volume and maximize efficiency of production, sales, and deliveries. Magna International president Frank Klein stated that his company’s proposition is “highly competitive” in “capital efficiency, launch reliability and speed to market.” He continued by saying the company’s collaboration with Fisker is “an excellent example demonstrating the unique capabilities Magna offers as the go-to supplier when it comes to delivering world-class technologies and vehicles for our customers.”

While Fisker’s Ocean SUV is set to be unveiled in Los Angeles this November, full production is expected to begin in November of 2022 at Magna International’s manufacturing facility in Austria. The specific facility, which is now carbon-neutral, has already manufactured over 3.7 million vehicles for various brands and currently produces the electric Jaguar I-Pace luxury crossover.

The Ocean SUV will likely have a starting price of $37,499 in the United States and may qualify for electric vehicle subsidies. Customers will also be able to choose from a wide range of Ocean vehicles that have various upgrade packages and even more advanced features.

Henrik Fisker expressed his optimism regarding the partnership, stating, “I am very confident Fisker and Magna will deliver an incredible product to our customers.” He added that the companies “aligned very quickly on the importance of delivering a high-quality vehicle on time” and that they would “continue to strengthen” the partnership and expand it through new technological developments.

Fisker has taken a different approach than automaker Lordstown Motors, which has recently experienced some chaos amid differing statements from company officials as well as the departure of CEO Steve Burns and CFO Julio Rodriguez. Lordstown has also opted to accept “commitments” instead of entering obligatory contracts, and the company said in an SEC filing last week that “these agreements do not represent binding purchase orders or other firm purchase commitments.”

Shareholders have been placing a high amount of trust in Lordstown despite the company not having so-called binding orders and entering into solid, long-term agreements like the current one between Fisker and Magna International. Earlier this month, Lordstown’s stock plummeted after the company announced it was short on cash and was unsure if it could continue its operations through the end of the year. Last week, however, stock bounced back after an announcement stating there is enough money to last another year and that production of its electric Endurance trucks will still begin production in September.

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