Karma Automotive Reaches Supply Deal With BMW
November 12 2015 - 1:50PM
Dow Jones News
Karma Automotive reached a deal for BMW AG to supply it with
charging systems and array of other components as the Chinese-owned
electric-car maker readies a new luxury vehicle.
Karma, formed when China's Wanxiang Group purchased assets from
now-defunct Fisker Automotive Inc. out of bankruptcy proceedings in
2014, will get powertrain parts and an array of electric and hybrid
technologies from BMW, the company said on Thursday. The Costa
Mesa, Calif.,-based auto maker plans to start selling a luxury
plug-in hybrid car in 2016 to get back into the electric-car
market.
A vehicle called the Karma was last built by Fisker in 2012. The
newly created Karma company has primarily been servicing existing
customers while trying to launch a new model. Karma is retrofitting
a 556,000-square-foot building and has begun testing out equipment
in the plant, said Jim Taylor, Karma's chief marketing officer, in
an interview.
Karma, which employs about 300 people, has moved machinery from
Finland, where the previous vehicle was built, to a new factory
under construction in Moreno Valley, Calif., about an hour outside
of Los Angeles. The company has about 40 workers at its plant.
"Any chance we have to pick up where a reputable [auto maker]
like BMW has left off with engineering, design and, of course,
validation, is huge for us," said Mr. Taylor, a former General
Motors Co. executive. "The alignment you select with key partners
is critical to building a new car company." The previous Fisker
Karma suffered quality problems that dented sales.
Karma will be using "high-voltage charging systems and a wide
range of hybrid and EV systems," the company said in a news release
announcing the supply deal with BMW.
BMW has developed electric-car technology under the "i-series"
grouping, which for now includes the i3, a bubble-shaped electric
vehicle with a carbon-fiber body structure, and the i8, an electric
supercar. The German auto maker uses an electric-vehicle
fast-charging system that it is deploying along with Volkswagen
AG.
Buying powertrain components from an established auto maker such
as BMW could help Karma ensure high-quality components in its new
vehicle, an undertaking that might otherwise prove challenging for
a startup.
Karma has revealed few details about the car, including the
name, the price and how it will be sold. Mr. Taylor said the
company would announce its retailing strategy in the next few
months.
Karma's battery will be provided by A123 Systems LLC, a company
Wanxiang also purchased out of bankruptcy. A123 was the original
supplier to the Fisker Karma, but has developed a new battery for
the coming vehicle.
Karma is one of several electric upstarts with Chinese backing.
Faraday Future, owned by Leshi Internet Information and Technology
Corp., is developing an electric vehicle to compete with rival
Tesla Motors Inc. It is based in the Gardena, Calif., a Los Angeles
suburb.
Atieva Inc., in Menlo Park, Calif., outside San Francisco, is
also working on an electric car. That company is also backed by
Leshi, as well as Beijing Automobile Industry Holding Co.
Write to Mike Ramsey at michael.ramsey@wsj.com
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(END) Dow Jones Newswires
November 12, 2015 13:35 ET (18:35 GMT)
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