It used to be a favorite among the rich and famous but a series of problems forced it out of the limelight and into bankruptcy. Thanks to China's Wanxiang, the Fisker Karma electric sports car gets a new lease of life. But will it have what it takes to dethrone the Tesla Model S?
Production of the "new Karma," as it's being called, will be moved from Finland to Moreno Valley, Calif.
"Fisker announced that it will lease a newly-constructed 555,670 sq. ft. facility located at 17100 Perris Blvd. in Moreno Valley's South Industrial area," the city confirmed.
As part of its efforts to rebuild, the company's chief marketing officer Jim Taylor told The Orange County Register that it now has 200 employees in its Costa Mesa headquarters, a far cry from its 700-strong workforce during its heyday but significantly more than last year's 20.
Asked when they'll reintroduce the Fisker Karma electric sports car, Taylor said they are targeting mid-2016 launch.
"That's what we've told the plants and out suppliers, but we won't make any promises to say this is our launch date, get ready."
Fisker spokesperson Judy Hoste told Fortune that the new car will retain its Karma name although a new name is being considered.
Parent company Wanxiang America identified 250 "bugs" in the design that should be fixed before production is resumed, according to Green Car Reports. 150 unsold examples are reportedly being used for development work to keep costs down.
Hangzhou, China-based Wanxiang acquired Fisker's assets in early 2014 for $149.2 million after purchasing its battery supplier, A123 Systems, a year earlier. Only around 2,000 Karmas were made before the company tanked in 2013.
A lot has changed since the Fisker Karma electric sports car went out of production. Most notably, Tesla has established itself as a player in the electric car market with its Model S earning praise and critical acclaim.
"To re-enter the market will be a bigger challenge than when they first entered it," a senior analyst at auto information website Edmunds.com said.
