Fisker changes tack on distribution strategy

US-based electric car firm Fisker is changing tack and now plans to sell through a mix of direct sales and dealer network throughout Europe while developing a similar partnership model in North America.

Fisker, whose only physical presence in the UK currently is the Fisker Lounge at London's Westfield White City shopping centre, launched with a distribution model of online sales and owned 'fulfillment locations'.

Last year, Fisker also lowered the cost of its Ocean Extreme worldwide which is the longest range of any new electric SUV in its class sold in European markets today, dropping its price in the UK market from £60,880 to £57,900

Deliveries of its first cars globally began in May 2023 and the launch plan for further models includes the Fisker Pear hatchback, the Fisker Ronin convertible sports car, and the Fisker Alaska pick-up truck.

According to new market research by JudgeService’s Car Buyer Barometer, which polled the views of 1,000 UK consumers, three-quarters would be tempted by cheaper prices and that consumers would consider switching to one of the many new car brands if priced significantly lower than established marques. Brand penetration remains a critical issue however with research also revealing that awareness of all some brands was low, even for those currently on sale in the UK including GWM Ora and Fisker.

Henrik Fisker, the car maker’s chairman and CEO, said: “As we saw throughout 2023, the EV market has changed dramatically. As a high-growth startup, Fisker is transforming its strategic efforts by putting in place the brand accessibility and sales channels required to satisfy increasing demand for the Fisker Ocean and to prepare for launch of additional future models.

“As a result, we are evolving our business model and intend to add as many as 50 dealer partners in the US and Canada and a similar number of dealer locations in Europe this year. In keeping with our asset-light strategy, I expect the Dealer Partnership model should enable Fisker to expand its sales and delivery network at a faster pace.”

He said the partnership model would combines the goal of offering our customers no-haggle pricing on Fisker vehicles while also providing dealer partners with larger market territories, so they can maintain pricing without concern for local competition. The company said it has been in discussions with potential dealers since late November.

The company added that it was implementing this approach to accelerate the development of sales, delivery, and test drive network. Fisker said it expects that its first dealers will start receiving vehicles by the end of the first quarter of 2024, and that it will have all its initial dealer partners in place when higher-volume vehicle models arrive in the marketplace in the future.

“In keeping with its sustainability mission, Fisker does not plan to require its dealer partners to make extensive, time-consuming, or costly changes to their existing facilities,” it said. “The company has developed corporate identity features that it can quickly provide to its dealer partners so that they can commence sales and service as soon as possible.”

Fisker said it would continue to maintain its own Fisker Lounges so that customers may experience the brand and contribute sales leads that the company can send on to dealers.