Interview with Henrik Fisker: Without volume, a car manufacturer cannot exist

We met Henrik Fisker shortly after the opening of the two branches in Munich at the Fisker Lounge on Kaufingerstraße. Around noon, he strolled into "his store" with his wife Geeta Gupta - both in high spirits and giving the impression they deliberately chose Kaufingerstraße, Munich’s large pedestrian zone: It’s a great place to stroll around and take the time to calmly look over a vehicle like the Ocean. We were informed that Henrik might have ten or fifteen minutes to spare that afternoon – which then turned into a longer, well over half-hour conversation. Fisker, who himself lived in Munich for a longer time during his tenure at BMW, brings the leisure of the pedestrian zone directly into the lounge. We settle in a couch corner, where Fisker openly explains his background and plans for the future.

After the Aston Martin, BMW Z8, the Fisker Karma, and the once-planned EMotion, you are now bringing out the "Ocean," a comparatively conventional and subtly designed SUV for the global mass markets – what prompted this change in mindset?

Fisker: Volume is precisely the keyword. Because without volume, a car manufacturer cannot exist. In my career, I have had the privilege of designing many luxurious and exclusive vehicles, up to my own model "Karma." But it’s clear: All luxury brands have volume manufacturers backing them: be it BMW with Rolls Royce or the VW Group with Bentley or Porsche. This significantly reduces costs, especially in engineering and procurement, so that even four-digit production numbers can be profitable. Therefore it was clear: Fisker as a brand must generate volume to be viable.

Which should work with Ocean, Pear, and Alaska. And then you treat yourself to the Ronin?

Fisker (laughs): Of course, we still have a passion for elegant four-door electric convertibles like the Ronin, but that's the icing on the cake. First, we need to achieve volume with Ocean and Pear. You must also not forget that vehicles today are by no means seen as emotionally as they were in my youth. Back then, the first own car was THE gateway to freedom. Today, that is partly found elsewhere – for example, in digital devices.

This is a good transition to the Pear, which you want to produce with Foxconn, the manufacturer of the Apple iPhone, while the Ocean is being made at Magna. Why do you always rely on contract manufacturers here?

Fisker (smiles): Because they can do it! They have an incredible amount of experience in detail, so we can save ourselves a "production hell" at the start of assembly. And we can keep ourselves small and flexible. You see, at Fisker we only have about 1,000 employees in total, which is very few for a car manufacturer in the volume segment. This allows us to react quickly and keep our costs low.

Is that also the reason for the direct sales?

Fisker: Exactly! Because with a conventional vehicle, many small extra costs are added to the production price, which add up to a significant amount. This starts with the production facilities, which in turn have to be taxed and insured, to the dealer network, which has to be maintained. And so, many small amounts add up to the car, which the customer has to pay and which reduce the manufacturer's margin. Instead, we prefer to invest in details like the "California Mode" (all windows including the rear window and rear side windows go down, editor’s note) or sustainable surfaces.

They all seem very high-quality. But how do you manage this price? Fisker can't work magic either, can they?

Fisker: That's true! Of course, we also have to save costs in one place or another, but as a designer, it's important to me that the customer doesn't see that!

Can you show us an example of such invisible savings?

Fisker (smiling and pointing to the front hood): The "hood" for us is a cover that can only be removed by service. The customer doesn't need to access it anymore except to refill windshield washer fluid. That's why we logically placed the refill opening close to the wiper blades. The service can remove the hood, but only with tools. If we had designed it as a conventional hood with hinges, we would have had to design and manufacture it much more elaborately regarding other seals, an opening mechanism, and also concerning crash behavior. What you also don't see are the backsides of the interior panels, which we were able to make very cost-effective on the assembly side. For the surfaces you can see, feel, and touch, we invested a lot of money in expensive tools.

Why?

Fisker: For two reasons: First, the surfaces of high-quality tools do not wear out as quickly, allowing you to use them for tens of thousands of units without revision. Secondly, you can produce more precisely and quickly with them, thus saving unit costs again.

This becomes even more important with the Pear. Why should the Ocean be followed by an even cheaper model and not by a more expensive image model first?

Fisker: We have to remain realistic here. For most customers in the world, even the cheapest Ocean is still expensive! And as you know, all corporations are feverishly working on models whose entry price starts with a three or, even better, a two. The biggest challenge for automakers who want to be active worldwide is vehicle size: In India or Southeast Asia, customers also accept small cars that are 3.5 meters short, whereas in the USA, even the Ocean is considered "compact." Hardly anyone likes driving around in a small car there when there's plenty of space for larger models. That's why we had to find a size and appearance for the Pear that are just acceptable in the USA and still considered "compact" in the rest of the world, i.e., 4.4 to 4.5 meters.