Karma Automotive builds StreetScooter for B-ON in the USA

News from Karma Automotive and B-ON, where in 2022 they acquired the Post subsidiary StreetScooter including the Düren plant with an annual capacity of 30,000 vehicles. While Karma still has the former Fisker Karma as the GS-6 and GSe-6 in its program, efforts in the van sector are also being further advanced: According to Karma Automotive, the StreetScooter will be assembled in the company's own production facility in Moreno Valley, California. Pre-production is expected to start in July. From 2024, the production capacity of up to 30,000 units per year is to be fully utilized.

B-ON plans to become globally active and produce

Stefan Krause, founder, chairman, and CEO of B-ON, expects that the demand for light electric commercial vehicles will soon exceed capacities in Germany. He adds:

"We knew we needed to expand our production capacities this year, and Karma's facility in California is the perfect location to serve the booming North and South American market while also accessing their top-notch workforce and capabilities."

B-ON aims to become a full-service provider for fleet electrification, including the related ecosystem. For the charging infrastructure and energy management, B-ON also entered a cooperation with Hitachi. Additionally, Hitachi Venture, Hitachi's venture capital company, became a shareholder in May 2022. Production at Karma would offer the opportunity to double capacity and take the leap to North and South America with short delivery routes. Jeff Wawryzniak, CEO of Karma Automotive, hopes:

"B-ON's product has proven itself in the market, and we are proud to work with B-ON and to be their exclusive manufacturer of last-mile delivery vehicles in North America."

In his view, B-ON's product combined with Karma's existing expertise and operational capabilities as an OEM in Customized Flexible Manufacturing is a recipe for success.

The American distribution demands local assembly

Background of the deal: Already in summer 2022, B-ON was able to announce an agreement with the US company Creative Bus Sales (CBS) for the exclusive distribution of B-ON’s e-transporters in the USA. The cooperation started with a first order of 500 vehicles for the fourth quarter of 2022, but was expected to grow to up to 20,000 vehicles per year in the long term. The condition for this was a corresponding increase in quantity through production in the USA.

What does this mean?

The StreetScooter could now conquer the USA as well. In fact, the vehicle concept also fits into the States. The technical basis and production capability are in place – now it's just a matter of getting customers. And that's exactly where we have to wait and see.