Fisker’s Second Venture: Mass Production and Direct Sales

March 27, 2021
Fisker’s Second Venture: Mass Production and Direct Sales

Henrik Fisker’s first car company failed.  His second venture is going to be different.

Fisker plans to mass produce a more economically priced SUV in the electric vehicle market.  Like other car companies such as Toyota, he also intends to use contract manufacturing for production.

Like Tesla, Fisker plans to sell direct to consumers.


Video Spotlight: 


This post is based on the CNN article, Henrik Fisker’s first car company flamed out. He’s sure this one will work, by Peter Valdes-Dapena,  February 18, 2021, and the YouTube videos in the Spotlight. Image source: Herr Loeffler/Shutterstock

Discussion Questions:

1. What are the disadvantages of contract manufacturing for Fisker?  Advantages?

Guidance: Students will easily note the main disadvantage is quality control.  Capacity issues may also arise. If the contract manufacturer is handling BMW and Fisker, the manufacturer is likely more interested in keeping BMW’s business.

Advantages should include allowing Fisker to focus on design and sales, and immediate startup of volume manufacturing to support Fisker’s goal of selling an economical SUV by obtaining economies of scale.

2.   By selling direct to consumers, what pressures will this place on Fisker’s supply chain?

Guidance: This is an opportunity to review logistics risks.  Students should consider the time-sensitive SUV customer delivery window that Fisker will need to meet.  For example, what additional costs will this incur for last mile delivery?  How would servicing of SUV’s be arranged?  This venture creates a list of questions to explore about logistics management.

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