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Fisker Automotive to halt Karma production

The luxury green automaker is shoring up its supply of A123 Systems-manufactured batteries

by Caitlin AdamsPublished: November 30, 2012 02:45 PM

Anaheim-based Fisker Automotive has decided to put the brakes on the production of its flagship vehicle, the Karma, due to the current bankruptcy proceedings surrounding the supplier of the car’s unique lithium-ion batteries, A123 Systems Inc.

Massachusetts-based A123 Systems is currently in the midst of a bankruptcy auction, and has asked a judge to void all of its current and outstanding contracts, including the one it holds with Fisker, its largest customer. Fisker, for its part, previously moved to delay the bankruptcy court auction and requested that the judge not allow A123 to break its contract.

In a report from Thomson Reuters, Fisker spokesman Roger Ormisher said that A123 slowed production after filing for Chapter 11 in October. Fisker will keep its current supply of batteries on-hand to meet any need for owner replacements, as part of an earlier recall.

Tony Posawatz, Fisker’s CEO, told news outlets that the company hopes to restart production of the Karma, which is manufactured in Finland, once a buyer for A123 is found.

Fisker Automotive has faced a number of critical challenges this year, including the recall of earlier batteries manufactured by A123 Systems, and the loss of 300 Karma vehicles that were left in a New Jersey port that was flooded during Hurricane Sandy.

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