Fisker (FSR) - Get Fisker Report was higher after it said it signed an agreement under which Magna International, (MGA) - Get Magna International Inc. Report the mobility technology company, would produce its electric vehicles.
As part of the partnership, Fisker's all-electric Ocean SUV is expected to start production at the Aurora, Ontario, company's facility in Graz, Austria, starting Nov. 17, 2022.
"From the start of this partnership, Fisker and Magna aligned very quickly on the importance of delivering a high-quality vehicle on time," Chief Executive Henrik Fisker said in a statement.
The Graz manufacturing facility has produced more than 3.7 million vehicles for several global automakers.
The agreement is "broad-based" covering planned volumes, manufacturing costs and quality metrics over the program's lifecycle which runs through 2029.
The Ocean SUV from the Los Angeles company will use a version of a Magna-developed electric-vehicle architecture. Fisker will modify that architecture to create new intellectual property that it expects to deliver "class-leading range" while also lowering manufacturing costs.
Fisker now expects Ocean to enter the market with a starting list price of $37,499 in the U.S., excluding electric vehicle-related subsidies, and below €32,000 ($38,200) in Germany (including taxes and EV-related subsidies).
"Our asset-lite model, reinforced by partners like Magna, is powering Fisker towards its planned delivery of the Ocean with features and functions exceeding our original aspirations," said Fisker. He added that the company is scaling rapidly.
Fisker shares at last check were 3.1% higher at $18.29. Magna's shares traded on the New York Stock Exchange were off 0.5% at $92.74.