Fisker, which is merging with Spartan Energy Acquisition, said it had finalized a deal with Canada's Magna to build the Ocean in Europe, marking the Canadian supplier's first entry into contract manufacturing for an EV startup.
Magna also has a tentative deal to build vehicles for EV startup Canoo Holdings, which is also going public later this year through a reverse merger with a special-purpose acquisition company, or SPAC.
Magna's stake in Fisker is subject to hitting three engineering and production milestones through the planned start of production of the Ocean in November 2022, Henrik Fisker said. The company said in August it had a tentative deal for Magna to build the SUV at its Graz, Austria, plant.
"This is a great example of our strategy to leverage our strong portfolio to scale for future mobility needs," Magna President Swamy Kotagiri said.
"This is a unique competitive position for us, particularly with new mobility players and OEMs seeking to expand their electrified offerings.”
Fisker had previously said it was negotiating to use Volkswagen Group's MEB electric-vehicle platform for the Ocean, but Fisker said the company remains in talks with the German automaker to use unspecified body and interior parts.
Use of Magna's aluminum-intensive vehicle platform will allow the Ocean to have an electric driving range of more than 300 miles and will allow Fisker to offer buyers the option of a third-row of seating, Fisker said.
The vehicle will have a starting price of $37,499.
Fisker's merger with Spartan is expected to close on Oct. 30.
