Fisker announces its first 32 dealers

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

Apparently even the car of the future needs old-fashioned sales technology.

Irvine-based Fisker Automotive, preparing to begin production of its plug-in hybrid sedan late this year, said on Tuesday that it had signed up 32 new car dealers in North America to sell the vehicle.

‘Our retail partners are our most important assets,’ said Vic Doolan, a Fisker board member who played a central role in locating and negotiating with prospective dealers. ‘They are the face of the company.’

The announcement is the latest step in the company’s bid to be the first car maker to make plug-in hybrid technology available to consumers. Several large automakers, including General Motors, are also working on similar drive trains, but they are not set to enter production for at least 18 months. GM has more than 6,000 dealers nationwide.

At the same time, a growing number of startups that have been working on similar technology have not gone the dealership route. San Carlos-based Tesla Motors, for example, which makes an all-electric car, sells its cars directly to consumers and owns the only two retail locations it has.

Fisker hopes to sell as many as 15,000 of its Karmas -- which run on electric motors powered by lithium ion batteries and carry a gasoline generator to extend their range to 300 miles -- per year. Company executives argue that by relying on already standing car dealers, it doesn’t need huge piles of cash to develop a nationwide dealer network. It also doesn’t have to build up a large sales force, since the dealers will take care of that.

One of the new dealers...

Dan Gaby, plans to dedicate one of his three standing Pasadena showrooms for Fisker. Recently, he consolidated his separate Hyundai, Hummer and Chevrolet dealerships into just two showrooms, freeing up room for Fisker. Beyond that, he said, the commitment is relatively minimal: Fisker asks its dealers to purchase two vehicles (at $87,800 apiece), update their service bays for the new technology, and dedicate some floor space to Fisker alone.

‘We had the capacity, and with all the buzz in California about the environment, this product fits well into what we offer the public,’ Gaby said. His was among several of the dealerships chosen by Fisker that also had existing GM franchises. That may, in part, be due to the fact that the Karma’s engine is made by GM, which will make service easier, Gaby said.

While Fisker announced dealerships in 16 states plus British Columbia, the greatest number are in California. In addition to the Pasadena location, Fisker inked deals with dealers in seven other Golden State locales, including hybrid-mad Santa Monica, where Mike Sullivan, who owns nine dealerships with brands, including Toyota, Lexus and Porsche, plans to put the Fisker.

Sullivan, who said his dealerships moved more hybrids last year than any other nationwide and also sold the Toyota RAV electric vehicle in the late 1990s, believes that selling Fiskers could become ‘quite profitable’ once the economy improves.

‘We need to be realistic and get this off the ground together,’ said Sullivan, who said he plans to purchase one of the Karmas himself. ‘I’ve even picked out the color.’

Fisker’s corporate headquarters has taken 1,300 deposits for pre-orders and plans to begin delivery to dealers early in 2010. The company has raised $100 million in venture capital and is working to close its final round of funding. Fisker Chief Executive Henrik Fisker has said that he hopes to recruit as many as 45 dealers in North America and 40 in Europe.

--Ken Bensinger

Photo: Fisker Karma Credit: Fisker Automotive