Nissan to invest in EV maker Fisker

TOKYO, Mar 02 (Reuters): Nissan is in advanced talks to invest in electric vehicle (EV) maker Fisker in a deal that could provide the Japanese automaker with access to an electric pickup truck while giving the struggling startup a financial lifeline, according to two people familiar with the negotiations.
The deal could close this month, said the sources, who asked not to be identified because the talks are ongoing and have not been finalized.
Terms being discussed include Nissan investing more than $400 million in Fisker's truck platform and building Fisker's planned Alaska pickup starting in 2026 at one of its US assembly plants, one of the sources said. Nissan would build its own electric pickup on the same platform, the source said. Nissan has US assembly plants in Mississippi and Tennessee.
Fisker said on Thursday, when it announced it might not be able to continue as a going concern and would cut 15 per cent of its workforce, that it was in talks with a large automaker for a potential investment and joint development partnership. It did not name the automaker.
A Fisker spokesman said the company does not comment on speculation, while Nissan officials were not immediately available to comment.
Fisker shares had been down about 45 per cent before the Reuters report but pared those losses and were trading down about 25 per cent with a market capitalization of more than $295 million.
The term sheet is ready and the deal is going through due diligence, one of the sources said.
Nissan was an EV pioneer with its fully battery powered Leaf hatchback in 2010 but has since struggled in the face of nimbler new entrants. A deal with Fisker would help it move into the growing US electric pickup market.
Nissan's talks with Fisker comes in the wake of the former's "rebalanced" relationship with its long-time alliance partner Renault.
Last year, Nissan and Renault finalised terms of a restructured alliance after months of negotiations. They aim to have cross-shareholdings of 15 per cent as part of the deal.
The more limited alliance removes certain restrictions and has opened the door for Nissan to develop growth plans in areas such as EVs and software independent of Renault, said one of the sources, who is familiar with Nissan's thinking.
The Yokohama-headquartered automaker is scouring "many, many opportunities," the person said.
For Fisker, the deal might be the lifeline it needs to survive at a time when aggressive price cuts globally by EV leaders Tesla and BYD are pressuring the industry, especially for startups like Fisker.
Fisker has struggled to sell its flagship Ocean electric SUV after high interest rates led to a slowdown in demand. It said current financial resources were "insufficient" to cover the next 12 months and without additional financing it might be forced to cut production, decrease investments, scale back operations and slash more jobs.