Fisker closes deal for Magna to build its SUV

Fisker Inc, which is going public through a merger said on Thursday that auto supplier Magna International will provide the vehicle platform and build the electric automaker’s Ocean SUV.

As part of the deal, Magna will get warrants to purchase a stake of up to 6% in Fisker, giving the EV automaker an overall valuation of about $3 billion, Fisker Chief Executive Henrik Fisker informed Reuters.

“We’re full speed ahead,” Fisker said in a telephone interview according to Reuters. “This is a huge turning point. We realized Magna would be an amazing partner because having skin in the game obviously means we both have the same goal of getting this car to market.”

Fisker, which is merging with Spartan Energy Acquisition, said it had finalized a deal with Magna for building the Ocean in Europe, marking the Canadian supplier’s first entry into contract manufacturing for an EV startup.

Use of Magna’s aluminum-intensive vehicle platform will enable the Ocean to have an electric driving range of over 300 miles (483 km) and allow Fisker to offer buyers the option of a third row of seating, Henrik Fisker said.

The vehicle is going to have a starting price of $37,499.

Fisker Inc’s merger with Spartan is expected to close on October 30 and its shares will trade on the New York Stock Exchange under the symbol “FSR,” Fisker said.