The electric vehicle company Fisker has announced its intention to incorporate traditional dealerships into its sales strategy, alongside its existing direct-to-customer distribution model. The California-based company, operating in the United States, Canada, and Europe, currently has two showrooms known as Fisker Lounges in North America and retail stores called Fisker Center+ in other locations.
Despite manufacturing over 10,000 vehicles in 2023, Fisker faced challenges in delivering its Ocean sport utility vehicles, managing to distribute only about 4,700 units due to constraints in its distribution network. In response to this, Fisker is adapting its business model to include up to 50 dealer partners in the US and Canada, as well as a similar number of dealer locations in Europe in the coming year.
In Europe, Fisker plans to maintain its direct sales approach but will also engage partners for sales and distribution. The company aims to send its first Ocean vehicles to new dealers by the end of the first quarter, with talks with potential dealer partners having commenced in November 2023.
This strategic shift aligns Fisker with a growing trend among electric vehicle startups, including Lucid, Rivian, and Tesla, who have adopted online and direct-to-consumer models to bypass traditional dealership structures. By reducing reliance on middlemen, these companies aim to streamline the buying process and potentially enhance overall customer experience.
While Fisker’s move towards a dealership model represents a shift in its approach, it is not an isolated occurrence within the electric vehicle industry. Other players like VinFast Auto, a Vietnamese electric car manufacturer, and Swedish EV maker Polestar also embrace traditional dealership models, signaling a diverse range of strategies within the rapidly evolving electric vehicle market. As Fisker seeks to overcome distribution challenges and increase its market reach, the incorporation of dealerships into its sales network appears to be a strategic move aimed at achieving these objectives.
