Karma Automotive is on the brink of ruin

Karma Automotive is on the brink of ruin

June 27, 2020 0 By autotimesnews

The future of Karma Automotive is a big question.

After filing for bankruptcy, Fisker Automotive was resurrected and renamed Karma Automotive in 2016. To revive the brand, the company launched the luxury car Karma Revero hybrid sedan, an upgraded version of the original Fisker Karma. This, in turn, led to the appearance of the updated hybrid sports car Revero GT and high-performance Revero GTS.

Looking ahead, it is worth noting that Karma has ambitious plans for the future. The company is currently developing the revolutionary E-Flex platform, which ultimately will serve as the basis for the production version of the 1100-hp Karma SC2 electric supercar concept that has recently been tested. In the future, this platform may change the rules of the game, as it will be used for a wide variety of vehicles, from supercars to electric vans.

But behind the scenes, the American automaker is reportedly experiencing serious financial difficulties. According to foreign media reports, the Karma Automotive company was subjected to massive layoffs of employees. In addition, management was accused of poor governance, and E-Flex prototypes were described as fake “cinematic props.”

Unfortunately, the situation has not improved at present, as it became known that Karma Automotive is declaring bankruptcy. Several senior executives also left the company, including executive director Kevin Pavlov, as well as vice president of autonomous driving and director of the Karma safety program. About 15 employees were laid off in mid-May, and Karma plans to reduce its workforce to 38 people.

It is known that Karma Automotive also tested a Dodge-based van with Level 4 autonomous driving technology, but the testing was supposedly canceled because the poor quality of work of former BMW technicians made it a “serious security risk”. In addition, allegations of ill-treatment of personnel, poor workmanship and deception appeared. By filing for bankruptcy, a company can reorganize its debts, but given the company’s current reputation, its future looks bleak.