Fisker Update: Karma, CEO Recalled, Musk Shares His View

Editor’s Note: EarthTechling is proud to repost this article courtesy of Greentech Media. Author credit goes to Eric Wesoff.

Recently we were eyewitness to a Fisker Karma extended range electric vehicle in flames in a parking lot in Woodside, California (see pictures below).

I had spied the smoldering carcass of a Fisker Karma in the Roberts Market parking lot and spoke with the owner of this particular Fisker, Rudy Burger, a managing partner at Woodside Capital Partners. He said that the car was smoking when he pulled it into the parking lot where the fire proceeded to melt the front left side of the vehicle body.

Fisker fire

image via Greentech Media

Burger was unscathed and remains undeterred. In a statement from the billion dollar automotive startup, Burger was quoted as saying, “I have been incredibly impressed with the way Fisker has handled this incident. I have personally started seven technology companies and know from direct experience that the U.S. needs more innovative companies of this type, especially in the automobile sector. Fisker is a great company and one that I am personally planning to invest in. I look forward to getting behind the wheel of my next Fisker.”

A VC colleague once told me that if venture capitalists had tolerance for risk, they’d be entrepreneurs. But Burger remains willing to step into another Fisker. Good for him.

Also in the statement from the firm was information on the root cause of the fire: “The investigation located the ignition source to the left front of the Karma, forward of the wheel, where the low temperature cooling fan is located. The final conclusion was that this sealed component had an internal fault that caused it to fail, overheat and start a slow burning fire.”

Fisker is conducting a recall of the Karma “to have the cooling fan replaced with a unit that meets the required specifications. At the same time an additional fuse will be installed for added protectiom.” Adding that “In their investigation, independent experts established that the incident was not caused by the Lithium-ion battery pack, new technology components, engine component packaging or unique exhaust routing of the Fisker Karma.”

In May of this year, a Fisker set fire to an owner’s garage in Texas.

We get it. Automotive recalls happen all the time. Suzuki just recalled nearly 102,000 Reno and Forenza models “due to an electrical wiring problem, which may lead to headlamp failure.”

It’s just that the optics of this type of incident are absolutely terrible for Fisker. The firm is also the recipient of a DOE loan (See Solyndra, Abound SolarBeacon Power, etc.) and has received funding from the Qatar Investment Authority. Fisker is also tied to the struggling and recently rescued battery maker A123.

Fisker recently crossed the $1 billion mark in investment and is reportedly on the hunt for $150 million more in funding with the help of Advanced Equities, according to DowJones VentureWire.

While vehicles are being recalled, so is corporate leadership.

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