One-Man Revolution

Some observers are skeptical the new company can achieve the sales volume necessary to survive for the long term, particularly after the major auto manufacturers start to push more aggressively into the green luxury market.

“People are interested, and people will buy from Fisker,” says Art Spinella of CNW Marketing Research, an independent automotive research firm in Bandon, Ore. “But only if [Fisker is] the only one producing a car like this.”

Spinella says once a competing car is available from the likes of General Motors, Fisker would be in trouble. “Small players can’t succeed in this business. They may be around for a while before they are crushed by Toyota, GM, or Honda, who will jump on the opportunity and make the same type of car.”

Milton Pedraza, the chief executive officer of the Luxury Institute, a research firm in New York that studies the buying habits of the wealthy, says high-end hybrid cars, such as Lexus’ GS 450h and LS 600h, definitely resonate with consumers.

He believes that it is explicitly because of Lexus’ headway in this segment that Fisker Automotive has the potential to flourish. “The success of the GS hybrid meant that there is space for this high-performance, high-styling, and high-green kind of automobile,” Pedraza says.

He also believes that the Fisker nameplate can go a long way with wealthy buyers, who do not mind paying more for uniqueness.

However, he says Fisker Automotive could end up denting its high-end cachet by introducing lesser models later. “Many consumers are tired of having manufacturers sell you a $120,000 car, then turn around and sell somebody else a $30,000 car,” Pedraza says. “When the lower-priced car is offered, there will be a major disconnect. The buyers of the more expensive car will say, ‘Am I overpaying?’”

And if exclusivity is one of Fisker Automotive’s big selling points, that is not without its own set of potential problems. Because Fisker Automotive isn’t a big brand with a large dealer network, there may be concerns about service and reliability that could turn some buyers off. “I think consumers will believe the design and performance credentials,” Pedraza says. “But what about the maintenance and servicing? What kind of experience is the customer going to get? It’s the things that make Lexus great.”

Next: A Look at the Competition
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