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Fisker (FSR) Adopts Dealer Partnership Model to Boost Sales
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Fisker announced to develop an innovative Dealer Partnership model in North America. The new strategy aligns with FSR’s asset-light business model and will expedite the expansion of its sales and delivery network.
In Europe, the automaker plans to pursue a hybrid model comprising direct sales and dealer arrangements. Fisker expects to have nearly 100 dealer locations in both North America and Europe.
While the firm manufactured more than 10,000 Ocean Sport units in 2023, it delivered only 4,700 units due to distribution constraints. To overcome this drawback, the company has been in talks with several potential dealers since November 2023. It now expects Fisker Oceans to be placed on existing car dealerships by the end of the first quarter of 2024.
Per Henrik Fisker, chairman and CEO of Fisker, the company plans to add around 50 dealer partners in the United States and Canada and the same number of dealer locations in Europe this year.
The scope of the model is not limited to offering no-haggle pricing, but it extends far beyond that and grants dealers larger market territories for maintaining competitive prices without local competition.
Role of the Dealership Model in Boosting Sales
Through the Dealer Partnership model, Fisker can rapidly grow its partner network, which will help the company reach millions of car buyers overnight. The model may also attract dealers that are currently not selling electric vehicles (“EVs”). It will also provide FSR with the necessary platform to display its forthcoming high-volume EVs, such as PEAR and Alaska.
Sustainable Collaboration and Enhanced Customer Experience
Fisker's sustainability mission does not require its dealers to make extensive, time-consuming or expensive changes to their existing facilities. The corporate identity features, developed by Fisker, will help dealers to quickly commence sales and service.
In global markets, FSR will continue to maintain its Fisker Lounges, allowing customers to experience the brand and generate sales leads for its dealers. Currently, the firm has two Fisker Lounges in North America, including one in Los Angeles and the other in New York. Meanwhile, in other locations, it has Fisker Center+.
The company aims to collaborate with dealers that emphasize excellent customer satisfaction, provide streamlined customer support and service and enhance test-drive opportunities as the range of Fisker models expands. Dealers will facilitate financing and insurance arrangements and assist customers with warranty-related matters.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have improved by 8 cents and 7 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 11.8%. The EPS estimates for 2023 and 2024 have improved by 14 cents and 13 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 11% and 45.4%, respectively. The EPS estimates for 2024 and 2025 have moved up $1.98 and 5 cents, respectively, in the past 60 days.
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Fisker (FSR) Adopts Dealer Partnership Model to Boost Sales
Fisker announced to develop an innovative Dealer Partnership model in North America. The new strategy aligns with FSR’s asset-light business model and will expedite the expansion of its sales and delivery network.
In Europe, the automaker plans to pursue a hybrid model comprising direct sales and dealer arrangements. Fisker expects to have nearly 100 dealer locations in both North America and Europe.
While the firm manufactured more than 10,000 Ocean Sport units in 2023, it delivered only 4,700 units due to distribution constraints. To overcome this drawback, the company has been in talks with several potential dealers since November 2023. It now expects Fisker Oceans to be placed on existing car dealerships by the end of the first quarter of 2024.
Per Henrik Fisker, chairman and CEO of Fisker, the company plans to add around 50 dealer partners in the United States and Canada and the same number of dealer locations in Europe this year.
The scope of the model is not limited to offering no-haggle pricing, but it extends far beyond that and grants dealers larger market territories for maintaining competitive prices without local competition.
Role of the Dealership Model in Boosting Sales
Through the Dealer Partnership model, Fisker can rapidly grow its partner network, which will help the company reach millions of car buyers overnight. The model may also attract dealers that are currently not selling electric vehicles (“EVs”). It will also provide FSR with the necessary platform to display its forthcoming high-volume EVs, such as PEAR and Alaska.
Sustainable Collaboration and Enhanced Customer Experience
Fisker's sustainability mission does not require its dealers to make extensive, time-consuming or expensive changes to their existing facilities. The corporate identity features, developed by Fisker, will help dealers to quickly commence sales and service.
In global markets, FSR will continue to maintain its Fisker Lounges, allowing customers to experience the brand and generate sales leads for its dealers. Currently, the firm has two Fisker Lounges in North America, including one in Los Angeles and the other in New York. Meanwhile, in other locations, it has Fisker Center+.
The company aims to collaborate with dealers that emphasize excellent customer satisfaction, provide streamlined customer support and service and enhance test-drive opportunities as the range of Fisker models expands. Dealers will facilitate financing and insurance arrangements and assist customers with warranty-related matters.
Zacks Rank & Key Picks
FSR currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , NIO Inc. (NIO - Free Report) and Toyota Motor Corporation (TM - Free Report) . While VLVLY sports a Zacks Rank #1 (Strong Buy) at present, NIO and TM each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have improved by 8 cents and 7 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 11.8%. The EPS estimates for 2023 and 2024 have improved by 14 cents and 13 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 11% and 45.4%, respectively. The EPS estimates for 2024 and 2025 have moved up $1.98 and 5 cents, respectively, in the past 60 days.