Karma Automotive turned heads on the other side of the world last week with the debut of its 2020 Revero GT electric vehicle as well as a Pininfarina-designed concept car and its Vision roadster concept car at the automotive exhibition Auto Shanghai.
The launch of its self-described “Big Three” product collection marked the first time the Chinese-backed company based in Irvine has made a big push to promote its vehicles in China.
“This is the first major auto presence for Karma in China and marks a significant moment” for Karma, said Chief Executive Lance Zhou.
The automaker has kept a relatively low profile since parent Wanxiang Group Corp. bought the assets of what was then Fisker Automotive and Technology Group in 2014 but in the past year it’s been in the spotlight under new CEO Zhou with a revamped strategy, a partnership with famed Italian design house Pininfarina and a boost in employment.
Closer to home, the luxe carmaker is turning heads, completing build-out this month of a $7.5 million state-of-the-art powertrain test lab at its Irvine headquarters.
Also this month, it opened the doors to its 556,000-square-foot Moreno Valley production facility which was renamed the Karma Innovation and Customization Center (KICC).
Attendees at the Moreno Valley site—about 50 miles from Karma’s Spectrum-area HQ—also got a peek at the one-off limited edition Revero Black Ocean model that’s been pre-sold.
Karma President and Chief Operating Officer Dennis Dougherty said the 2020 Revero GT is in production at KICC.
“The facility represents a more than $100 million financial investment by Karma,” he said, which “shows we intend to keep great luxury designs [and] develop the right technologies.”
Prices for the new Revero, expected this year, haven’t been disclosed; current models start around $130,000.
Homegrown
Zhou said Karma is focused on “innovation and customization” and can be the “shining star of Southern California” during the Moreno Valley dedication ceremony two weeks ago.
“We expect this facility and the people who work here will play a leading role in our path to success,” he said. “We will remain true to our luxury EV niche—Karma will never be a mass market automaker.”
Zhou outlined the brand’s new business plan last month in an interview with the Business Journal and emphasized its dedication to Orange County as one of the few car companies making vehicles in California.
“While others have left our state, Karma decided to stay and do business in California,” he said. “We chose to start selling cars in the U.S. with a special focus on California because this is the toughest luxury market.”
While Karma plans to focus its growth on North America, it will expand to Europe and the Middle East next year followed by Asia with vehicles in China by 2021.
“If we can win here we will win everywhere, all over the world,” Zhou said.
Its current dealer network consists of 18 locations in the U.S., Canada and Chile.
Karma hasn’t disclosed sales but its long-term goal is to see about 5,000 vehicle sales a year.
Its manufacturing facility, which employs about 200, can produce up to 10,000 vehicles annually.
Employees inside the pristine facility were seen working on different stages of the manufacturing process starting from welding pure aluminum into the body of the car, which consists of 408 parts.
The company said its models are very much handcrafted with only a few robots—23 to be exact—and is constantly inspected for any imperfections.
Karma officials said they can customize any part of the car for a client with the only limitation being the customer’s budget.
New Dawn
Zhou said the new facility and expanded production are a “new dawn” for the company.
The electric Revero GT shown off last week features improved technology with interior and exterior customization options. It’s powered by a BMW-supplied turbo in-line three-cylinder engine that allows the car to go from 0 to 60 in 4.5 seconds, almost a full second faster than its predecessor, and supports a more powerful battery.
The second car showcased last week was the Pininfarina GT coupe, the first example of Karma’s partnership with the Italian firm struck earlier this year. The result is a new body style, panels and interior. It also marked the first time Pininfarina assigned the Gran Tourismo designation to a collaborative project.
Hinting at a future offering of full-battery electric vehicles, Karma revealed its SC1 Vision concept car, with an infotainment system including 5G connectivity and communication integrating voice, eye and touch interfaces.
Zhou said the automaker has been silent during the last few years as it’s focused on building the company but it’s now singing a different tune.
“Karma is ready for our relaunch,” he said. “We are ready to tell everybody that Karma has arrived.”
