Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
  HOME     MENU     SEARCH     NEWSLETTER    
TECHNOLOGY, DISCOVERY & INNOVATION. UPDATED 13 MINUTES AGO.
You are here: Home / Automotive Tech / Faraday Future Lowers Ambitions
Faraday Future Dramatically Lowers Automotive Ambitions
Faraday Future Dramatically Lowers Automotive Ambitions
By Russ Mitchell Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
AUGUST
08
2017
Faraday Future is running on fumes. But it's still running. The Gardena-based luxury electric Relevant Products/Services start-up raised $14 million in emergency funding and will lease an assembly plant at an old factory near Fresno that will enable it to turn out 10,000 cars a year.

The company has dramatically lowered its ambitions. Its goal now is to try to remain solvent enough to start manufacturing and selling the FF 91, a powerful, technology-packed luxurious electric sedan with a base price expected to top $100,000.

As recently as last year, the company had plans to turn out 150,000 cars a year from a massive new $5-billion assembly plant near Las Vegas.

Those plans were dashed when the company's primary investor, Chinese entrepreneur and LeEco Chief Executive Jia Yueting, ran into severe financial difficulty in his home country, including a government-decreed freeze on assets. Faraday financing dried up, and the Las Vegas factory never got off the ground.

Last week, a two-year-old investment firm called Innovatus Capital Partners handed Faraday $13.75 million on a one-year loan, but not before laying claims to Faraday's Gardena headquarters as collateral. The cost of the loan was not made public.

Faraday's new factory sits along a two-lane road in Hanford, a town of 55,000, and a railroad crossroads. Armstrong Rubber Co. first opened the building in 1962 to manufacture tires. In 1985, Italian tire-maker Pirelli bought the factory but shut it down in 2001, citing foreign competition and lower wage rates in Brazil and Venezuela.

The building has been mostly empty since, though late last year a medical marijuana supplier sought city permission to use it as a grow farm and processing plant, provoking a debate over morals versus economic development in the conservative community. The company bowed out in March after the city said it would wait until after the Nov. 18 election to decide.

Then Faraday stepped in. About 400 of Faraday's 1,000 Gardena employees volunteered to drive to the Hanford site on Saturday to "see it, touch it, work on it, paint an FF sign on it," said Stefan Krause, the company's chief operating officer, who joined Faraday in March.

A Deutsche Bank and BMW veteran, Krause is on the hunt for capital to keep Faraday alive. The recently borrowed $14 million is peanuts against the tens to hundreds of millions of dollars Krause must raise.

An assembly plant and a schedule for production will help, he said: "For investors, it makes it more real." The Hanford plant covers a million square feet with a section more than 300 yards long once used for tire making, the right shape and length for an auto assembly line.

When Krause came in last March, he saw how much time and money a brand new plant would require, and steered the company in a new direction. The need for speed is urgent, he said. "It's strategically important to be the second (luxury electric car) after Tesla.

A luxury electric car start-up based in Silicon Valley, Lucid Motors, is also seeking new capital as it races against Faraday and others, including Lynk & Co., a new luxury electric car maker in China that plans to sell in the U.S. through Volvo dealerships.

If Faraday's plans are met, the first production cars will come off the line headed for customers by the end of next year.

© 2017 Los Angeles Times under contract with NewsEdge/Acquire Media. All rights reserved.
May Interest You:

New cars come equipped with safety systems. But how about all the other cars that are more than a year old? No worries... There are plenty of car safety features that are available, affordably, for ALL cars, not just new ones.

See products that are available for YOUR car at: Make My Car Safe, the premium online seller of car safety products for ALL cars.


Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
MORE IN AUTOMOTIVE TECH

NETWORK SECURITY SPOTLIGHT
Although the recent HBO leaks so far have fallen well short of the damage inflicted on Sony, there were concerns early on that hackers were setting the stage for an embarrassing sequel for Hollywood.

SCI-TECH TODAY
NEWSFACTOR NETWORK SITES
NEWSFACTOR SERVICES
© Copyright 2017 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.