California start-up Karma Automotive is looking for new profitability. Facing financial difficulties, the company now offers its know-how in terms of engineering, design and design to other companies.
Karma Automotive is also reshuffling its executives. She has already appointed a new operations manager, Gilbert Villarreal, whose job will be to oversee the restructuring of the brand.
In its California plant, Karma Automotive, which unveiled an all-electric concept car in March, has excess production capacity: its facilities could make it possible to design more vehicles than they currently produce (between 500 cars). and 1,000 Revero GT come out every year). However, the company faces unpaid bills and shortages of spare parts supplies. Karma, who would lose about $ 50,000 each sale of a Revero GT (for a sale price of $ 135,000) wants to maintain its level of production.
Reacting to a business plan called "4 + 1", the company wants to offer its infrastructure to other manufacturers and sell its skills in engineering, design and automotive manufacturing process.
Between layoffs, changes of direction and new models
The changes in the management illustrate the difficulties of Karma Automotive. Two weeks ago, Bob Kruse, a former General Motors engineer, known for helping to develop the Chevrolet Volt, left Karma. Earlier in the year, President Dennis Dougherty also surprised the sign by his sudden departure.
Also, the previously mentioned business plan involved the hiring of Gilbert Villarreal, one of the co-founders of VL Automotive in 2012. The spokesman for the brand, Dave Barthmuss, explains that " its role is to ensure our development as an incubator of new technologies and creator of luxury vehicles ". Gilbert Villarreal will have to manage the restructuring, which could lead to layoffs among Karma's thousand employees. " Do we really need all these engineers? No, we do not need it Said Dave Barthmuss.
Karma is now working on a more powerful version of the Revero GT. The company, which currently produces only electric vehicles, also plans to design a new SUV.
It should be noted that Karma Automotive is wholly owned by Chinese investors who, according to the website WardsAuto, have reduced their investments by $ 400 million, leaving $ 100 million to the company.
Source: Automotive News