Going green is often portrayed as a noble pursuit for the planet, but there are instances where the effort becomes tangled in policy woes. A case in point is American Lease, a New York-based company that spent around $45 million on 2,800 electric vehicles from Fisker, an EV startup that has since gone bankrupt. These now-defunct vehicles are part of NYC’s Green Rides Initiative, but they come with a host of unresolved issues.
The Ocean, a Fisker SUV meant to revolutionize ride-sharing, is now roaming the streets of New York City as part of this initiative. Most of us may only catch a glimpse of the Ocean a few times, but it raises serious questions about what it truly means to go green.
The Problems with Fisker Cars
The Fisker Ocean made its debut in 2020 but came under scrutiny for multiple safety problems that ultimately led to the recall of all 2024 models and Fisker’s bankruptcy. Despite producing over 10,000 Oceans, only 4,929 made it into the hands of customers. The company faced severe challenges that included:
- Suddenly losing power
- Emergency exit issues
- Malfunctioning dashboard gauges
- Software deficiencies
- Brakes that failed to operate
- “Unintended” vehicle movement
These issues were significant enough for the National Highway Traffic Safety Administration (NHTSA) to step in, warning that a malfunctioning door could prevent occupants from exiting in an emergency, raising the risk of injury.
One Bloomberg reporter recently noted technical quirks, such as the “ghost light” that flashes randomly and “California Mode,” which can cause windows to get stuck. With the original makers of these vehicles out of business, repair support is a challenge, leaving drivers dependent on third-party startups like indiGO Technologies.
The Cost of the Fisker Deal
American Lease managed to acquire these cars for about $16,000 each (€15,000), a significant drop from their original selling price of around $70,000 (€66,000). However, it’s unclear if this price took into account the numerous recall issues and repair costs.
Interestingly, New York City’s push for an all-electric fleet by 2030 has created an unintended marketplace for vehicles from failed electric vehicle startups. Limited supply and decreasing federal incentives have pushed fleet operators to seek out less-than-ideal solutions. The irony is that even the owner of American Lease is skeptical about the Oceans meeting the 2030 deadline.
“We don’t anticipate these cars lasting much past 150,000 to 200,000 miles,” Josh Bleiberg, the executive vice president of American Lease, told Bloomberg.
What does it mean for consumers when a policy initiative intended to promote sustainability leads to the procurement of unreliable vehicles? This dilemma encapsulates the complexity of modern transportation solutions.
How can electric vehicle startups recover from such setbacks? This is a question many in the industry are grappling with as they seek to address the challenges of safety, reliability, and consumer trust.
Will these Fisker vehicles continue to service riders in NYC? Given the entire situation, the outlook does not seem bright, and it raises questions about the future of EVs in urban transport.
What lessons can we draw from this experience? A focus on the quality and safety of EVs, alongside innovative policies, is critical for success in both green initiatives and the automotive market.
If you’re curious to explore more about the evolving landscape of electric vehicles and their impact on urban transport, be sure to visit Moyens I/O for insights and updates.