Karma and B-ON have teamed up to provide electric delivery vehicles for the North and South American markets.
B-ON is a German manufacturer of light electric delivery vehicles.
Karma continues to build an electric luxury sedan based on the former Fisker Karma.
Karma Automotive and B-ON have announced a partnership that will see the American automaker build light-duty commercial EVs at its factory in California.
B-ON is a German company that specializes in last-mile electric delivery vehicles, meaning small commercial trucks and vans.
With the growing popularity of electric vehicles, electric fleet vehicles, especially those used for in-town deliveries are generating more and more interest from businesses around the world.
This is why B-ON believes that the North and South American markets have a lot of potential in terms of sales for its products.
In order to make its light commercial EVs more competitive in the United States, Canada, and South America, B-ON needs to manufacture them locally in order to avoid special import duties and save on shipping costs.
This is where Karma enters the picture. Indeed, the small automaker benefits from a factory in California that can produce up to 30,000 vehicles per year, which is much more than the number of luxury EVs it can sell in the same timeframe.
In each of the last five years, the company only delivered a few hundred units of the Revero or the GS-6.
This unused production capacity will thus be allocated to B-ON vehicles, of which pre-production will begin in July.
A limited batch of 2023 models will then follow ahead of the start of full-scale production in 2024 once B-ON has made itself known to potential buyers on this side of the Atlantic.
In addition to helping it enter two new markets, the company says that this new partnership could help it meet the demand for its vehicles, which it expects to overtake its German factories’ maximum output.
On Karma’s side, this partnership could also be important in order to provide a second stream of revenue that will help it continue the development of new models.