According to industry rumours, Last week, Nissan entered into advanced negotiations to invest in struggling start-up electric vehicle manufacturer Fisker. This potential deal could grant Nissan access to an electric pickup model while extending a much-needed financial lifeline to the struggling startup. Sources close to the matter, who opted for anonymity due to the ongoing nature of the talks, indicated that the deal is on track to be finalized later this month.

Fisker has encountered difficulties in promoting its flagship Ocean electric crossover, attributed partly to diminished demand following high-interest rates. With current financial resources deemed “insufficient” to sustain operations over the next 12 months, the company faces the stark possibility of implementing production cuts, reducing investments, streamlining operations, and further workforce reductions without additional financing.

Key aspects under consideration involve Nissan injecting over $400 million into Fisker’s truck platform. Additionally, discussions include plans for Nissan to commence production of Fisker’s proposed Alaska pickup from 2026 onwards at one of its U.S. assembly plants. Nissan would also leverage the same platform to develop its own electric pickup. Notably, Nissan boasts assembly plants in Mississippi and Tennessee.

Fisker’s recent announcement on Thursday, disclosing uncertainties about its continuity as a viable business and plans to reduce its workforce by 15 percent, coincided with reports of negotiations with an undisclosed “large automaker” for potential investment and collaborative development endeavours.

A spokesperson for Fisker declined to provide a comment on speculative matters, while representatives from Nissan were not immediately reachable for a response.

According to one of the sources involved in the negotiations, the term sheet has been prepared, and the deal is progressing through the due diligence phase.