Former President Donald Trump at Foxconn's groundbreaking ceremony in Mt. Pleasant, Wisconsin in June 2018. AFP via Getty ImagesFisker Inc.'s plans to produce low-cost electric cars in the U.S. together with Foxconn gave hope that the massive Wisconsin industrial site of Taiwanese manufacturing giants might be able to live up to the state subsidies that have earned it billions. However, as Fisker Inc. begins to build production plans, the state bans automakers selling direct to consumers is a stumblingblock.Fisker stated in May that it was looking at four possible sites for the production of the personal electric automobile revolution (PEAR). The Los Angeles-based company used a Foxconn vehicle architecture, which includes the Mt. Pleasant, Wisconsin facility. Although it is a great location, state laws restrict the sale of vehicles to franchise dealers. The company is looking at other locations.Fisker's only issue is Foxconns decision. But, for me, I don’t want to begin producing the state you have now where I can directly sell my car. CEO and cofounder Henrik Fisker told Forbes. They can change these, but they are not right now.Henrik Fisker, CEO of Fisker Inc. and cofounder. Fisker Inc.Fisker, like Tesla, wants to sell electric cars directly to customers via its website and company shops. This is a problem in many states, where powerful and politically influential dealer groups have helped to create rules to prevent automakers from selling their products at retail. Elon Musk's electric vehicle powerhouse has been fighting for over a decade with state legislatures to allow Tesla to open its own stores in Wisconsin. Although sales are not permitted in Milwaukee, the company does have a showroom and service centre. Despite Texas baning direct sales of carmakers, Tesla plans to build a new plant in Austin to make Model Y hatchbacks as well as Cybertruck pickups.Fisker, unlike Tesla, relies on its manufacturing partners to bring its vehicles to market. Magnas, an Austrian vehicle assembly plant, will begin production of the battery-powered Ocean SUV in late 2022. Fisker estimates that the model will be available for purchase starting at $38,000 and will receive 25,000 reservations by next year.PEAR is a smaller vehicle that can be used in urban areas and will cost around $30,000, before any tax incentives. Fisker is not yet sharing details or images of the vehicle, but hopes to start production in late 2023. Foxconn will allow it to produce 150,000 units per year. It remains to be determined where exactly that will occur.Henrik Fisker states that we have voiced our opinions on Wisconsin's auto sales regulations, but he doesn't go into detail. They might consider making something that would allow us to do this.David Callender, a spokesperson for the Wisconsin Economic Development Corporation declined to comment.Foxconn's Wisconsin facility, which was eligible for tax breaks of up to $4 billion at the time it was announced in 2017, is now a white elephant. It has fallen short of expectations. The initial goal to build a flat-screen panel manufacturing plant worth $10 billion and employ up to 13,000 workers was not achieved. In April, the Taiwanese company reached a new agreement with Wisconsin that reduced taxes for a smaller manufacturing plant. However, details about Foxconn's new plans for Mount Pleasant have not been revealed.Its central location near U.S. auto parts manufacturing, transportation networks and other industrial needs makes it an outstanding site that impresses Fisker, a career auto designer.It's more than one facility. It's an industrial park. I was truly impressed by the work done by Foxconn as well as the infrastructure built by Wisconsin. It's an incredible site.Stocks of Fisker rose 3.3%, to $14.95 at 11.54 in New York Stock Exchange trading Monday.
