The Strategist

Faraday Future: less than a month to go and countless problems

12/26/2016 - 15:15

Faraday Future fired two top executives. Marco Mattiacci, ‎Global Chief Brand & Commercial Officer and Jörg Sommer, Vice President for Product Marketing and Growth left the US-Chinese start-up, reported The Verge.

Maurizio Pesce
Maurizio Pesce
Mattiacci, former Head of Ferrari team in Formula 1 and executive at the Italian automaker's offices in North America and the Asia-Pacific region, has been with Faraday Future during just seven months. Mr. Sommer, having experience of working in senior positions in Volkswagen, Daimler, Opel and Renault, joined Faraday Future three months ago. Faraday Future explained dismissal of the top managers, who are paid compensation, by need to reduce costs. As reported by media, the company has serious financial problems. Rising debts prevent the automaker from paying bills to suppliers, some of whom have already sued Faraday.

Since its founding in May 2014, Faraday has hired about 1,400 employees. Many of them were talented people from legendary automotive companies and Silicon Valley. 130 of them had worked for Tesla, and about 60 - for Apple. However, and Faraday did not announce who is in charge of the company even after two years of its existence. The company’s representatives are declining to answer the question whether Faraday is currently looking for a person for the CEO’s position.

Earlier, media told about Faraday Future’s problems with market launch of the ambitious electric crossover. The company is balancing on the verge of bankruptcy.

Experts have long doubted Faraday Future’s ability to start serial production of an electric crossover. After global presentation of FFZero 1, the company has officially announced start of construction of a first plant near Las Vegas. Photos from the ceremony gave rise to many doubts.

Now there is information about problems with financing from part of the company’s co-founder. As reported, the latter has chosen Internet technologies and smartphones development his top priority. In other words, tomorrow of Faraday Future remains unfunded.

Premiere of the electric crossover is scheduled for January 2017. However, if the new product does not have a desired effect on potential investors, it will remain unsold at the stage of concept. One of the former employees says that the company plans to show five prototypes at the event in Las Vegas. Other workers say that Faraday will have difficulties with presenting a finished, ready-to-use car. It is said that the car of the future, equipped with a variety of touch screens, will cost almost $ 200 thousand.

The manufacturer has not yet introduced technical information about the model. However, already published teasers suggest that the car’s batteries are located under the cabin floor, the vehicle is equipped with LED, mirrors replaced by cameras, and the body will be a cross between a classic hatchback, wagon and crossover.

Meanwhile, Faraday’s marketing department is trying its best. The company’s official website has launched a timer that counts down minutes before the show. Underneath, animated particles are coming together to form to a silhouette of a futuristic car.

Faraday’s representative said the company is "working on perhaps the most advanced and revolutionary electric vehicle. We spent over $ 600 million to bring that image to life. The project employs more than a thousand employees. We look forward to the time when we can present our car at CES 2017".