Electric carmaker Fisker has changed its name to Karma and received financial backing from Chinese billionaire Lu Guanqiu, as it now plans to launch its $115,000 (731,000 yuan) plug-in hybrid coupe with its own name, according to Bloomberg News.
Karma, previously known as Fisker, filed for bankruptcy after it failed to repay $139 million in U.S. government loans. The California-based company now has 300 employees and Lu's support.
According to the report, the company plans to re-launch Karma, the car, next year despite tough competition and the threat of cheap gasoline, which affected the sales of hybrid-electric cars and electric vehicles.
The report said that Elon Musk's Tesla Motors Inc. has its first Model X SUV, while General Motors has a new Chevrolet Volt and BMW is developing a plug-in hybrid version of its X5 SUV.
Chief Marketing Officer Jim Taylor said that Karma was fortunate that Lu is focused on the long-term plan. "He's in this for the long haul," Taylor said. "He also doesn't want to lose a fortune."
Lu, the founder and chairman of chassis components supplier Wanxiang Group Corp., started his career making bicycles and he considered electrified cars as a crowning achievement. Lu wants to develop cars to help solve the country's air pollution problems.
The report said that other Chinese investors have also financed three startup electrified-car companies. Jia Yueting, founder and chairman of Leshi Television, supports Faraday Future, which is working on an EV; while Atieva Inc., founded by former Tesla executive Bernard Tse, is partly funded by Chinese investors.
The Karma has an electric motor and a gasoline engine and can travel 560 kilometers (348 miles) on a charge and a tank of gasoline, Taylor said. On the other hand, the Tesla Model S, a pure electric car, has a range of as much as 295 miles, the company's website said.
Taylor added that the Karma can run 50 miles using just the electric motor, about the same range as the new Chevrolet Volt plug-in hybrid that will be up for sale in January.
According to Taylor, Karma's main attraction is its styling, which is aimed at attracting wealthy buyers.