Karma Automotive Changes Strategy, Workers Laid Off Across SoCal

IRVINE, CA —Southern California-based luxury electric vehicle automaker and high-tech incubator Karma Automotive announced a $1 million investment in a new dedicated design studio at its global headquarters in Irvine. This move furthers the company's plans to drive the company’s unique design identity in the Karma products of the future, even as the company left a multitude of southern California workers in the dust.

While a new Chief Operating Officer worked to rebuild their Orange County program, the "top-to-bottom reorganization" resulted in layoffs for many of the company's Orange County workers as Karma re-brands itself as a "high-tech" incubator.

Chief Technology Officer, Bob Kruse, former GM engineer, and developer of the Chevy Volt, has left his post, Karma spokesperson Dave Barthmuss confirmed to AutoNews.com.

Detroit's VLF Automotive executive Gilbert Villarreal has joined the team as Chief Operating Officer and manager of the corporate restructuring. Villareal will "make sure Karma grows as a high tech incubator and creator of luxury vehicles," Barthmuss said.

As of this report, it was unclear how many workers found themselves unemployed after the late October reorganization. Patch has reached out to Karma and will update this report when that information is received.

According to workers' reviews of the company on Indeed.com, the new COO has created a "hostile work environment."

"Half of the workforce was laid off or let go, including C-Suite, directors, managers, salary and hourly employees," a former Senior Buyer, who remained unnamed, reported on the job-seeking website.

Current employees of Karma, who wished to remain unnamed, have asked for "more transparent direction."The company has done great things, but the current forecast is downright depressing."

Other current employees stated over the employment site Glassdoor.com that they like the way that the company is headed.

"The new team is working to change old style management," one worker said. "That is infusing new energy across the company."

The Chinese-funded startup is "steering a quick path toward profitability by selling its engineering, design, customization and manufacturing capabilities to other companies," Automotive News reported.

Changes include creating a higher performance Revero as well as an SUV model and replacing the GM-sourced powertrain with a powertrain from BMW, according to Barthmuss.

The goal remains to sell and produce 500 to 1,000 Revero GTs a year out of the Moreno Valley facility. That $100 million innovation and customization hub is open to other automakers through Karma's new 4+1 business plan, Automotive News reported.

Many engineers working for the company were not needed, AutoNews reported Barthmuss as saying.

The company is working to find "the world's long-term energy solutions," Patch was told. Electric vehicles can be leveraged as a "major part of those long-term solutions."