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‘Green Car’ Maker Fisker Lays Off Workers

From the Gaia cultists at the Associated Press:

Electric car maker Fisker: Layoffs in Del., Calif.

By RANDALL CHASE, AP Business Writer
February 6, 2012

DOVER, Del. (AP) — Fisker Automotive, an electric car maker that received a half-billion-dollar loan from the federal government, said Monday that it has laid off workers in Delaware and California.

The layoffs include 26 workers at a former General Motors plant in Wilmington that Fisker is retooling to manufacture its Nina plug-in hybrid sedan. Another 40 contractors and employees who were working in design and development of Fisker’s Karma luxury car in Anaheim, Calif., also have been cut.

The layoffs come as Fisker is seeking to renegotiate its loan agreement with the Department of Energy.

Fisker has received $193 million of the $529 million DOE loan, mostly for work on the Karma, which sells for about $100,000. The introduction of the Karma was delayed because of regulatory issues and battery pack problems that prompted a voluntary safety recall by Fisker.

This is just what the world has been waiting for. A $100,000 electric car.

The DOE made loan availability for the Nina project contingent on Fisker meeting development and sales milestones for the Karma, which the company missed. Fisker is now negotiating with the DOE to modify the loan agreement so funds for that project can be released

In other words, Fisker hasn’t been able to sell its cars. But the taxpayers will continue to lend them money, anyway.

Which sounds very familiar.

But Levin said he had spoken with Fisker co-founder and chief operating officer Bernhard Koehler last week and believes that the company and the DOE are close to signing an agreement.

A DOE spokesman did not immediately return a telephone message seeking comment.

In 2009, Vice President Joe Biden headed joined Fisker officials in Delaware in announcing the resurrection of the former GM plant, and Delaware’s Council on Development Finance approved a $12.5 million loan to Fisker to help build the Nina in Delaware.

The loan will become a grant if Fisker spends at least $175 million renovating the old GM facility and shows that it created 2,495 jobs in five years.

The state also agreed to provide a $9 million grant to help Fisker pay utility bills while the former GM plant is retrofitted and restarted. About half of that grant has been used to date, Selander said…

Delaware’s taxpayers love giving money to car makers for the super rich.

While continuing to negotiate with the Department of Energy, Fisker also is pursuing alternative financing that could prove critical if talks with DOE fall through. Fisker said it raised $260 million in private equity in late 2011, bringing total private equity financing to more than $850 million.

"We’re always in the market for equity," Ormisher said.

We thought private equity was evil?

Or is it only evil when Republicans do it?

This article was posted by Steve on Tuesday, February 7th, 2012. Comments are currently closed.

8 Responses to “‘Green Car’ Maker Fisker Lays Off Workers”

  1. Rusty Shackleford says:

    “…contingent on Fisker meeting development and sales milestones for the Karma, which the company missed.”

    Yeah, that Karma’s a b*tch.

  2. GetBackJack says:

    Internal Combustion, Petroleum-based car makers that have disappeared just since1977 –

    AC, Acadian, Albany, Alpine, American Motors Corporation (AMC), Anadol, Autobianchi, Avanti, Bricklin, British Leyland, Checker, Coriasco, Crayford, Crespi, Custoka, Davrian, Dino, Dutton, Elegant, Eliette, Excalibur, Fairthorpe, Felber, Fiberfab, Giannini, Ginetta, Glassic, Gremlin, Hillman, Hongki, Hornet, Humber, Innocenti, Jensen, Leontina, Matador, Matra-Simca, Melkus, Monteverdi, Moretti, MP Lafer, Murat, NSU, Pacer, Panther, Peykan, Princess, Puma, Ranger, Reliant, Saporoshez, Sbarro, Scaldia, Shanghai, Scorpion, Shekate Sahami, Shiguli, Simca, Strato, Sunbeam, Syrena, Tatra, Technical Exponents, Tiffany, Tofas, De Tomaso, Toro, Trabant, Triumph, TVR, Valiant, Vanden Plas, Wartburg, Wolga, Wolseley, YLN, Zastava, ZAZ, ZIL

    Ten major car brands that have disappeared in America –

    Studebaker, AMC, Dusenberg, Pierce Arrow, Muntz, Crosley, Cord, Geo, Stutz and Tucker.

    If we’re going to celebrate (or) lament the passing of a car company that made a stab at creating a new brand and developed innovations to set themselves apart, let’s be honest about the History behind how hard it is to (a) make that happen (b) compete against the enormity of select brands and (c) it’s a lot harder than it looks to get people to buy your product.

    Ask Mr. Tucker.

    • Rusty Shackleford says:

      Evidently, as much as Obama likes to spout rhetoric that sounds really clever and pithy, he’s never one to cite a simple old Texas cowboy exression: “You can’t push a string”.

      People will buy these cars when certain things happen. And one of those things scares me. To wit:

      Given that the greatest liar ever to hold office sees that the ‘lectric cars aren’t moving…he has no doubt had numerous “think-tanks” with his esteemed “thinking uber-alles” folks who have necessarily told him the what’s-what about it. And one of the things they told him that “gas is too cheap…the American people won’t buy hybrids or electric cars unless, at our estimation, gas hits five dollars a gallon…that seems to be the trade-off point.”

      So, Mr Ears has thought that through as thoroughly as a ten-year-old thinks that he can make it across the busy street on his skateboard while reading a comic book. So, he’s doing that which is necessary to make “energy prices necessarily skyrocket”.

      What confuses me is the Keystone deal. I thought that private enterprise would take care of itself. Was it simply the federal permit that Obama killed? I’ll admit that I am somewhat ignorant. I guess there’d have to be some sort of gummint agreement between the US and Canadiastan.

      Well, I guess if anyone had any doubt as to what this loser communist is about, they can wonder no longer. Unless they’re clearly stupid.

    • proreason says:

      One problem is that none of those other companies was subsidized by taxpayers who had no choice in the matter.

      Another problem is that there are starup grocery stores all the time. But none of them would ever consider selling bananas for $2.50 a pound.

  3. heykev says:

    If I understand Millionaires and Billionaires are BAD when buying yachts and jets and not paying their fair share. But when they purchase electric cars – because no one apart from them can afford these sky high prices they are Good…

  4. jackrv says:

    Two of those listed, Gremlin and Pacer, were AMC models. They were not car companies.

    And if I remember correctly, the Valiant was a Plymouth model


  5. P. Aaron says:

    If Obama or Biden show up to bless a factory, it goes into a death spiral.

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