Fisker Automotive Lays Off Workers, Renegotiating Government Loan

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Fisker Automotive Lays Off Workers, Renegotiating Government Loan

Fisker Automotive, an electric car manufacturer based out of Southern California announced that it had laid off employees and contractors at both their headquarters and assembly facility in Wilmington, Delaware as they attempt to renegotiate terms from their $529-million loan from the US Department of Energy.

Fisker spokesman, Roger Ormisher, recently told the Associated Press that Fisker Automotive hopes that they can “reach a resolution soon” with the Department of Energy on revised terms on their low-interest loans. Recently, Fisker missed critical deadlines on the development of their second vehicle which is currently called Project Nina. Project Nina is supposed to be a mid-sized, plug-in sedan to complement the already existing Karma model.

Even though Fisker claims that much of the design, engineering, development, and testing has been done on Project Nina, the automaker said in October that production wouldn’t begin until mid-2013 though some production would occur before the end of 2012.

The Fisker Karma hasn’t been a huge success either, marketed as a range-extended electric luxury sport sedan. It had several delays in its launch and recently went through a recall to prevent a potential battery-pack leak. The layoffs that were announced included 40 employees and contractors in Anaheim, California and 26 workers at their Wilmington plant. Fisker Automotive is currently looking to conserve its cash while renegotiating their loans.

GALLERY: Fisker Karma

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[Source: Associated Press]

  • Chad

    I want to say that I am shocked by this news, but, I’m not. So much tax-payer money wasted.

  • li chou

    Chad,
    I think the U.S. should continue the trillion dollar subsidy of import oil rather than support new technology. It well help China and other countries immensely. If the rest of the world gets a 5 year jump on the U.S. it will be long enough that you may never catch up.