Fisker Automotive has laid off a total of 66 people, including 20 at a former GM plant in Delaware, and another 40 contractors in California. The layoffs come as Fisker attempts to re-negotiate loans from the Department of Energy that were contingent on Fisker meeting sales targets for its Karma sedan, which Fisker failed to do.
While the DOE loaned Fisker $509 million, Fisker has only $193 million so far. The money was earmarked to help engineer a new vehicle, dubbed the Nina. Fisker had hoped to employ 2,000 people at the Delaware plant. The Karma has been hampered by a series of delays and false starts, leading to speculation that the project was little more than vaporware. Fisker is also pursuing private equity financing in lieu of government loans.