Fisker Announces Layoffs As Government Loans Frozen

Derek Kreindler
by Derek Kreindler

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.

Derek Kreindler
Derek Kreindler

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  • Wallstreet Wallstreet on Feb 07, 2012

    "Fisker is also pursuing private equity financing in lieu of government loans." Fisker shall be looking at Chinese investors.

  • Pgcooldad Pgcooldad on Feb 08, 2012

    I saw a Karma on the road last summer just south of Chrysler's Auburn Hills HQ. This vehicle is absolutelly gorgeous and I hope that it can survive as an ICE model. Now let's see ... if Sergio can get his hands on this and farms the powertrain to Ferrari ... no, no, no SRT V10, Ferrari already has the FF. Wait this could be the new Maserati ??? Rats, I gotta get back to work!!

  • Geozinger Geozinger on Feb 08, 2012

    I know this would never happen in today's politcial/business environment, but with the fact that the Karma already uses a GM powertrain (less the batteries), wouldn't this make a good acquisition for GM? Unlike the Volt, there could be two flavors of Karma. A regular Karma, with lots of batteries, and Karma Kameleon, with LS9 V8 and something like an e-Assist setup... (This was a tongue-in-cheek suggestion, just to be clear.) I agree with others, though, it is a fantastic looking car.

  • RobertR RobertR on Feb 08, 2012

    I saw one of these driving in the parking lot at Lenox Mall here in Atlanta on Saturday; it is breathtaking in person. And the fact that it weighs more than 5000 pounds is much less surprising once you see it in the flesh. Just a huge automobile. Had dealer plates on it, drove by me twice while I was sitting outside the Starbucks (was the driver just going in circles to gin up interest? Odd guerrilla marketing tactics). It was definitely turning heads. It is convincing as a halo vehicle for electric cars in general, and Fisker in particular.

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