Fisker will not use acquired GM site, says Senator Carper

Article by Christian Andrei, on December 22, 2013

Fisker Automotive Holdings Inc. will not use a closed General Motors site it acquired in Delaware even if its new owner resumes output, according to United States Senator Tom Carper. While Fisker is required under an agreement with the US government to build its Karma unit in the US, it will likely produce any future models out of the country, Carper remarked.

"I'm a glass-half-full guy, but it's hard to see how this ends up with Fisker building cars in Delaware," he said. Carper was one of Fisker's supporters along with Vice President Joe Biden, a former senator from Delaware. Fisker was granted a $529 million loan in 2009 from the U.S. Energy Department but it got only $192 million after the government cut off the support after it failed to meet production milestones on the $103,000 Karma.

The Atlantic, its second model, was supposed to be produced at the Delaware site under the loan agreement but never saw assembly lines as the carmaker stopped production in 2012 after its battery supplier declared bankruptcy and most of its unsold cars were destroyed in Hurricane Sandy.

Fisker’s assets are now being acquired by, Hybrid Tech Holdings LLC, a group led by Hong Kong tycoon Richard Li. US taxpayers lost $139 million of the $192 million Fisker received after Hybrid Tech agreed to pay the Energy Department $25 million to assume the debt. According to Carper, he is planning to meet with carmakers building in the US at the Detroit auto show in January to attract business and jobs to the GM plant.

Topics: fisker, gm

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