Thus far, sales of the Fisker Karma - $100 million in revenue this far - have not been strong enough to make the startup company profitable.
Fisker Automotive announced today that effective immediately Co-Founder Henrik Fisker will become Executive Chairman of the company and Tom LaSorda is appointed CEO and Vice Chairman of the Board. LaSorda, former CEO of Chrysler and a senior executive at GM before that, joined the electric vehicle company just two months ago and now has responsibility for the running of the company’s day-to-day operations.
In a statement the controversial loss-making company- it has never earned a profit since its 2007 inception- said Henrik Fisker will concentrate on building the Fisker brand in global markets and the styling and design of future Fisker models.
Nevertheless, the future of Fisker is not clear. In 2010, the U.S. Energy Department awarded Fisker $529 million in loans as part of an effort to help development of so-called advanced-technology vehicles. Part of the loan was for redeveloping a closed General Motors plant in Wilmington, Delaware – home state of vice president Joe Biden – to build a small electric car, code named Nina – that has yet to appear. Promised were 2,000 autoworker jobs building 100,000 units per year at a 3.2 million square-foot factory. Fisker said that about one-third of the total loan amount – $190 million – has been drawn, mostly for Karma design and development but the balance is now on hold.
Since May of 2011, Fisker has been in discussions about the terms of the DOE loans, in a thus far unsuccessful attempt to have the timing or milestones modified for its delayed development programs. Meanwhile project Nina has been “temporarily” put on hold until financing, either from the DOE or elsewhere, can be secured.
Call it a wagon or a shooting brake, Fisker Surf is the next EV due from the California company.
Fisker does currently sell the Karma plug-in electric sports car for $102,000 in the United States, but it is made in Finland. Thus far, sales of sports car – $100 million in revenue since December of 2011 – have not been strong enough to make the company profitable. there is a station wagon version in the works.
The DOE advanced technology loan programs have been subject to criticism, particularly among Republicans in Congress, since the bankruptcy of solar-panel maker Solyndra last fall, which was also the subject of taxpayer subsidies. At least two other ‘green’ company startups have failed after receiving taxpayer money through the DOE.
