Fisker has a range problem with doubts about whether it can reach its destination of creating 2,000 autoworker jobs building 100,000 plug-in hybrids per year at the 3.2 million square-foot factory in Delaware before it runs out of cash.
Penske Automotive Group is opening the first Fisker dealership in Arizona – Fisker of Scottsdale. The addition of the new Arizona outlet brings to 80 the number of independent retail locations in the US, Canada and Europe selling Fisker EVs. The Karma model is sold through 48 outlets in North America, and will soon be distributed for the first time in China and the Middle East following new retail agreements.
The Karma sedan has more than twice the economy (54 MPGe) and creates about half the emissions (169g CO2/mi) compared to what Fisker says are competitive luxury cars. U.S. pricing starts at $103,000, not including a $7,500 federal income tax credit and other local incentives – subsidized by taxpayers, or what critics call socialism for the rich.
Fisker was the recipient of a controversial taxpayer-subsidized $529 million loan from the Department of Energy in 2010 as part of an abortive federal government effort to prod development of so-called advanced-technology vehicles and create jobs. Part of the loan was for using a closed General Motors plant in Wilmington, Delaware – the home state of vice president Joe Biden – to build the small compact car, then code named Nina. Fisker said that about one-third of the total loan amount – $190 million – was used mostly for Fisker Karma, which is now in production in Finland.
Ultimately, Fisker was unable to meet the deadlines imposed by DOE and the rest of the loan was put on hold last May. This was after the DOE program came under attack because of the collapse of solar panel maker Solyndra and the demonstrably dubious prospects of other loans and loan applicants under what is arguably a failed stimulus package from the ‘no jobs’ Obama Administration.
Fisker, which has never earned a profit since its 2007 inception, says it is now pursuing both private equity and the resumption of government financing. However, the private money raised thus far is apparently not enough to keep the company building the Karma in Finland (hardly any U.S. job creation there), invest in the Atlantic, aka Nina, and earn a profit.
See also:
- No Jobs Crisis Continues in May as Washington Dithers
- Fisker Expands Karma Battery Recall for Potential Fires
- Fisker Shows Atlantic EV – Will It Ever Be Built?
- A123 Recalls Lithium Ion Batteries Shipped to Fisker, Others
- DOE Nixes Carbon Motors Loan in Taxpayer Subsidy Storm
- Fisker Automotive Makes Tom LaSorda CEO
