Fisker Automotive secures the Dept of Energy loan, allowing them to reopen old GM plant in Delaware

Image of the Fisker Karma courtesy Fisker Automotive

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The Department of Energy recently announced closing of the $528.7 million loan to Fisker Automotive. The loans are one of those announced by the DoE last summer supporting several companies working on green transportation technology and vehicles. In Fisker's case the loans are for the development and production of two lines of plug-in hybrid electric vehicles (PHEV). These are the Karma, a full-size, four-door sports sedan, and a line of family oriented models being developed under the company’s Project NINA program. As a result of the loan Fisker Automotive will reopen a former GM auto plant in Delaware.

Fisker's design is plug-in hybrid EV which has a 50 mile range in all-electric mode. An onboard efficient gasoline engine can recharge the battery pack, or you can plug it into an electrical socket for recharge. Studies have shown that typically Americans drive less than 50 miles a day, making the 50 mile electric range adequate for the majority of daily driving needs. Of course some people have exceptional driving needs and there are times when the people who typically drive less than 50 miles a day take long road trips. For those times the onboard gas engine generates electricity, and of course electricity is widely available. Fisker claims that if one drives their Karma (the luxury sedan) less than 50 miles per day they would only need to refill the gasoline tank once a year, and still drive all year long.

The loan agreement between the DoE and Fisker is not an outright "here, have some money" deal, but involves several stages of developing their business into a credible car company. In the initial stage Fisker is to "qualify engineering integration costs," working with suppliers to integrate components into the design of the Karma as well as designing tools and manufacturing processes. The Karma sedan is scheduled to begin appearing in showrooms in late 2010. Manufacturing of the Karma is being done at a plant in Finland whereas the former GM Boxwood plant is expected to be the manufacturing site of the more modestly priced sedans in Fisker's Project NINA product line. The design of the NINA models and the purchase and retooling of that manufacturing plant is the second stage of Fisker's DoE loan.

So far Fisker has not said much about the Projecte NINA models.  Production is slated for 2012 and the target price is $39,000 (after EV tax credits).

The Department of Energy’s Advanced Technology Vehicle Manufacturing Program supports the development of advanced technology vehicles with improved fuel efficiency that help reduce the nation’s dependence on oil. The agreement with Fisker Automotive is the fourth such loan to be made with an advanced technology vehicle manufacturer.

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