Fisker May Abandon U.S. Assembly Plant

Fisker Automotive Inc. says it may not produce its Karma and just-announced Atlantic extended-range hybrid cars at its factory in Wilmington, Del., after all.

The company halted preparations at the former General Motors Co. plant in February after the U.S. Dept. of Energy froze a $529 million loan because Fisker missed sales and product development deadlines.

The California-based company announced last week it had lined up another $392 million in private financing so far this year. But on Tuesday CEO Tom LaSorda said Fisker still lacks the funds to finish and staff the factory. He says the company is considering options, including production overseas.

In the meantime, the uncertainty means Fisker is not likely to begin making the Atlantic (previously known as the Nina) anywhere this year as previously planned. Company co-founder and Chairman Henrik Fisker insists the Atlantic will go into production eventually with or without the DOE loan. But LaSorda says the manufacturing site could depend on where the necessary financing comes from.

Fisker now says the Atlantic, previously expected to be priced at about $39,000, will cost between $50,000 and $60,000 when it does go into production. The Karma, currently priced between $103,000 and $116,000, is assembled for Fisker by Valmet Automotive in Finland.