Fisker May Scrap Plans for Delaware Plant

Fisker Automotive Inc. says it is reviewing its plans to build its new Atlantic extended-range hybrid at a former General Motors Co. factory in Wilmington, Del., because it lacks the funds to retool and staff the facility.

Fisker says it has other unspecified options for manufacturing the $50,000-$60,000 plug-in sedan and plans to make a decision by this summer.

The uncertainty means that the Anaheim, Calif.-based startup will not begin producing the Atlantic later this year as planned. Fisker halted preparations at the Wilmington plant in February after the U.S. Dept. of Energy froze a $529 million loan because the company had missed several deadlines.

Fisker has raised $392 million in private financing this year and hopes to boost the total to $500 million. CEO Tom LaSorda says the company also is seeking strategic partners willing to inject fresh capital.

The production site for the Atlantic could depend on where the necessary financing comes from, according to LaSorda. He says that overseas investor could mean the car would be built abroad.

Co-founder and Chairman Henrik Fisker insists the delay won't scuttle the Atlantic. "This car will be built," he declares, "with or without the DOE."