Fisker Suspends Karma Output

Fisker Automotive Inc. tells Bloomberg News it has been forced to halt production of its Karma extended-range hybrid sedan until it obtains more lithium-ion batteries.

The company's battery supplier, A123 Systems Inc., filed for Chapter 11 last month.

Fisker CEO Tony Posawatz notes that switching to a new supplier would require testing and evaluation that could take as long as a year. So the carmaker is eagerly awaiting the sale of A123's assets in a court-supervised auction that begins next week and could be decided by mid-December.

The acquisition of A123's automotive unit by either of the highest-profile bidders Johnson Controls Inc. and China's Wanxiang Group would be "fine" with Fisker, according to Posawatz. He hopes the new owner would quickly resume battery production.

Karma inventories are running low, but the carmaker still expects to deliver about 2,000 units by year-end.

A123's bankruptcy is only the latest setback for Fisker, Bloomberg notes. The company has recalled the Karma three times, lost a $529 million government loan and suspended work on its second model, the Atlantic. That car's mid-2012 debut has been delayed by at least two years. Hurricane Sandy destroyed 340 unsold Karmas with a retail value of at least $35 million.