Fisker to Build Atlantic Sedan in Delaware

Fisker Automotive Inc. still intends to produce its Atlantic extended-range hybrid sedan and other future vehicles at factory in Wilmington, Del., CEO Tony Posawatz tells the Automotive Press Assn. in Detroit.

Work at the former General Motors Co. plant halted in February when the U.S. Dept. of Energy froze Fisker's $529 million loan because the company missed milestones for sales and product development. Fisker warned in April it might move production overseas.

The company still hopes the DOE might reinstate the loan now that Fisker has met the milestones, Posawatz says. But he adds that the DOE won't make any decision about the funding which was part of a politically polarizing alternative-energy program until after the presidential election next month.

Posawatz, former head of GM's Chevrolet Volt plug-in hybrid program, joined Fisker five weeks ago with a mandate to fix the company's funding shortage, quality problems and development delays. He says Fisker is holding talks with potential future partners, including discussions about sourcing the Atlantic's engine from BMW AG. GM supplies many components of the Karma's engine.

Posawatz reiterates that Fisker aims by year-end to finalize and disclose details about the Atlantic and its launch in the "not-too-distant future." He says the company has just resumed development work on the new car, which has been 90% designed via computer modeling. Fisker aims to begin building prototypes next year.

The midsize Atlantic, which has a target price of about $55,000, will ride on a different platform than the $107,900 Fisker Karma sedan, according to Posawatz.

The company's goal is to eventually hold an initial public stock offering. Posawatz says former CEO Tom LaSorda stepped down in July because he wasn't willing to make the three- to five-year commitment investors expect from the head of a company that goes public.