Fisker Automotive Halts Production, Lays off workers in Delaware and California

Well this isn’t very promising – The Associated Press Reports that Fisker Automotive, the electric car maker that received a $529 million loan (only $193 million has been received) from the federal government, said Monday that it has laid off workers in Delaware and California. “The layoffs include 26 workers at a former General Motors plant in Wilmington that Fisker is retooling to manufacture its Nina plug-in hybrid sedan. Another 40 contractors and employees who were working in design and development of Fisker’s Karma luxury car in Anaheim, Calif., also have been cut.

The layoffs come as Fisker is seeking to renegotiate its loan agreement with the Department of Energy.

Fisker has received $193 million of the $529 million DOE loan, mostly for work on the Karma, which sells for about $100,000. The introduction of the Karma was delayed because of regulatory issues and battery pack problems that prompted a voluntary safety recall by Fisker.

The DOE made loan availability for the Nina project contingent on Fisker meeting development and sales milestones for the Karma, which the company missed. Fisker is now negotiating with the DOE to modify the loan agreement so funds for that project can be released.

“We hope we can reach a resolution soon,” Fisker spokesman Roger Ormisher said Monday.

Meanwhile, the company was forced to lay off workers at the former GM Boxwood Road plant.

“We are frustrated that Fisker and the DOE have been unable to come to terms on revisions to their loan agreement in time to avoid this,” said Brian Selander, a spokesman for Delaware Gov. Jack Markell.”