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GM And Fisker Reorganize Delaware Plant to Build Plug In Vehicles

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On: Tue, Jun 15, 2010 at 1:09PM | By: Sherry Christiansen


GM And Fisker Reorganize Delaware Plant to Build Plug In Vehicles

Fisker, the automaker that designed the notorious Karma, is now working on plans for a new lower priced vehicle called the “Nina.”  The new automobile, second in the line-up for Fisker, will be produced at a new (well, new to Fisker anyhow), auto plant in Wilmington, Delaware. It is the plant that Fisker offered to purchase from General Motors, now Motors Liquidation Co., the bankruptcy estate company spun off from General Motors.

Up until now, all of the press regarding Fisker was about the Karma, a luxury electric plug-in vehicle, but in recent news, Fisker reports that they have been granted a DOE loan to help finance plans to build a smaller ,more affordable plug-in ($50,000) in the United States.

Motors Liquidation Co., officially put into motion the sale of GM's old Wilmington, DE, plant with an asking price of $20 million. GM offered to negotiate for the sale of the plant with Toyota and Volkswagen, but Fisker "submitted the highest, best, and only formal offer received for the property during the extensive marketing period," according to Motors Liquidation in the court documents. Fisker has bid only $18 million, but plans to spend over $175 million to get the plant in working order

According to a recent article in the Wall Street Journal, there are some environmental pollutants that need cleaning up at the plant, but GM has agreed to take responsibility once the cost is established by creating a trust to deal the expense of clean up.

Fisker will use part of the $528.7 million DOE loan to get the plant in tip-top shape for plans to build up to 100,000 Nina models in 2014.

Analysts are a bit surprised that Henrik Fisker would be jumping "into the frying pan," so to speak, as it is a little early to invest more in the Wilmington production plant and start designing a new model when the launch of the Karma is in its initial stages..

The plans for building the new model are being referred to as “Project Nina.” No one knows for sure if the Fisker’s new model will actually be named Nina or if it’s just being used as a project name. Fisker does report that the goal is to create 5,000 jobs and produce up to 100,000 vehicles by 2014 with half of the cars being exported. If all goes as planned Fisker would be named the largest domestic car export company in the U.S.


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