Fisker could use old GM plant for PHEV production

Fisker Automotive's arrival could herald a new era of automaking in this state, one in which electricity takes the place of gasoline and nimble start-ups replace established giants. Or the plug-in hybrid electric automaker based in Irvine, Calif., could join the junkyard of failed auto ventures such as DeLorean and Tucker.

Fisker is expected to announce Tuesday that it has picked the former General Motors near here to build a family-oriented plug-in hybrid sedan, a project backed by a $359 million federal loan. Vice President Biden and Gov. Jack Markell will be on hand for the event at the 62-year-old factory. The event likely will focus on the "green jobs" that would be created if Fisker's venture goes according to plan. But automotive experts said Fisker faces a difficult road to gain customers and profits. And auto giants including GM, Ford, Toyota and Volkswagen also have plug-in hybrids in the works.

"You'd have to say it's a very high-risk proposition," said Jim Hossack of industry consultants AutoPacific. "On the other hand, it has tremendous backing from various levels of government. That improves their odds." Fisker was awarded a $528 million loan from the Department of Energy in September, part of a $25 billion program to fund development of alternative vehicle technologies. About $169 million was designated for engineering for the Karma, Fisker's first car, a luxury sedan with a base price of $87,900 that will be built in Finland. The Karma is due on the market next summer.

The remainder of the loan is going to Project Nina, the development of a family car, expected to sell for about $40,000 after a $7,500 federal tax credit, that will be built at the old GM plant beginning in 2012. Production of the Karma may also shift here when the plant reopens.

Fisker's plug-in hybrid technology features a rechargeable lithium-ion battery that powers an electric motor. When the plug-in charge is used up, a gasoline engine powers a generator. Fisker's management team includes Danish-born CEO Henrik Fisker, a designer with 20 years in the business, including stints with BMW and Ford. German native Bernhard Koehler is COO. Fisker Automotive is a joint venture between Fisker Coachbuild, a company launched by the two executives in 2005, and Quantum Technologies, a publicly traded supplier that developed Fisker's Q-Drive technology.

Source : USA Today, by Andrew Eder, October 27th, 2009