The shutting down signified the end of an industry that had brought prosperity to thousands of people for six decades. U.S. Vice President Joe Biden, a senator from Delaware plans to visit the closed GM plant on Tuesday where Henrik Fisker, chief executive and founder of Fisker, is scheduled to accompany him.
"We'll be making an official announcement on Tuesday, and a senior White House official may be involved," Fisker spokesman Russell Datz said Friday, declining to provide any other details.
But a state government official, who didn’t want to be identified because there's been no announcement, confirmed and described the deal as "99 percent" complete.
Fisker’s federal loan
Last month, the U.S. Department of Energy said Fisker would be borrowing $528 million to help it develop two hybrid vehicle models. At that time, Fisker said it would use the bulk of the money, to develop a more affordable second-generation car, in all probability the model scheduled for the Delaware factory.
The loan given to Fisker is part of a $25-billion federal program planned to enhance the economy and kindle development of vehicles. It recently said on its website that it planned to use $359.3 million of the federal loan to support its Project Nina and would manufacture 75,000 to 100,000 plug-in hybrids beginning from 2012. The car is expected to sell for $39,900, after federal tax credits.
The balance of the federal loan would be allocated to work on the Karma model whose functions are mainly handled in Irvine and Pontiac. Karma has a base price of $87,900 and is being built in Finland by Valmet Automotive.
Association with big names
The Delaware plant is GM's 3.2 million-square foot plant idled since July. The plant, built in 1947, once assembled GM’s Saturn Sky and Pontiac Solstice. The company plans to build a $48,000 hybrid vehicle marketed toward families. The plant would employ at least 1,500 workers and produce up to 100,000 cars annually.
Fisker which was incorporated in 2007 has the backing of well-known venture capitalists including Kleiner Perkins Caufield & Byers.
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