Editor/Reporter - CheersandGears.com
February 10, 2012
Earlier this week, Fisker announced they had temporarily halted work on Nina family sedan at the Fisker Automotive plant in Wilmington, Del. The temporary halt is due to Fisker and the federal government hashing out new terms of the company’s $529 million Department of Energy loan. The halt has caused Fisker to layoff 26 people at its Delaware plant and a number of contract engineers at Fisker's Anaheim, Calif., headquarters.
So why is the federal government and Fisker renegotiating details about the loan? Well, the Department of Energy’s load had certain deadlines, or milestones for Fisker to meet with Karma plug-in hybrid. Fisker failed to meet those deadlines and the department required modification of the terms of the loan to incorporate new deadlines for the company's second car, the Nina.
"DOE loan-modification negotiations are fairly standard procedure. We have to deliver on certain milestones, and we didn't hit all our targets with the Karma. This is a relatively ordinary series of events," said Fisker spokesman Roger Ormisher.
So far, Fisker has used Fisker has used $193 million of the $529 million government loan, mostly for the Karma. The remaining amount will go towards the new Nina.