Fisker unveils Atlantic but may not build cars in Del.

[longnecker]

NEW YORK -- Fisker Automotive may not build its next line of hybrid cars at the former General Motors plant near Newport as planned, the company's CEO revealed Tuesday at the unveiling of the midsize sedan that was expected to rejuvenate Delaware's auto industry.
Problems with securing the next installment of a Department of Energy loan have forced the company to seek other possible manufacturing sites for the Atlantic, a sporty four-door that is meant to power mass-market sales for the California company.
Interest in funding and building the car has been on the rise in Europe, company CEO Tom LaSorda told auto industry reporters at the Atlantic's unveiling.
"[Delaware] is still our primary choice, but we're looking at other options," LaSorda said, adding that the Delaware site's status as a "greenfield" helps its case. If the Delaware plant is not chosen as the Atlantic's manufacturing base, it still would be possible that other models may eventually be built there.
The governor's office said it would protect Delaware's interests while still working to bring Fisker to the state.
"When Fisker and the Department of Energy reached an impasse over the distribution of the remaining loan, Fisker made clear they did not have the capital necessary to build out the Boxwood Road plant, said Brian Selander, spokesman for Gov, Jack Markell.
"If it becomes clear that Fisker's need for additional capital leads them to build elsewhere, we will vigorously enforce our rights to recovery under the state's loan agreement with the company."
There had been signs of possible trouble with Fisker building in Delaware.
When LaSorda was announced as CEO in February, he said production in Delaware relied on securing "alternative sources of financing."
But some in Delaware remain confident that Fisker can become a reality.
"No one is better prepared to do this than Delaware today. Rather than start all over again, let's move forward. ... They say this is still their primary location, so let's do it. Let's sit down and work it out and move forward," said Alan Levin, director of the Delaware Economic Development Office, said Tuesday night. Read more
http://www.delawareonline.com/articl...nclick_check=1

[Brainstorm]

Duh. Like we didn't see that coming.

Simply stated, the clueless and ideologically skewed dolts given access to taxpayer money in DE are being picked clean by scammers who know weak prey when they see it. When I've read reports about the terms of some of these deals (like the faux new energy boondoggles) it make me wanna cry. A junior associate in any half-competent equity investment team would laugh at the deals that DE makes.

[longnecker]

Duh. Like we didn't see that coming.

Simply stated, the clueless and ideologically skewed dolts given access to taxpayer money in DE are being picked clean by scammers who know weak prey when they see it. When I've read reports about the terms of some of these deals (like the faux new energy boondoggles) it make me wanna cry. A junior associate in any half-competent equity investment team would laugh at the deals that DE makes.

Aw BS. do you think they would laugh if was THEIR tax money?

[Brainstorm]

[/COLOR]Aw BS. do you think they would laugh if was THEIR tax money?

Good point. I stand corrected --though I did at least say that it made ME cry!

[Chiefbuck]

Good point. I stand corrected --though I did at least say that it made ME cry!

This is an example of where playing "follow the leader" goes bad. Investing taxpayers money into an unproven agenda seems to me to be a tad too risky. Sure, the green alternate energy agenda sounds great but somewhere along the line reality should take priority. Many if not most of the solar panel and windmill manufacturing jobs are overseas and finished projects here are not exactly overflowing with job openings. Hybrid vehicles do make sense because the batteries serve as electric storage flywheels. Domestic hot water solar systems are efficient because no energy conversion is required. But only using battery power for propulsion simply relocates the pollution to the source of the power. Automobile start up companies require some sort of breakthrough or advantage to be successful. Fisker broke no new ground. Large vehicle manufacturing companies have done loads of research and have things already in place to actually begin assembly. Still they have built in problems with labor, pension and health care benefit costs to contend with. Then there is also competition from other countries that have far lower overhead and labor costs.
One big problem in Delaware is that we have one party government, that sounds OK but in reality one part of the checks and balances system is missing because the other party has little power. The third part of the system is the press and here that is the Gannett newspaper which many believe is rather biased and focused only on the liberal progressive agenda. So conservatives have only two radio stations, the internet, cable TV and fortunately the Caesar Rodney institute to get the conservative opinion out to the public. Many citizens for various reasons do not pay much attention to their government. They will continue to ignore the problems until something drastic happens. I believe that although Delaware has problems the national picture is looking rather grim and may become far worse unless corrective action is taken soon. People should consider taking some time to get involved at the local level, groups like The Rail Splitters is a good example.

[Brainstorm]

This is an example of where playing "follow the leader" goes bad. Investing taxpayers money into an unproven agenda seems to me to be a tad too risky. Sure, the green alternate energy agenda sounds great but somewhere along the line reality should take priority. Many if not most of the solar panel and windmill manufacturing jobs are overseas and finished projects here are not exactly overflowing with job openings. Hybrid vehicles do make sense because the batteries serve as electric storage flywheels. Domestic hot water solar systems are efficient because no energy conversion is required. But only using battery power for propulsion simply relocates the pollution to the source of the power. Automobile start up companies require some sort of breakthrough or advantage to be successful. Fisker broke no new ground. Large vehicle manufacturing companies have done loads of research and have things already in place to actually begin assembly. Still they have built in problems with labor, pension and health care benefit costs to contend with. Then there is also competition from other countries that have far lower overhead and labor costs.
One big problem in Delaware is that we have one party government, that sounds OK but in reality one part of the checks and balances system is missing because the other party has little power. The third part of the system is the press and here that is the Gannett newspaper which many believe is rather biased and focused only on the liberal progressive agenda. So conservatives have only two radio stations, the internet, cable TV and fortunately the Caesar Rodney institute to get the conservative opinion out to the public. Many citizens for various reasons do not pay much attention to their government. They will continue to ignore the problems until something drastic happens. I believe that although Delaware has problems the national picture is looking rather grim and may become far worse unless corrective action is taken soon. People should consider taking some time to get involved at the local level, groups like The Rail Splitters is a good example.

Really dumb (and expensive!) things happen when the bureaucrats are desperate to look like they are "doing something" even when they have no ability to affect the conditions underlying a problem and have the access to our money to advance their agendas which thrive in their crony-filled la-la land where facts and science and economics are simply dismissed as issues. As longnecker stressed, it's easy to jump into fantasy projects when it's someone else's assets being tapped.

I would love to find sustainable alternate energy solutions but every one I looked into made no sense. The payback on solar for home energy (even based on unrealistic self-serving industry claims) is not attractive, and there are a myriad of other issues that make it a very chancy option. For example, the universe of truly qualified installers is about nil and the associated problems (such as roof problems for which those installers disavow responsibility) have made that "improvement" a nightmare for many. I also wonder who would find electric cars feasible given their range restrictions (and we all know from even tiny consumer electronics that battery issues are a critical limiting factor which needs to be solved BEFORE massive capital spending) and re-fueling problems and the costs of the hybrids are very high (especially for very limited capacity) so it seems to make sense only for those logging extremely high mileage and a willingness to buy a vehicle much more expensive than many other reasonable options.

Obviously, there is a tiny market for those willing to make uneconomic decisions for personal political reasons (and more power to 'em as long as they're using THEIR money) but the fleecing of the average taxpayer so the pols can play in issues WAY above their competence level to bask in the craven attention of the scammers and ideologues is a disgrace.

[Tralee]

Its coming increasingly clear, to me, that the government needs to stay out of the Green Energy area, so far how many billions of dollars have been spend on companies that went bankrupt? I really think, if an idea is good, the people will invest in it and it will survive on it's merits rather than the High Hopes of some government agency. Fisker has had problems from the get go, it's really not looking all that promising and I definitely would not invest in that company, at this time. The problem with totally electric cars is the same thing that has been wrong with all electric cars ever since the first one was built, over a hundred years ago. Range and battery life just aren't there. Until they can manufacture a battery that will last for days, rather than hours, there is just no demand for this type of car except for some nebulous bragging rights. Besides, be honest, what is generating all the electricity needed to charge up those batteries? Right, coal. DE has already given this company a very large loan, what happens if they don't come here, do we get that money back?

[max1]

DE has already given this company a very large loan, what happens if they don't come here, do we get that money back?

nope, just some "change"

[Grin]

I picked this off of Philly.com Although LN's post had the same Selander quote. http://www.philly.com/philly/busines...mpid=138890144



"From Delaware Gov. Jack Markell: "When Fisker and the Department of Energy reached an impasse over the distribution of the remaining loan, Fisker made clear they did not have the capital necessary to build out the Boxwood Road plant" (since a big US loan was to finance the Delaware plant).

He added: "Fisker said again during the unveiling that their first choice remains to build their next car in Delaware. That remains our first choice as well. If it becomes clear that Fisker’s need for additional capital leads them to build elsewhere, we will vigorously enforce our rights to recovery under the state’s loan agreement."
The state loans become grants (permanent) if the plant ends up creating the promised 2,495 jobs, says Markell spokesman Brian Selander."


It appears that there is a plan to recover the money if Fisker builds their cars elsewhere.

[longnecker]

Delaware has a lot at stake when it comes to Fisker Automotive -- hundreds of jobs depend on the California automaker building its next model at the former General Motors plant near Newport.

Fisker has a lot riding on the deal as well -- $214.5 million, to be exact.
That's how much the Anaheim startup must repay to Delaware and the federal government if it opts to produce its second line of cars -- the Atlantic sedan -- elsewhere and doesn't create those jobs in Delaware by 2015.
That possibility was opened up recently by Fisker CEO Tom LaSorda's surprise announcement that the company was considering making the Atlantic sedan elsewhere, because of difficulties drawing on the second half of a $493 millionfederal loan.
The Delaware plant remains Fisker's preferred production location for the Atlantic, but a final decision will be made by this summer after a full review of the company's business options, which might hinge on more private sector financing requiring a different production site, company officials have said.
A different production site would trigger "clawback" provisions in the various loans, grants and tax breaks Fisker was given as an inducement to build in Delaware. All but one of those financial incentive packages require Fisker to create the jobs or pay the money back, giving the fledgling company yet another fundraising challenge.
Aside from losing the cash, Fisker also would be left with an idle 142-acre auto plant that it paid $18 million for, then spent millions -- including some of its of its own funds -- refurbishing.
The automaker's biggest potential hit would be the need to repay in full the $193 million it already has received from the federal loan through the U.S. Department of Energy. If Fisker decides to relocate production of its Atlantic project outside Delaware, the DOE could demand immediate repayment of the full $193 million already disbursed, according to terms of the loan agreement. Read more
http://www.delawareonline.com/articl...nclick_check=1

[M.Opaliski]

Some other comment that I made at an earlier date probably applies to this news piece too.

*Oh, and Fisker announced more layoffs today.

[Grin]

These numbers tell the tale of US mfg.
http://www.mybudget360.com/wp-conten...uring-jobs.png
Since 1980 the decline is great

[Brainstorm]

I see that Fisker has laid off 12 more in DE... one worker says the place is a ghost town.

http://www.delawareonline.com/

[M.Opaliski]

*If you pay taxes in Delaware, raise your hand too.

[EpicWin]

Fisker plant 'absolutely empty'
Carmaker lays off 12 from Boxwood Road factory, amplifying questions about future


Fisker Automotive, the startup hybrid-electric carmaker backed by the state and federal governments, has laid off another dozen workers at its Newport-area factory.The layoffs, which occurred quietly Friday, come as the company continues closed-door negotiations with the U.S. Energy Department for a loan that could determine whether Fisker ever builds a car in Delaware. Meanwhile, the state continues to pay the utility bills for the factory, holding out hope that the automaker will still put scores of Delawareans back to work.
Today, Fisker employs only a small maintenance team at the site "protecting plant assets and maintaining the facility," said Fisker spokesman Russell Datz.
"We have always had a flexible business model that allows us to scale up and down as work demands. As we ramp up the project again, we will add a new headcount," Datz said. "We've accomplished a lot at the plant, using more than 40 local contract firms to recycle old material and equipment. The plant is now ready for the next phase of installing new production equipment."
Among those laid off last week was Jeffrey Garland, a deep-rooted Delawarean who was spearheading community affairs and business development efforts across the state for Fisker.
Garland, who was an executive at MBNA and had been an aide for Sen. Bill Roth, R-Del., said the Fisker plant, shut down by General Motors in 2009, is "absolutely empty."
Fisker has hauled used equipment away from the site but has not begun to install equipment needed to produce its second electric-hybrid model -- the $47,000 Atlantic hybrid sedan.
Garland said the layoffs included engineers working at the facility and maintenance technicians.
"All of us who were there hoped we were still adding value," said Garland, who is hopeful Fisker will succeed. "I think what happened was the budget numbers are so tight right now and they're working so hard to preserve as much cash as they can that something had to give.
"We're not making a car in Wilmington right now, so given that situation, it was an obvious place to make a cut," he added.
Fisker entered Delaware in late 2009 as the potential savior of the state's auto industry -- which had been shattered by the exit of General Motors and Chrysler's decision to shut down its Newark plant in late 2008. Politicians joined autoworkers to celebrate Fisker's arrival. But Fisker's road to production here has been fitful, and it is unclear whether the company will ever live up to obligations to re-employ Delaware's auto workforce.Production of Fisker's Atlantic was originally scheduled to begin later this year, but those plans were put on hold earlier this year when the U.S. Department of Energy suspended the automaker's $529 million federal loan after the company failed to reach milestones related to its first car, the $100,000 electric-hybrid Karma sedan.
Fisker, which has already laid off 26 workers at the site, was also awarded $21.5 million in grants and loans from the state. The company has collected more than $18 million of that funding to clean out the plant and keep the electric and gas bills paid. Delaware continues to make those payments despite Fisker's idling of the factory.
"The initial agreement with Fisker, including the clawbacks if hiring goals aren't met, remains in place," said Brian Selander, a spokesman for Gov. Jack Markell. "Fisker hiring hundreds and producing cars remains the preferred outcome for the Boxwood Road factory."
Yet Fisker's commitment to Delaware seems shaky. Chief executive Tom LaSorda recently announced that Fisker may not build cars in Delaware if it cannot secure additional financing from the Energy Department. The company's negotiations with the agency continue behind closed doors.
If Fisker decides to leave Delaware, the state would attempt to collect the money given to the company, officials have said. The U.S. Department of Energy could also demand immediate repayment of $193 million already drawn down by the company, mostly for engineering work on the Karma.
Garland, who was working with companies to design uniforms for Fisker's Delaware workforce and plan an on-site day care facility, called Fisker "a good company with a good product."
"They deserve the opportunity to succeed," he said.
Brian DiSabatino, president of the Wilmington construction firm EDiS, the general contractor hired to oversee the renovation of the Boxwood Road plant, said it's too early to give up on Fisker.
"We've learned over time never to read too much into this kind of stuff," Di- Sabatino said. "This just might be part of their plan to hit the pause button, reorganize and come back"

Stick it to the taxpayer as always. They can take it.

[Crabby]

I hope they can legally be forced to return our money or a least get something back. Bummer.

[max1]

Crabby> We the delaware tax payer are third in line to get a refund.....it aint gonna happen. Markell should be fired.