Fisker to tool up old GM plant for US production

After sending production of its upcoming Karma sedan offshore, Californian PHEV startup Fisker will take over a recently closed General Motors plant to manufacture its second offering at home. In last minute talks with GM and its restructure administrators, Fisker closed the deal to acquire the recently closed Saturn and Pontiac plant in Wilmington, Delaware.

In a release issued today, Fisker made it official that the specialist builder would acquire the Wilmington plant for US$18 million from Motors Liquidation Co. (MLC), the last vestige of 'Old GM' being put out to pasture.

Wilmington formerly built the Pontiac Solstice and Saturn Sky sports cars, both based on the expensive-to-produce GM Kappa platform, but Fisker's plans -- at a further cost of US$175 million -- is to refurbish the factory to build a plug-in hybrid family sedan expected to sell for US$39,900 after federal government tax credits.

"This is a major step toward establishing America as a leader of advanced vehicle technology," said Henrik Fisker, CEO (pictured). "Wilmington is perfect for high quality, low-volume production and will soon be the proud builder of world-class, fuel-efficient Fisker plug-in hybrids."

The news comes only weeks after the company's September announcement that it has secured a US$528 million loan from the Department of Energy to get its first product, the Karma four-door, and its second offering, a midranger codenamed Project NINA, to market. On top of substantial backing from the Silicon Valley venture capital community, Fisker is cashed up at a good time.

Rather than building the Karma in the fraught environment of the US industry, the company had to look offshore. The hybrid sedan is being built in Finland, although Fisker has announced intentions to eventually bring production to the US.

Now, however, it looks well positioned to reap the benefits of GM's misfortunes.

The company plans to tool the Delaware plant up for its second offering, a midrange PHEV currently going by the name of Project NINA. Fisker is looking at bringing it to market in 2012, at an estimated US$48,000 -- not much more than half the US$90,000 asking price for the Karma.

Fisker has clearly been doing its mass-market planning. Suggestions are that the 300,000 square metre plant, shut down in July after 60 years in operation, will be good for up to 100,000 units a year, for which Mr Fisker says it would need 1500 or more people.

-- with staff

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