Fisker Automotive has received a conditional loan of $527 million to build affordable, fuel-efficient plug-in hybrid cars. Pictured here is the company's first car, the Fisker Karma.
(PRNewsFoto/Fisker Automotive)Photos (1 of 1)
Fisker Automotive lands $529 million White House loan
By Matthew Shaer | 09.23.09
Fisker Automotive, a private company based in Irvine, Calif., has received a $529 million loan from a Department of Energy program designed to fund the development of alternative vehicles.
Energy Secretary Steven Chu told the Los Angeles Times that the low-interest loan, which was announced on Tuesday, “is another critical step in making sure we are positioned to compete for the clean-energy jobs of the future.”
In a statement, Fisker said it would use the bulk of the money to fund the design, engineering and assembly of a next-generation plug-in hybrid cars. The cars will retail at $39,900, after tax credits, according to a Fisker statement:
By 2012 Fisker Automotive is expected to launch a family oriented, user friendly plug-in hybrid featuring cutting edge technology, radical styling and world-class quality. Global sales are predicted to exceed 100,000 units annually. A significant percentage will be exported, helping to balance the US trade deficit.
The rest of the loan will reportedly go towards a line of more affordable vehicles.
Earlier in the year, the Department of Energy issued loans to Ford, Nissan, and Tesla – part of a green energy push on the part of the Democratic administration.
In August, Obama unveiled the details of a separate $2.4 billion grant and loan program aimed at boosting production of electric cars and next-generation battery technology. The funding for the program comes from the 2008 $787-billion economic stimulus bill.
The program represents “the largest investment in this kind of technology in American history,” Obama said at the time. “For too long, we’ve failed to invest in this innovative work, even as countries like China and Japan were racing ahead. That’s why this announcement is so important.”
Editor’s note: The original article incorrectly identified the name of the car that Fisker will manufacture with the government loan.
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3. tlc | 09.24.09
Wonder if the management is past or future contributors to political campaigns? If it is a great product, investors should be willing to invest….no gov. loan needed.
4. nfp | 09.24.09
When did DE become a Financial/Loan institute? And its Secretary become a banker the last time?
5. richard potter | 09.24.09
The government should be involved in business incubator activities for new technology and energy. However, to directly finance business and industry is not the right coarse for our freedoms or our democratic institutions.
6. Mike lund | 09.28.09
Fisker’s top investors include Kleiner Perkins Caufield & Byers, a veteran Silicon Valley venture-capital firm of which Gore is a partner. Employees of KPCB have donated more than $2.2 million to political campaigns, mostly for Democrats, including President Barack Obama and Hillary Clinton, according to the Center for Responsive Politics, a nonpartisan group that tracks campaign contributions.
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1. David Woodward | 09.23.09
The author, Matthew Shaer, really needs to check his facts. The Karma is the current luxury hybrid that costs around $89,000 that will be out next year. The bulk of the loan is for help in getting their cheaper car currently named in the media as “Project Nina”. The Karma is projected at around 15,000 units per year, while “Project Nina” is projected for the 100,000 annual unit production.