- Sep 22, 2009
BREAKING: Fisker gets $528.7 million loan from U.S. DOE for Karma, Project Nina
Fisker Karma - Click above for high-res image gallery
Fisker's goal of becoming profitable by 2011 received a shot in the arm today thanks to the U.S. Energy Department's announcement that the upstart automaker will receive a $528.7 million conditional loan. The DOE says the loan, "will create or save about 5,000 jobs for domestic parts suppliers." Highlights of the DOE's announcement include confirmation that the money will go towards "two lines of plug-in hybrids" ($39,000 PHEV, here we come?) and that at least some of those jobs will be "to manufacture a plug-in hybrid in the U.S." Fisker will perform final assembly of its first car, the high-cost Karma, in Finland with partner Valmet.
When we spoke with company head Henrik Fisker about a low-cost model back in January, he told us once DOE funding came through, it wouldn't take long to get the lower-cost plug-in hybrid on the road. The DOE loan specifies that $169.3 million is to be used for engineering integration costs, working primarily with U.S. suppliers to get the Fisker Karma finished, with the remaining funding to be used on Fisker's Project Nina. Project Nina? There's a name we haven't heard before, but the DOE says it will involve "the manufacture of a plug-in hybrid in the U.S." Fisker says the name was chosen as a reference to Christopher Columbus, and "is symbolic of the automobile industry's transition from old world to new."
Earlier this year, the DOE gave conditional loan commitments to Ford ($5.9 billion), Nissan ($1.6 billion) and Tesla Motors ($465 million). The money comes from the Advanced Technology Vehicles Manufacturing (ATVM) Loan program. All the details are available in the press releases below the fold.
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[Source: Fisker, DOE]
US Energy Secretary Chu Announces $528 Million Loan for Advanced Vehicle Technology for Fisker Automotive
Investment will save or create at least 5,000 jobs
Washington, DC – Energy Secretary Steven Chu today announced a $528.7 million conditional loan for Fisker Automotive for the development of two lines of plug-in hybrids that will save hundreds of millions gallons of gasoline and offset millions of tons of greenhouse gas emissions by 2016. The project will result in approximately 5,000 jobs created or saved for domestic parts suppliers and thousands more to manufacture a plug-in hybrid in the U.S.
"This investment will create thousands of new American jobs and is another critical step in making sure we are positioned to compete for the clean energy jobs of the future," said Secretary Chu. "Plug-in hybrid electric vehicles could revolutionize personal transportation and cut our dependence on foreign oil, not to mention give us cleaner air and less carbon pollution."
This is the fourth conditional loan commitment the Department of Energy has entered into under the Advanced Technology Vehicles Manufacturing (ATVM) Loan program. The Department plans to make additional loans under this program over the coming months to large and small auto manufacturers and parts suppliers up and down the production supply chain.
In the first stage of the program, Fisker Automotive will use a $169.3 million ATVM loan for engineering integration costs as it works with primarily U.S. suppliers to complete the company's first vehicle, the Fisker Karma. Engineers will also design tools and equipment and develop manufacturing processes. This work will be conducted at Fisker's Pontiac, Michigan office with support from its headquarters in Irvine, California. While the final assembly of the Karma will be done overseas, more than 65 percent (based on cost) of the parts required for Karma will come from U.S. suppliers. The four-door Karma is scheduled to appear in showrooms in summer 2010.
The second stage includes a $359.36 million ATVM loan for Fisker's Project Nina, involving the manufacture of a plug-in hybrid in the U.S. Fisker estimates that up to 75,000-100,000 of these highly efficient vehicles will roll off assembly lines in the U.S. every year beginning in late 2012. The combined projects are anticipated to create thousands of jobs in the U.S. and provide substantial support for domestic parts suppliers saving or creating approximately 5,000 jobs.
Fisker automobiles are driven by electric motors powered by a lithium-ion battery, or, when that is depleted, a generator driven by an efficient gasoline engine. The electric-only range will be more than most people drive in a day. The battery can be charged at home overnight. Using gas and electric power, Fisker plug-in hybrids will have a cruising range of about 300 miles. The projected annual sales of these vehicles would contribute significantly to the Administration's goal of having one million plug-in hybrids on the road by 2015.
FISKER AUTOMOTIVE AND US DEPARTMENT OF ENERGY AGREE TO TERMS FOR $528.7M LOAN
- Funds awarded to develop affordable plug-in hybrids made in USA
- At least 5,000 direct and indirect US jobs to be created or saved
- An estimated 821 million gallons of gasoline will be saved and 8 million tons of CO2 offset from sales of Fisker plug-in hybrids through 2016
IRVINE, CA – Sept. 22, 2009: Fisker Automotive and the US Department of Energy have agreed to terms for a loan of more than half a billion dollars to create affordable, fuel-efficient plug-in hybrid electric cars.
A majority of the low-interest funds will go toward Project NINA, which will see the design, engineering and assembly of Fisker Automotive(www.fiskerautomotive.com)'s next-generation plug-in hybrids, starting at about $39,900 after tax credits. The remainder will help finalize development of the Fisker Karma, the technology leading plug-in hybrid that will enable the company to develop such lower cost models.
Fisker Automotive expects to create or save at least 5,000 US jobs among auto suppliers and thousands more to manufacture a plug-in hybrid in the U.S.
Project NINA – inspired by the ship belonging to explorer Christopher Columbus -- is symbolic of the automobile industry's transition from old world to new.
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.
"This conditional loan represents a significant step in America's future," said Henrik Fisker, CEO. "With it Fisker Automotive can rapidly develop affordable clean cars that satisfy our passion for driving and help restore the US as an auto industry leader."
All Fisker automobiles prove eco-friendly vehicles can be stylish, functional and exciting.
They combine the low energy-cost and tailpipe-emission free benefits of an all-electric car with the unlimited range of a gasoline powered car.
The funds are part of the US Department of Energy's $25-billion Advanced Technologies Vehicle Manufacturing Loan Program, created by Congress in November 2008 to help promote the development of energy-efficient, advanced-technology vehicles.
Fisker Automotive has already created hundreds of jobs by partnering with Tier 1 US automotive suppliers to develop the Karma. The company has also recruited a network of 45 premium retailers to market and service its vehicles. With Project NINA, that network is expected to grow to more than 100 US retailers, in addition to those in Europe, Asia and the Middle East.
The Fisker Karma's real-world, annual average fuel economy can exceed 100mpg, significantly more than that of today's hybrids. Its exclusive Q-DRIVE® powertrain is expected to deliver an emission-free 50 miles per full charge of its Lithium-ion battery, and a total extended range of more than 300 miles through the use of its gasoline powered engine/generator. If driven fewer than 50 miles per day and fully charged overnight it is possible the Karma can use as little as one tank of gas per year. More than 1,500 of the plug-in hybrids have already been ordered.
It is estimated some 821 million gallons of gasoline will be saved and 8 million tons of CO2 offset from sales of Fisker plug-in hybrids through 2016, based on SAE J2841 Electrical Usage Statistics.