Fisker to delay Karma production because of A123 battery shortage
Fisker Automotive will postpone production of its Karma extended-range plug-in vehicle until the future of bankrupt battery maker A123 Systems is resolved, Bloomberg reports, citing an interview with the automaker's CEO.
During an interview at this week's Los Angeles Auto Show, Tony Posawatz admitted that A123's Michigan factory has stopped making lithium-ion batteries earmarked for the company's sleek Karma sedan. As a result, any available batteries are being saved as potential replacements for examples already out on the road, Bloomberg reports.
As it is, Fisker has held off the start of production for its less-expensive Atlantic model range for various reasons, chief among them that much of the $529 million loan that Fisker was set to receive from the US Energy Department has been frozen. The most recent word is that the Atlantic may see the light of day in 2014.
A123, which filed for bankruptcy in October, will be subject to acquisition bids starting next month. The lead acquisition candidates are understood to be China-based Wanxiang Group Corp. and US-based Johnson Controls.