Veep Joe Biden

That grand news was confirmed on Tuesday when Vice President Joe Biden met with officials from the Irvine, California based company and with United Auto Workers (UAW) members to announce that Fisker was buying the plant for $18 million.

Oh, by the way, the $18 million comes out of a $529 million loan the Energy Department gave Fisker last month. More taxpayer money being used to prop up the car industry, I suppose.

Due Diligence

Fisker will close on the deal some four months out, once due diligence has been completed. Likely, they’ll be checking the property real close to make sure that no toxic waste pools are found out back, because the last thing green Fisker wants is to be saddled with a plant that is an EPA nightmare. Given its proximity to Washington, DC, you have to figure that someone influential from the EPA will be paying the former GM Boxwood plant a personal visit on their lunch hour.

Biden made sure that everyone knew that UAW Local 435 would be represented at the Fisker plant. Yes, it will be a union shop which might work because it will build Fisker’s newest vehicle there, dubbed NINA, for a base price of around $50,000. With some 2000 people expected to be employed to build 75-100,000 units annually, the plant could end up becoming a cash cow. Oh, by the way, at least $7500 in federal tax credits will be available for NINA buyers.

2012 Start

While Fisker waxed philosophical about the NINA, the car has yet to be designed, let alone engineered. Still, the little automaker who could or would expects that the plant will become fully operational again come 2012, which gives effected workers the next two years off, at least.

Though the Fisker news is all about NINA building this week, eyes will soon turn to Finland where the $89,000 Karma sedan will soon be built for consumers across Europe as well as the United States and Canada. Valmet Automotive, who currently builds two Porsche models – Boxster and Cayman – and the Think City EV beginning fall 2010, has agreed to supply the Karma to the world.

Fisker Automotive leapt onto the world stage in January 2008, when the plug-in hybrid car manufacturer decided to feature its Fisker Karma concept at the North American International Automotive Show (NAIAS) in Detroit. While I was there, I heard the snickers from journalists who wagged that the car was “vaporware” – which means that it was all looks with no substance – but I wasn’t ready to join the chorus. Indeed, just nineteen months later a prototype of the Fisker Karma was racing around a Monterey, CA track, demonstrating both its speed and athletic prowess.

Profitable In 2011

The first model to be launched will be an $87,900 four-door luxury sedan built for Karma by Valmet Automotive in Finland. Karma expects production to begin early next year with cars hitting showrooms by June 2010. The automaker claims 1400 pre-orders for this strikingly gorgeous sedan with production expected to hit 15,000 units annually. But it is a 5000 annual vehicle sales threshold Fisker is using when it claims that it will turn a profit in 2011.

Though the number of early orders is about one-third of what sales need to be in order to hit anticipated profit levels, don’t discount Fisker’s ability to meet its goal. After all, when you disprove naysayers by beating production expectations, your claims for profitability should be given honest scrutiny too. Besides, the company is putting the finishing touches on both its European and North American dealer networks, markets which are expected to evenly divide Fisker sales.

Fisker Covets Independence

Rumors that Fisker Automotive would partner with a major automotive producer have been circulating for months especially since Daimler AG acquired a ten percent stake in electric vehicle maker Tesla Motors over the summer. Logically, BMW might be a good fit for Karma, but right now the automaker is content to remain independent.

Following the launch of the Fisker Karma, other models are being planned including a convertible. Expect that once sales begin in the US and Europe, Fisker will turn its eyes to the hottest and fastest growing automotive market in the world – China.

Source: Reuters

The Fisker Karma, a premium green sedan, will make its driving debut on August 15th when a prototype vehicle takes two laps around Mazda Raceway Laguna Seca course in Monterey, California.

The Fisker Karma, a plug-in hybrid electric vehicle (PHEV), is scheduled to make its driving debut when a prototype of the sedan participates in the Rolex Monterey Historic Automobile Races on Saturday, August 15th.

The Fisker Karma prototype is scheduled to complete two laps on the legendary 11-turn Mazda Raceway Laguna Seca course at 11:10 a.m., starting and finishing just ahead of the pedestrian bridge at Turn 5, before returning to the Price Family Dealerships display area on the infield.

The Karma will also be on display at Concorso Italiano on Friday, August 14, alongside the Karma Sunset hardtop convertible concept. The Karma Sunset will again be on display at the Pebble Beach Concours d’Elegance Sunday, August 16.

Fisker Automotive Retail Network Charter Members

The Fisker Karma PHEV is expected to top 100 mpg with a beginning retail price of $87,900 when it goes on sale later this year. This past spring, Fisker announced that its first U.S. retailers has been assembled, a group of 32 dealers who will sell and service Fisker products.  Eight more retailers are also expected to be named in the near future, joining forty European retailers scattered across Europe who will have first shot at selling the Karma.

Fisker Automotive was established in 2007 and is headed up by Henrik Fisker, a Danish auto designer who created the Aston Martin DB9, Aston Martin V8 Vantage and BMW Z8. Fisker introduced the Karma concept at the 2008 NAIAS in Detroit and has already announced plans for additional models including the related Karma Sunset.

California-Finland Connection

Headquartered in Irvine, California, the manufacturer of premium green cars will build the Fisker Karma at a Finnish automotive plant owned by Valmet Automotive, an independent manufacturer of specialty automobiles including the Porsche Boxster and Porsche Cayman.

Source: Fisker Automotive

See Also — Production Ready Fisker Karma Makes Detroit Appearance

With a starting price of $87,900, 1,000 orders for the 100 mile-per-gallon luxury plug-in hybrid have been received since the prototype made its debut at the 2008 NAIAS. Karma deliveries are scheduled to begin in the fourth quarter of 2009 through the Fisker Automotive Retail network.

At the 2008 NAIAS, a number of automotive analysts dismissed Fisker Automotive’s introduction of its Karma concept, suggesting that the car would never be built.

Well, Fisker is about to prove its critics wrong as the 2010 Fisker Karma, a four door all-electric sedan, will be starting production in the last quarter of this year. Fisker has retained Finland’s Valmet Automotive to produce its entire build capacity, reported to be as much as 15,000 units annually.

To that end, Fisker made a return visit to Detroit for the 2009 NAIAS, taking the wraps off of a production ready car and oh what a beauty it is!

According to Fisker Automotive, the Karma can travel emission free for up to 50 miles on a full charge from any 110-, 220- or 240-volt electric outlet. A total range of up to 300 miles is estimated in Sport Mode, which utilizes the efficient Ecotec(R) gasoline engine to turn a generator that powers two electric motors on the rear differential. The Karma can achieve an annual average of more than 100 miles per gallon with a top speed of 125 mph and a 0-60 mph time of 5.8 seconds.

Pricing will begin at $87,900, with one thousand orders received for the 100 mile-per-gallon luxury plug-in hybrid to date. Karma deliveries are scheduled to begin in the fourth quarter of 2009 through the Fisker Automotive retail network.

Source: Fisker Automotive

Fisker Helps Michigan

Well, Fisker Automotive, the self-named “green car company” is in the process of reversing that trend, if you count a ripple of new jobs as being something to shout about. The car company, which will be releasing its all-electric Fisker Karma in late 2009, has opened an Engineering and Development Center in Pontiac, Michigan. The 34,000 square foot facility will be the home to some 200 designers and engineers who help to develop and produce the Karma.

“The available talent, supplier base and infrastructure in Michigan will help us reach our production goal,” said Fisker Automotive COO Bernhard Koehler. “While Fisker Automotive will continue to be headquartered in Irvine, California, the new facility will allow us the opportunity to collaborate with our Michigan supplier base and have everyone under one roof.”

Tesla Motors Loses Its Suit

The announcement by Fisker comes fresh on the heels of a recent arbitrator finding that the company did not steal confidential design information from rival Tesla Motors, Inc. Tesla had previously used Fisker’s design team to help the company develop a second model, a luxury all-electric sedan.

The Fisker Karma made its debut at the 2008 North American International Auto Show in Detroit this past January and in April Tesla filed its suit. Because both parties agreed to binding arbitration, the suit has officially been dismissed.

Made In Finland

Earlier this year, Fisker Automotive came to terms with Finland’s Valmet Automotive who agreed to build the Fisker Karma on its own assembly line. The company is currently taking “pre-orders” for consumers who put down a $1000 deposit on the car. Shipment for those who place their order right now is expected to begin in the second half of 2010.

Quick! What types of cars are built in Finland? If you are left scratching your head in wonder, you aren’t alone. Finland isn’t widely known for its global automotive manufacturing capabilities, though two Porsche models — the Boxter and the Cayman — are currently being built by Valmet Automotive on behalf of the premier German sportscar maker.

Now, Valmet Automotive will soon be adding Fisker to their manufacturing portfolio, agreeing to produce the all-electric sedan for the Irvine, California based company beginning in the fourth quarter of 2009. The Fisker Karma, unveiled at the North American International Auto Show in Detroit this past January, will be produce for the domestic (US) market first with deliveries to Europe commencing in 2010. Fisker expects that as many as 15,000 Karmas will roll off of the Finnish assembly line annually and the company has plans to seek a second plant, stateside, to provide additional production capacity.

“After an exhaustive global search, we are thrilled to have found the ideal manufacturing partner in Valmet Automotive,” said Fisker Automotive CEO, Henrik Fisker. “Valmet offers us the quality and speed necessary to meet our production goals and given that more than half of Fisker Automotive’s sales are expected to be outside of North America, Valmet represents an ideal international foothold. We do have a strategic plan to utilize an American manufacturing site for future models of the Fisker Karma.”

“It is forecasted that the market of environmentally-friendly electric vehicles will grow very fast and we are proud to be in the pole position in this growth,” says Ilpo Korhonen, President of Valmet Automotive. “Fisker Automotive leads the way by adapting the most innovative technologies to new, environmentally-friendly premium cars. The strategic partnership with Fisker Automotive will open a new window for Valmet Automotive. Our production process can be easily adapted to the production of electric and hybrid cars and new body designs. In line with our renewed strategy, engineering will have a strong role in the cooperation.”

“Our mission at Fisker Automotive is to develop beautiful, environmentally friendly cars that make environmental sense without compromise — be it quality-wise or cost-wise,” Fisker continued. “Valmet Automotive has the track-record, high quality technology and has the dedicated resources to take us there, and their high tech production line with eco-friendly automated paints agrees with our ideology.”

The Fisker Karma is a plug-in hybrid, a four door sports sedan with and electric range of 50 miles and a total range of more than 350 miles. The sedan boasts proprietary Q-DRIVE powertrain developed by Quantum Technologies, to give it a potential fuel economy of over 100 miles per gallon (MPG) on extended drives. With a top speed of 125mph and 0-60 acceleration in less than 6 seconds, the Fisker Karma is being billed as the world’s first true luxury plug-in hybrid sports car.

In addition to producing the two Porsche models, Valmet Automotive has also produced cars for Saab, Opel, Talbot, Renault, and Lada. Over the past 40 years, more than 1,000,000 cars have rolled off of Valmet’s assembly lines. The company is a division of Metso Corporation, headquartered in Helsinki.

(Source: Fisker Automotive, Inc.)

Gas prices are the topic of many conversations and the news across the US auto industry is glum. Everyone is down save for a few automakers (Honda) whose fleet is dominated by fuel efficient vehicles. The prospects for the second half of the year aren’t particularly bright, strongly suggesting that when 2008 has been put in the history books, it’ll be a watershed moment for car manufacturers.

Short of wringing our hands and wishing things weren’t so, the pressure GM, Ford, and Chrysler are facing may be a good thing for the long term. Additional smaller models are being planned; new technologies that increase fuel economy, power, while reducing emissions are now being used; and in the case of GM and Ford their fleet quality has risen sharply. Chrysler, on the other hand, being the smallest of the three is a concern — the company’s long term may very well be at risk.

Some of the tops stories on The Auto Writer this year include the following:

Tesla Alleges Fisker Design Thievery — Yes, the Tesla Roadster is finally out and fresh on its heels may be the Fisker Karma, another electric beauty. Tesla, however, is having some heartburn over the Fisker design, alleging all kinds of things about Fisker. The last bit of news I’ve heard about this is that Fisker wants to go to arbitration to settle Tesla’s suit. Hmmm….

Is The Dodge Magnum A Lemon — I actually wrote this article for a lawyer in 2005 or 2006 who then decided to stiff me when he changed the terms of our agreement. I kept the article, but decided to publish it in 2007 because, well, it is an interesting subject. Apparently, my readers think so too because it is also the most commented on article ever for this blog. Not just simple comments, mind you, but details about why their Magnums are problem plagued. To be fair, I like the Magnum’s looks and I drive a Neon myself, but if there are problems with a car, then sharing that information with others can be beneficial.

Cadillac Showcases One New Model & Two Concepts — You know that I don’t get out all that much when I point to the highlight of the year as being my trip to Detroit in mid-January. I visited the NAIAS as the guest of GM (a wonderful host, btw) and was able to see up close and personal several new or proposed models including the CTS coupe. Many of my January articles focused on the Detroit show giving me a clearer picture of where the industry is and where it is headed.

Which Brand Has The Best Resale Value? — Quite a few people were surprised to learn that Volkswagen finished on top, given its quality problems over the years. I was surprised too, but I attribute some of it doing so well, because their retail prices are competitive. Now, with all small cars actually increasing in value, buying a VW could be a good move. Maybe not.

Watch Group Alleges Widespread Toyota Labor Abuse — Toyota is the new #1, but the bigger they are the harder they fall! One labor rights group recently shined the light on Toyota’s labor practices and the news is pretty sad. True, many of the companies in question are suppliers, but Toyota has to be aware that some of these practices (i.e., low wages, long hours, miserable working conditions) are going on. If not, then Toyota has some serious ‘splaining to do. Come to think of it, they’ll have to explain what they plan to do no matter what.

The Rising Value of Your Fuel Efficient Car — Do you own a ’94 Tercel? How about a ’01 Neon or an ’04 Civic? The value of your car has likely increased in the face of $4 gasoline. Before you take your clunker to the junk yard, consider making the repairs necessary to keep your 35+ mpg car on the road — or sell it for a mint!

Lastly, thanks to everyone who has been reading this blog and contributing comments to add value to the discussion. I plan on keeping hard at it for the rest of the year, so please snag a feed to track what subjects I am covering.

The design allegedly stolen was for the Tesla White Star and the vehicle in question is the Fisker Karma. Tesla paid Fisker Coachbuild $800,000 in 2007 for its design service which the company said was “substandard” and they decided not to use it. The lawsuit against Fisker and related parties seeks punitive damages and an injunction barring the defendants from using Tesla trade secrets and proprietary information to build a competing model.

Tesla Getting Sued Too

Tesla is also the recipient of a lawsuit, this one filed on behalf of Magna Powertrain which alleges it was never paid for design and development work completed on a two-speed transmission installed in the initial Tesla Roadster production run. The transmission was never used and Magna is suing Tesla for $5.6 million. Technical issues forced Tesla to scrap the transmission, one of many hold ups for the Roadster which is just now being produced.

Fisker Automotive Production Plans

While many consider the Fisker Karma to be a long shot (pipe dream, perhaps), the company says that their plug-in electric car will hold four people, travel 50 miles on a single battery charge, and be able to extend that range to 500 miles thanks to a one-gallon fuel engine that generates enough electricity to power the sedan.

The Fisker Karma is expected to retail for about $80,000 and the company says that its top speed is 125 mph with the ability to go from 0 to 60 in six seconds. The company is in discussions with American and German automotive manufacturers to use one of their plants to build the car.

(Source: Motor Trend & Wire Services)