On the drawing board just a few years ago, Fisker will join the likes of GM, Ford Motor Co, Toyota Motor Corp and other brand-name car companies in operating a full-scale production facility in the United States.
Fisker's emergence as the planned owner of the Boxwood Road plant in Wilmington, which made iconic brands for GM for more than 60 years before closing during the automaker's bankruptcy this year, illustrates the Obama administration's drive to foster a 'Green' manufacturing economy and boost new ventures.
'We understood a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation,' said Vice President Joe Biden, who joined Fisker's chief executive at the plant to make the announcement.
Biden represented Delaware in the U.S. Senate before becoming vice president. The Wilmington facility is the closet car manufacturing plant to Washington.
Fisker, which has signed a letter of intent to pay $18 million for the 3.2 million square foot property on 142 acres, expects to produce 75,000 to 100,000 plug-in sedans per year. The plant is expected to create or support 2,000 factory jobs as production reaches full capacity in 2014. More than half the vehicles will be exported.
Fisker is using a $528 million U.S. government loan to overhaul the Boxwood Road plant.
GM broke into two companies during bankruptcy with certain assets emerging in July as the new GM and unwanted assets left under court protection as Motors Liquidation Co .
Fisker selected the Wilmington plant for its size, world-class paint facilities, access to shipping ports, rail lines and available skilled workforce.
'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,' Henrik Fisker, Fisker Automotive's chief executive.
Fisker was created in 2007 and utilizes the powertrain capabilities of Quantum Fuel Systems Technologies Worldwide Inc .
U.S. and overseas manufacturers are racing to deliver the first plug-in hybrids, which are viewed as the best near-term technology for transforming the American auto market.
Car buyers are demanding more fuel efficiency with gasoline prices high and the Obama administration and Congress, trying to reduce U.S. dependence on imported oil, are boosting funding for battery research and electric car production.
Ford, electric car maker Tesla Motors, and Nissan Motors , have also received government loans for building advanced technology vehicles. GM, which plans to build the Volt plug-in, and Chrysler have applied for funding.
The sale of the Wilmington facility is subject to a routine evaluation period and bankruptcy court approval. Proceeds will be placed in the GM estate, according to the AlixPartners restructuring firm.
Motors Liquidation has about 200 properties, many of which are plant sites or landfills.
(Reporting by Chelsea Emery and John Crawley; Editing by Tim Dobbyn) Keywords: MOTORSLIQUIDATION/SALE (john.crawley@@thomsonreuters.com; reuters.com +1 202 898 8340) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
