U.S. loans $528.7 million for Fisker $39,000 hybrid

The Fisker Karma at the Mazda Raceway Laguna Seca in August.

(Credit: Fisker Automotive)

Fisker Automotive has been awarded $528.7 million in U.S. Department of Energy loans to develop a more affordable plug-in hybrid for U.S. production.

The hybrid car start-up company is indeed developing a $39,000 plug-in hybrid electric car, as CNET News predicted last week.

Fisker currently refers to the mystery car as "Project Nina."

The majority of the funds, which were awarded from the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program, will be put toward developing and building production facilities for the Nina car in the U.S.

Nina's development and production will employ an estimated 5,000 U.S. workers counting indirect jobs from suppliers as well as direct Fisker employment, the company said Tuesday.

Fisker recently introduced the Karma, a luxury hybrid sedan that sells for about $87,900. A small portion of the Department of Energy funds will go toward further developing production facilities for the Karma in the U.S.

The Nina plug-in electric hybrid price of $39,000, is the estimate after government rebates are factored in to the price. While that price point would not be considered "affordable" to the average U.S. car buyer, it is an affordable price for plug-in hybrids and electric cars, which are not yet produced in large volume. Tesla's Model S electric sedan, in comparison, costs an estimated $50,000 to $56,400 after rebates. Tesla was awarded $465 million in loans from the same Department of Energy fund in June to build production facilities for the Model S.

Using the federal loans, Fisker hopes to produce 100,000 "Nina" cars annually in the U.S. starting in 2012. And while the cars will carry made-in-the-U.S.A. bragging rights, Fisker hopes to sell many of the cars elsewhere too.

"A significant percentage will be exported, helping to balance the U.S. trade deficit," Fisker said.

[Endbringer]

Glad to know my tax dollars are being spent on something not granted in the Constitution. This type of investment is what the private sector is for. I'm all for this type of innovation, but just not using my tax dollars for it. It is in essence the same as if that company put a gun to every taxpayer in the country and said, "Give me some money".

[robotechie]

I think the article said the money is a *loan*, not a grant, which means the companies have to pay it back with interest. This is not corporate welfare, but your tax dollars being used to jump start an idea that in the long run may have more benefits than just the dollar amounts you are so worried about.

[opiapr]

Well let china or india lead on electric car so you can keep you tax dollars. That whole "my tax dollar" theory it what have this country in the hole it is.

[mmichaels]

"Using the federal loans, Fisker hopes to produce 100,000 "Nina" cars annually in the U.S. starting in 2012."

Anybody have a betting line on whether they actually achieve this? In 2012, will we really be exporting 100,000 "Ninas" or will we have forgotten all about this teensie little half-billion dollar tax-payer loan?

[brewster_13]

I'll take that bet.
I, along with, I am sure, many thousands of people, are eagerly watching the electric and plug-in hybrid arena. The thing is, with this switch to electric drive vehicles, the barrier to entry into the auto manufacturing business has been lowered (in a sense). So there are several companies working on new technologies for manufacturing in ways the established auto makers just can't. It will be, in effect, a new market with no established market leaders, the field is wide open.
The other reason to watch them is that with your own solar electric panels, you can "gas-up" your own electric car. As the costs for solar electric systems continues to drop, and these electric cars become available over the next several years...
I plan to retire with a net-zero energy home, that will also power my electric autos, scooters and heat pumps. Using no fuel-oil for heating nor gasoline for driving.
So if these loans don't produce the expected new electric vehicles, it will be noticed.

[Spanwite]

Brewster, I like your comments, this has to be done now, otherwise the US has to import all of this. And as soon the Quantity of e-cars goes up the prices go down naturally!
If America would spend the same amount on money into new Technology as for War and into even bigger Banks that can not more fail (subsidized the Hummer and other waste of money too) , this Country would be a leader in this.
How much Money did go into a Town, that is several Feet under sea level? It will be flushed away again!

Develop high efficiency Solar Panels place it in the Desert, and roofs or into space, and "beam" it where it's need it.

[bowenthebeard]

I mean, yes, 39 thousand is less than 50 or 87, but I think they need to bump almost another 15-20 thousand before it can accurately be termed "affordable."

[sanenazok]

Uhm you're forgetting the massive inflation that the Obama administration is factoring into every backroom prediction. With a 3 trillion deficit, a loaf of bread will cost $39.99 by the time this car is on the market.

[mattie121]

Go Fisker! This is great news. I think it's wonderful that we're (as a nation) investing in future technologies. Too bad all the luddites don't see that energy is getting more expensive, and that we have two choices: develop the tech and industries here to provide the innovative products of the future, or buy them from foreign markets in the future and pump even more money and profits to other nations to buy our way out of the energy problems we do and will have.

Matt