More Fisker Follies

Filed in National by on April 5, 2012

This morning’s News Journal article starts off with this:

Stunned Delaware officials struggled Wednesday to make sense of Fisker Automotive’s announcement that the startup hybrid carmaker may not build its next model here after all, with some former auto workers counting on Fisker’s jobs reacting with disgust.

I’m a bit concerned that any state official could have been “stunned” that Fisker was waffling. I’m troubled that Alan Levin, the director of the Delaware Economic Development Office, was “shocked”. The article goes on to interview more politicos who talk about phone calls they are making. But more importantly, TNJ talks to some of the would-be workers who are affected.

So as Fisker holds a gun to the head of the State of Delaware demanding that federal loans be released earlier, what is/was Plan B for Boxwood? Did we put all our eggs in one basket and hope for the best? Or does Delaware have alternative plans to get these auto workers back to work?

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Comments (19)

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  1. Que Pasa says:

    There’s that word again…”hope”.

  2. puck says:

    Plan A is: don’t talk about Plan B while Plan A is still on the table. Have you called your representatives and the White House to encourage them to renegotiate the financing?

    Governor Markell certainly understands about renegotiating agreements.

    Fisker is building its business plan around financing options other than the Energy Department loan, LaSorda said. The company increased its private funding to $1.1 billion, adding $392 million in a recent round of venture capital funding.

    “If we get it, fine,” LaSorda said of the more than $300 million of the government loan it can’t access. “If we don’t, we can still have a great company. We’re going to build this car with or without DOE funding.”

    From Fisker’s point of view, DOE is a minority investor, and an unreliable one at that. They are right to play hardball. Governor Markell worked hard to convince Fisker that Delaware would be a partner in their business success, but DOE has undone all that trust-building.

    If DOE forces Fisker to rely solely on its private funding, then Delaware and the US must compete with other potential factory locations all over the world. Trash-talking about Fisker will just help them make up their minds where to locate their facilities.

  3. Liberal Elite says:

    @QP “There’s that word again…”hope”.”

    And what a great word that it is. Are the Republicans going to run against hope?

    Here’s a slogan Mitt can run on: “Abandon ye all hope who actually elect me”

  4. Liberal Elite says:

    As an owner of an electric car (Nissan LEAF), and someone who intends to buy additional electric cars (they’re really great!!), I must say that I’m not too impressed with the Fisker cars. Sure they look nice, but technically, I don’t think they match up well with their competition. In the PHEV category, the Chevy Volt looks to me to be a superior design, and far cheaper. In the BEV category, I would much rather own something like the Esflow which will probably be in the same price range as the Fisker.

  5. fightingbluehen says:

    Who actually thought that this DeLorean like car company could compete in the same market as the established giants. “Back To The Future IV” anybody?

  6. Que Pasa says:

    It IS a great word, though, only when people understand its emphemeral meaning does not include actual guarantees.

    Apparently, a sizeable bolus of misinformed Obama-voters thought otherwise…’where mah Obamas monies at?!?’

  7. Que Pasa says:

    I bet I could single-handily flip your LEAF on its roof.

  8. Geezer says:

    “I bet I could single-handily flip your LEAF on its roof.”

    Assuming you meant single-HANDEDLY, and that you meant no levers or other devices — if your claim is that you could tip it over with just muscle power — I’ll take that bet. Curb weight of the Nissan LEAF is 3354 lbs., so unless your real name is Magnus ver Magnusson …

  9. Liberal Elite says:

    @QP “I bet I could single-handily flip your LEAF on its roof.”

    Ha. You really don’t have a clue, do you?
    Do you have any idea how much 24kWh batteries weigh? …and that weight is very low in the car, which explains why it corners so well, and also why it’s perhaps the most difficult car on the road to roll. This aint no Prius (about 800 lbs lighter)

    But it’s also darn quick. If we meet at a stoplight, you’ll be eating my dust, which is a good thing since my car doesn’t fart as it goes down the road.

  10. Que Pasa says:

    I doubt it…and 450 miles later, my Jetta TDI will be pulling into its FIRST refueling stop.

    In order to flip a car, it does not require one to lift the entire curb weight of the vehicle. Additionally, the car in and of itself functions as a lever that pivots on two of the wheels as one side is lifted, while momentum can be gained via rocking it on its springs. My best angled leg-press is 1250 lbs, so it would be close.

  11. heragain says:

    When I told my husband this news, he said, “You won your bet.”

    “There’s many a slip, twixt the cup and the lip.” as the saying goes. I just want to know who’s holding the damn cup. Not the workers, that’s for sure.

  12. Liberal Elite says:

    @QP “I doubt it…and 450 miles later, my Jetta TDI will be pulling into its FIRST refueling stop.”

    Really? That’s weird. I can get 600 miles on mine.

    @QP “In order to flip a car…”

    You’d find that flipping your TDI would be a lot easier (lighter and higher c.o.m.).

    But you gain a modicum of respect for driving a TDI. I envisioned you in an overweight and really crappy gasoline based SUV getting 12 miles per gallon. I’ve also got four registered diesels on the road including a Jetta TDI wagon, so I well know it’s characteristics. A vehicle for every function…. but the LEAF is getting most of the road time.

    …and if you spent a few day driving a BEV, you’d understand the difference between new technology and old technology. Getting back in the diesels is a noticeable step backwards for me.

    Oh.. and the LEAF is much quicker than any TDI, even one that’s been chipped and has larger injectors.

  13. Geezer says:

    “My best angled leg-press is 1250 lbs, so it would be close.”

    Uh-huh. I’ll still take the bet, if just to watch you trying to rock the car on its springs while you’re lying on your back beneath it. I also don’t think you’re tall enough to get the car to its tipping point from that position. But hey, prove me wrong. My guess is you’ll be willing to say anything before you’ll type the words, “OK, I was exaggerating.”

  14. Geezer says:

    One other point: “Stunned” is an inappropriate word for a straight-news story. Especially since the quote to back it up isn’t from a “Delaware official” but a former GM worker.

    The Ledford era places a greater emphasis on tabloid-style shock writing than journalistic caution.

  15. occam says:

    This seems like it was a poor investment.

  16. puck says:

    Carper and Biden have saved that plant from closing many times before.

  17. puck says:

    Since Fisker claims it has raised $1.1 billion, maybe the US should offer to continue the financing – if Fisker puts up collateral, and agrees to build in the US.

    With $1.1 billion on hand, it looks like a safe investment as long as the deal is set up correctly.

  18. occam says:

    If the plant isn’t making any thing and all of its employees have been/are going to be laid off was it really “saved”? We should ask for our money back.

  19. puck says:

    Fisker starts walking it back:

    Contary To Conjecture, Fisker is Still Planning To Build Its Atlantic In Delaware

    Despite rumors and speculation suggesting Fisker has changed plans to build the Atlantic in its Wilmington, Del. facility following a frozen Energy Department loan, the company is emphasizing it still aims to fulfill original production goals in place since 2009.

    According to Fisker spokesman Roger Ormisher, who spoke to us in a phone interview yesterday, “hypothetical” scenarios its representatives answered questions about were taken by some reporters to paint a picture beyond Fisker’s actual position to date.

    “Delaware’s the first option, that’s where we’re going to try and make it,” Ormisher said. […]

    “We’re ready to go when we close with the DOE,” Ormisher said adding the company has spent tens of millions already on refurbishing what was formerly General Motors’ Boxwood assembly plant. It reportedly needs a paint shop completed, but Ormisher said no major roadblocks were in place.

    Kudos to Fisker for persevering with Delaware, despite all the front-runners and WATBs who are all now grandstanding about giving up on Fisker. This may turn out to be one issue where Carper has more spine than us.