DETROIT --
"The company regrets having to terminate any of its hard-working and talented people. But this was a necessary strategic step in our efforts to maximize the value of Fisker's core assets," the statement said.
The statement said Fisker met with workers on Friday to tell them this would be their last day with the company. Core workers who will be kept were told on Thursday, the statement said.
Fisker said it has sold about 1,800 Karmas, but production was halted last year when battery producer A123 Systems Inc. went into bankruptcy protection. The Karma is Fisker's only model, but it was developing a lower-cost car - the Atlantic coupe - which would sell for around $55,000.
But Friday's layoffs cast doubt on Fisker's ability to repay a loan from the U.S. Department of Energy that was made to help the automaker get started. In 2011, the Energy Department suspended the $529 million loan after introduction of the Karma was delayed due to trouble with battery packs. Fisker got $193 million from the government before the payments were stopped in May of 2011.
Fisker's troubles show just how difficult and costly it is to start a car company and introduce a new technology. Gas-electric powertrains allow the Karma to go 30 to 40 miles on battery power before a backup engine kicks in. The engine eliminates anxiety over running out of electricity.
Fisker has had other stumbles. Consumer Reports magazine last year gave the Karma a failing grade, citing numerous dashboard glitches and a battery that failed while the car was being tested.
Last fall, in an appearance in Detroit, Posawatz declined to say which companies Fisker is negotiating with as potential buyers or partners. But he said the company's hybrid system is very valuable to other companies. Fisker uses an engine from General Motors in the Karma and plans to use a BMW engine in the Atlantic.
• Read more articles by TOM KRISHER
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