When the federal government and its Department of Energy shell out $529 million to develop an eco-friendly plug-in hybrid vehicle, it’s wise to abide by those little rules and milestones in the loan agreement. Mostly because the government has an uncanny ability to create bad financial karma whenever they deem it necessary.
Fisker has missed milestones tied to the development and commercialization of the $103,000 Karma, and the DOE is now withholding the $336 million loan balance while negotiations take place to try and change financing terms.
Project Nina, the cutesy family-sized $50K plug-in that’s supposed to be Fisker’s next model, must wait on Karma to realize her own fate. Development of Nina has ceased at the GM-run Delaware plant, with Fisker letting go 26 workers there and another 40 contractors at corporate headquarters in Anaheim.
Fisker acknowledged being three-months behind its original Karma production schedule, and has only delivered 250 of the Karmas to its dealership network. While the company is behind schedule, the government has maintained (publicly, at least) its confidence in the start-up.
Oh how unenviable it is to be the little sister, unable to go to and fro without the blessing of your parent’s because of your brother’s misbehavior.
Good KarmaWoo coming your way if you buy a new car with CarWoo. Click here. Do it, or else.
Image by lexnger