21. AUTOS:

Fisker lays off workers as DOE negotiations stall project

Published:

An Anaheim, Calif.-based auto company has stopped work at a former General Motors auto plant in Delaware where it plans to build a family-sized plug-in hybrid that is expected to sell for about $50,000.

Fisker Automotive, a startup car company working on the development of hybrid vehicles, laid off 26 workers at the plant and 40 contractors at its headquarters, leaving the company with about 600 employees.

The company said it delayed work because of ongoing discussions with the Energy Department. The federal agency is withholding loans for the project because Fisker missed deadlines in getting its first vehicle, the Karma sports car, to market.

Fisker still plans to launch the car in 2013, but that could be delayed.

"It can take some time to renegotiate to the DOE's satisfaction the new milestones and goals," Fisker spokesman Roger Ormisher said (Jerry Hirsch, Los Angeles Times, Feb. 6). -- JE