Auto Start-up Buys Old GM Plant In Delaware

After GM Motors closed its Delaware plants, nearly 10,000 workers were laid off. Nearly three years later and a new automotive player is in the game. Fisker Automotive, which is based out of California, purchased the 142 acre site for just under $20 million. The company, which makes luxury hybrid and electric cars only has one model currently in production, the Karma. Priced competitively at $95,000, Fisker just might become a company to contend with.

Some former GM employees will be able to get a fresh start with Fisker Automotive. Though they haven’t officially brought any new Delaware employees on, Fisker Automotive will employ approximately 2,000 local residents. As many as 15,000 auto workers have submitted their resumes. There might not be a lot of demand for luxury cars that are also fuel efficient, but Fisker believes that its concept vehicle, code named ‘Project Nina’ will change the way that consumers think.

Fisker Automotive has already shown that it is capable of making cars that are sleek in design, but consumers are always weary about new companies. A single recall could put Fisker Automotive behind, however, the company also has over $500 in federal funding to play around with. Fisker hopes to manufacture approximately 100,000 cars a year, starting in 2012. Reportedly, BMW is already working on a hybrid vehicle that will appeal to conservationists as well as wealthy buyers. It was first thought that luxury car makers would not get into the electric car market. With other major car companies looking to cash in on the electric car buzz, Fisker Automotive is already off to a great start.

About the Author