Fisker has agreeement for Wilmington-Announcement

[Small Dealer]

Here is the official press releases and news of this morning's announcements from Wilmington:

Originally Posted by Automotive News Fisker to buy GM plant for $18 million; UAW will 'partner' Richard Truett Automotive News | October 27, 2009 - 10:30 am EST The old General Motors plant in Delaware that until July cranked out sports cars for Pontiac, Saturn and Opel will be sold and retooled to build plug-in hybrids with UAW workers. Fisker Automotive said today that it will buy the plant, located in Wilmington, Del., from Motors Liquidation Co. -- the old General Motors Corp. -- for $18 million. If Fisker's plans come to fruition, production at the plant could start in late 2012. Another $175 million will be spent to refurbish and retool the factory over the next three years, Fisker said in a statement. The company has qualified for $528.7 million in federal loans from the Advanced Technology Vehicle Manufacturing program. Fisker plans to build a mid-sized plug-in hybrid family sedan that will sell for $39,900 after federal tax credits. The company plans to sell between 75,000 and 100,000 units per year, with about 50 percent to be exported. Several hurdles But a lot has to go right before that can happen. The company has to hire and retrain a work force; design, develop and certify the car; and establish a supply base. So far, Fisker has sold only a few hand-built luxury cars based on BMW underpinnings. Its first higher-volume car, the $87,000 Karma, is slated to start production in Finland next year. CEO Henrik Fisker said Wilmington was selected for its production capacity, world-class paint facilities, access to modern shipping ports, rail lines and skilled work force. GM built the plant in 1947. Over the years it has built more than 8.5 million cars. Production capacity is 300,000 per year. UAW is a 'partner' The Fisker press release includes a statement from the plant's union, UAW Local 435. "It gives me great pride to give UAW Local 435 workers the opportunity to partner with Fisker Automotive to create a greener America by building a plug-in hybrid car that will compete globally," Gary Casteel, the UAW director responsible for the plant, said in the Fisker statement. According to its Web site, the local represents about 500 employees and 2,300 retirees at the plant. PRESS RELEASE: FISKER AUTOMOTIVE TO BUY U.S. ASSEMBLY PLANT TO BUILD AFFORDABLE PLUG-IN HYBRID CARS WILMINGTON, DE -- Oct. 27, 2009 – Fisker Automotive has selected the Wilmington Assembly plant in Wilmington Delaware to build affordable plug-in hybrid cars. Fisker executives made the announcement inside the dormant facility today, joined by Vice President Joe Biden, Delaware Governor Jack Markell and other state officials. The plant will support Fisker Automotive’s Project NINA, the development and build of an affordable, family-oriented plug-in hybrid sedan costing about $39,900 after federal tax credits. Production is scheduled to begin in late 2012. Fisker Automotive anticipates Project NINA will ultimately create or support 2,000 factory jobs and more than 3,000 vendor and supplier jobs by 2014, as production ramps up to full capacity of 75,000-100,000 vehicles per year. More than half will be exported, the largest percentage of any domestic manufacturer. The modernized Wilmington Assembly plant was selected for its size, production capacity, world-class paint facilities, access to shipping ports, rail lines and available skilled workforce. “This is a major step toward establishing America as a leader of advanced vehicle technology,” said Henrik Fisker, CEO. “Wilmington is perfect for high quality, low volume production and will soon be the proud builder of world-class, fuel-efficient Fisker plug-in hybrids.” Fisker Automotive has signed a letter of intent with Motors Liquidation Co. (MLC), formerly known as General Motors Corp. to purchase the Wilmington plant for $18 million after a routine four-month evaluation period. An additional $175 million will be spent to refurbish and retool the factory over the next three years. Funds will come from a conditional loan of $528.7M the Department of Energy awarded the company in September. The loan is part of the $25B Advanced Technology Vehicle Manufacturing loan program (ATVM) appropriated by Congress in 2007 to help the United States lead in the development and manufacturing of advanced technology vehicles. The company’s first car, the Fisker Karma, will be the world’s first production plug-in hybrid when it goes on sale this summer at retailers in the U.S. and Europe. Fisker plug-in hybrid cars will help remove the country’s dependence on foreign energy by eliminating the need for 42 million barrels of oil by 2016. They will also offset 8 million tons of carbon dioxide emissions. “With our close-knit business, government, and educational communities and our potential to respond rapidly to new opportunities, today's announcement is a testament to what works best in Delaware. Fisker is a perfect partner in shaping Delaware's economic future, and we are thrilled that the vehicle that can reshape the automobile industry will be built here in Delaware, by Delaware workers.” said Governor Jack Markell (D-Delaware). Gary Casteel, UAW director responsible for the plant, said, "It gives me great pride to give UAW Local 435 workers the opportunity to partner with Fisker Automotive to create a greener America by building a plug-in hybrid car that will compete globally." ABOUT FISKER AUTOMOTIVE, INC. Fisker Automotive is a privately owned, premium American car company with a vision to lead the automotive industry into the next-generation of automobiles with high-end design expertise and eco-friendly powertrain technology. Global headquarters are in Irvine, California, USA. The company was created in 2007 to leverage the design capabilities of Fisker Coachbuild, LLC, founded by auto design veterans Henrik Fisker and Bernhard Koehler, and the PHEV powertrain capabilities of Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ-QTWW), a major Tier 1 supplier of clean vehicle technologies to the automotive OEMs. Previously, Fisker, CEO, was design director for Aston Martin and president and CEO of BMW’s DesignworksUSA. Koehler, COO, led operations for Ford’s Global Advanced Design Studio and created concept cars for Aston Martin, MINI and BMW. ABOUT WILMINGTON ASSEMBLY The Wilmington Assembly plant was built by General Motors in1947. Over the years it has been expanded to 3.2 million square feet on 142 acres of land. It includes an on-site powerhouse and waste water treatment facility. More than 8.5 million cars have been manufactured there, including the Pontiac Streamliner, original Chevrolet Impala, 1997-1999 Chevrolet Malibu, Saturn L-Series and the Pontiac Solstice/Saturn Sky/Opel GT roadsters. Production capacity is 300,000 cars per year. The plant and its workforce have received many awards for excellence in quality, production and safety.

[NormSky]

Thanks for the update!


Norm

[solli4me]

There's a story about Fisker's plans in today's business section of the NY Times.
It's great news for Wilmington.

[Northstar24]

While it is good news for the folks at Wilmington, that pretty much ensures that all of the tooling and such for the Kappa will dissapear correct? I would think that puts a kink in the supposed plans for DeLorean to bring the Kappa back

[sirwm]

This has been on the local TV news the last couple of days.
The press release says a lot more than the TV news stories did.

[AZDarkSol]

Originally Posted by Northstar24 While it is good news for the folks at Wilmington, that pretty much ensures that all of the tooling and such for the Kappa will dissapear correct? I would think that puts a kink in the supposed plans for DeLorean to bring the Kappa back

Push has come to shove regarding anyone bringing back Sols into production. The tooling now sitting in the plant collecting dust would have to be sold or scrapped. If scrapped, game is over for good. Considering the tooling was already in a production plant for sale that was designed to produce these cars..I would say it is game over...Take care of your Sols..

Also what about replacement parts? Is this the same tooling that produced all of them? Maybe some parts provider will purchase the tooling. Remember all the sheet metal for our cars except for the side fenders are hydroformed. That is specialized equipment. If that stuff is scrapped that would definitely be a problem down the road.

[Small Dealer]

I don't think this is the final mail in the coffin for the Kappas. In fact it may be a good thing.

The plant that produced the Kappas will now be brought back to life as an assembly plant. Not mothballed, not totally torn down, and not converted to other uses.

The Kappa production lines took up just a percentage of the plant's available floorspace. A plant that had a capacity at one time to produce approximately 300,000 units per year, was doing less than 50,000 Kappas per year.

Could Fisker's 100,000 "Nina" units co-exist with another manufacturer producing 25,000-50,000 units per year? Subleting parts of the plant could even lower Fisker's operating costs.

The Kappa Dream Car Comapny wouldn't have to buy the plant now, lowering the cost of it's launch. It could lease space from Fisker. Actually getting Fisker some cash flow leading up to their Start-of-Production for "Nina". Would give the UAW workers jobs to hold them for Fisker, than more could be hired back by KDCC.

Who really knows, this could actually be the thing needed for someone to cary on the Kappa platform. It shows Motors Liquidation is willing to deal. The University of Delaware has offered $6 Million more for the Chrysler plant in Newark.

[Kappster]

I know nothing about the plant or what was actually done there.
But I would think that tooling for the sheet metal (body panels and Frame) is safe. And manufacturing of those panels, maybe not even done at that location, but at another GM plant or maybe a suppler of some other location.
The Plastic mold work for interior parts also done somewhere else.
Rubber parts also from somewhere else.
The wheels are probably made in china.
I would think that "tooling" at this assembly plant is limited to "shop aids" to assist workers in assembly of the car only.
I have to believe that all that liability and responsibility to "supply parts" are safe because of law.
Most profit is made in replacement parts. Not the original product sell.
Money made on the back end not the front end.
Now maybe someone or company could buy the rights to supply those parts, thus have the option to purchase the existing tooling.

[snaponbob]

A friend of mine works for a company that is involved in conveyor systems as used at auto plants. His company has been involved at Wilmington for decades and was so when it was configured for the Kappas. He knows the plant. I asked how the manufacturers handle the closings or retooling. Many of the sheet metal stamping machines have interchangeable dies (forms) so the machines get recycled if they are needed elsewhere. Otherwise, in a closing they are simply left behind and the next owner of the building can do whatever they want with them as that is cheaper than moving them around. The "value" is not completely lost to the company as they can they be fully depreciated or written off. Any high value or proprietary stuff is removed. Fisker may or may not have a small windfall from all of this. With all the plant closings, GM is probably up to their eye balls in equipment all over North and Central America. As for production potential at Wilmington, Fisker had said (before Biden's gaff) that they were looking at 100K units of plug in electric cars with about 50% export. Assuming a successful launch, the excess square footage will be an asset. Time will tell.

[Kappster]

So they left the presses (machines) and took the actual "Molds, dies, forms" that are the solstice.
Gm is not going to let go of the solstice tooling unless they have to sell for cash flow.
The tooling can be set up anywhere there are machines. Any state, country.
Wilmington is just a building. And of course the skills of the previous employees. But since GM will just be selling parts it don't much matter who's pushing the button on the machines.

The Government of the USA...really means,
"The Dismantling of the American Dream"

[larry4pyro]

I am hoping Fisker is successful with this venture. It would be great to see a new auto manufacture, particularly one that exports, rather imports cars. On the other hand I'm concerned about our government loaning a half billion dollars to a company with no major manufacturing experience, and no dealer network. I am also disappointed about using taxpayer money to create a competator to the Chevy Volt.

Larry4pyro

[GS Stage 1]

Originally Posted by larry4pyro I am hoping Fisker is successful with this venture. It would be great to see a new auto manufacture, particularly one that exports, rather imports cars. On the other hand I'm concerned about our government loaning a half billion dollars to a company with no major manufacturing experience, and no dealer network. I am also disappointed about using taxpayer money to create a competator to the Chevy Volt. Larry4pyro

If you really think about it, we are in a very strange place now. Since majority ownership of GM is held by the US government: Then effectively Uncle Sam is loaning money to Fisker to start up production of a vehicle that will be in direct competition with Government Motors Chevy Volt.

[jimmyo]

I've always heard that competition is good for the consumer. It forces the manufacturers to improve their products to compete for customers.

[Carpe Diem]

Originally Posted by Small Dealer I don't think this the final mail in the coffin for the Kappas. In fact it may be a good thing. . . .

IMHO, the final nail in the coffin will likely be the UAW. They'll 'partner' and make nice for now so that they will get some of their jobs back, but after a while, the union's demands, strikes and typical modus operendi will make work rules so inflexible and wages and benefits so costly that Fisker will become non-competitive, and the Fisker (and the hope of a Kappa future) will just fade away.

[snaponbob]

Originally Posted by Carpe Diem IMHO, the final nail in the coffin will likely be the UAW. They'll 'partner' and make nice for now so that they will get some of their jobs back, but after a while, the union's demands, strikes and typical modus operendi will make work rules so inflexible and wages and benefits so costly that Fisker will become non-competitive, and the Fisker (and the hope of a Kappa future) will just fade away.

The Kappa future was a dead end anyway with production to go only through 2011 and the Kappa ll was killed quite a while ago.

But you contention that UAW will be a barrier to success for Fisker is probably correct. In the media reports about the hoopla on Tuesday more than a few reports mentioned that more than a few UAW in attendance were still bitter and "not impressed" with Fisker and the sale of the plant. Why do some of these people assume that have some sort of packages of rights to more pay and more pay and more pay for less work and less work. Oh well. Good luck to Fisker. They guy may have quite a good future with the venture assuming the UAW wants him too succeed. If not, he is doomed.

Side note. Gettlefinger should have been canned by the government as well.