Fisker Automotive, which has yet to build its first car, is expected to sign a deal to buy GM's shuttered plant in Wilmington, Delaware that previously built the Pontiac Solstice and Saturn Sky. Vice President Joe Biden is scheduled to make an appearance in his home state tomorrow to announce the deal.
Fisker has already contracted production of its upcoming Karma electric sedan to Valmet Automotive of Finland. The Wilmington plant would be used to build Fisker's second vehicle which is expected to have a price closer to $50,000 when it debuts in 2012.
And how can an automaker with no revenues afford to buy an entire auto plant? Easy, the government gave it to them. Actually, the government gave Fisker a $528M loan, which should be more than enough to pay for the idled plant. The money will then go to GM which just so happens to owe the government a big chunk of money itself. And just like that, the government gets its money back. Now that's a deal.
AutoObserver: "Old" GM May Offload Plant on New-Age Automaker
redliner says:
02:18 PM, 10/26/09
So in a way, the gov is simply paying itself? I wonder how solid the word 'loan' is. Will some of the debt be pardoned?
bodyblue says:
03:59 PM, 10/26/09
How disgusting. If anyone on here has read "Atlas Shrugged" then they will understand.