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Fisker Seeks Alternative Funding Amid Renegotiation of Loan From Feds

Fisker Automotive Inc. has laid off 40 workers at its Anaheim headquarters and halted production on a mid-size sedan that had been slated for release in 2013.

The company employed about 650 workers in Anaheim prior to announcing the layoffs.

Another 26 workers were laid off at Fisker’s Delaware plant, where the company said it “temporarily delayed work” as it renegotiates a loan from the U.S. Department of Energy.

The company started its U.S. manufacturing operations last year in Delaware with plans for 120 initial hires. Fisker projected as many as 1,500 workers would eventually be hired to make its lower-priced sedan—initially dubbed the Nina—at a former General Motors Co. plant it bought there for $18 million.

Fisker said it remains hopeful of renegotiating terms of the loan from the energy department, but will also consider “alternative sources of funding concurrently,” according to spokesperson Roger Ormisher.

“Nina is part of Fisker’s long-term business plan,” he said.

It appears those plans now are in flux due partly because of recent criticisms of government funding for companies in green industries such as hybrid vehicles, solar energy and other sectors.

Criticism of the program has grown in the wake of some big loan setbacks, including defunct solar-panel maker Solyndra LLC in Fremont, which went bankrupt in August after receiving a $535 million loan from the energy department.

Solyndra is one of three companies to seek bankruptcy protection after getting significant backing from the federal agency under a green industry initiative. The most recent, New York-based electric battery maker Ener1 Inc., was chosen for a $118 million stimulus grant in 2009, and filed for bankruptcy last month.

Fisker has received $193 million of its $529 million loan from the federal agency, according to executives, with the remaining $336 million subject to renegotiation.

Most of that funding has been earmarked for the production of its luxury sedan Karma, which began deliveries to customers earlier this year after production delays and a recall.

The Karma is Fisker’s flagship model, and sells for about $100,000.

Founder Henrik Fisker recently told the Business Journal he planned to temper early publicity for the mid-size sedan, which is expected to cost about $50,000.

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