So the News Journal wrote about this deal.
Renovations: Fisker will buy the old GM Boxwood Road plant out of bankruptcy court and invest $175 million to retool the factory
Not bad – some jobs in that one and hopefully some money that will stay in the state rather then have companies come from PA or NJ to retool the place.
Products: The plant will produce Fisker’s “Nina” model sedan, beginning in 2012. As many as 100,000 electric hybrid sedans, priced at $39,900 after federal tax credits, annually at the site. Fisker also plans to shift production of its $87,900 Karma coupe, now made in Finland, to Boxwood Road in 2012.
Let’s look at this number again — $39,900 AFTER Tax Credits – I don’t know about you, but I don’t buy 40K cars – do you? the second one is even better, a 88K car – YEAH RIGHT. I’d rather pay off our mortgage. I love the idea of having a car company make cars in Delaware, but could they be more affordable?
State incentives: The state will give Fisker a $12.5 million five-year balloon loan at 0 percent interest to pay for exterior renovations of the plant. If Fisker invests the expected $175 million inside the plant and employment has reached 2,500 within five years, the loan will become a grant. The state also will place a $9 million grant in an escrow account, which Fisker can draw upon to offset the cost of utilities.
What if the plan fails, they don’t employ that number of people and they…..fail. What if the cars don’t sell? This is, after all, a start-up company? That would be a lot of money that Delaware can’t recover – but if it works out – job well done. Who knows.
I wish them all the luck but for now I reserve my judgment until I see those cars rolling down Route 1.
