Department of Energy to lose USD139 million on Fisker loan

By VCPOST Staff Reporter

Nov 23, 2013 02:28 PM EST

The Department of Energy (DOE) will lose about USD139 million on a loan given to the Karma plug-in hybrid sports car maker Fisker Automotive under a Department of Energy clean vehicles program. The carmaker had sold the loan to a Hong Kong investment group, headed by Hong Kong tycoon Richard Li, according to a report published by Los Angeles Times.

The Anaheim-based automaker has filed petitions to liquidate under the US Bankruptcy code. Li's Hybrid Technology committed a maximum of USD8 million to finance the sale and the Chapter 11 process, the report said.

Investor group Hybrid Technology bought the federal loan made to Fisker. Subsequently, Hybrid Technology acquired the carmaker's assets, the report stated.

The federal government said Hybrid Technology committed to work on restarting the Karma production to the US. The company also plans to maintain the design and engineering process of Karma in California, said the report.

Fisker stopped the production of the Karma hybrid car last year when it ran into financial difficulties. The said car is a hybrid model that can run on gasoline and electricity. Henry Fisker is the designer of the car. Fisker designed other high-end cars including the BMW Z8 and the V-7 Vantage, Los Angeles Times reported.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics