Fisker to buy GM plant in Delaware

David Shepardson / Detroit News Washington Bureau

Washington -- Fisker Automotive Inc. said today it has signed a letter of intent to purchase a former General Motors assembly plant in Wilmington, Del., for $18 million.

The startup electric car company said it will work with the United Auto Workers union to organize the new plant. "Our intent is to work with the UAW," said Russell Datz, a Fisker spokesman. He declined to say if the company would give preference in hiring to former GM workers or whether it would negotiate a similar contract to the pattern agreement at GM and Chrysler. "That is really too far off," Datz said.

The UAW issued a statement praising Fisker.

"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 a statement released today.

The Irvine, Calif., electric car startup is buying the 3.2 million-square-foot plant, which was commissioned in 1947 and until this summer built the Pontiac Solstice, Saturn Sky and Opel GT models.

It will spend $175 million over three years retooling the plant, which will start assembling vehicles in late 2012 -- and will build 75,000 to 100,000 annually by 2014 -- and export more than half of the vehicles.

It plans to create 2,000 factory jobs by 2014 at the plant, Datz said. The sale is expected to close after a four-month due diligence period that will include a site evaluation to review possible environmental hazards.

The company made the announcement at an event at the former GM plant in Wilmington, Del.; Vice President Joe Biden, who represented Delaware in the U.S. Senate, attended.

"While some wanted to write off America's auto industry, we said 'No.' We knew that we needed to do something different -- in Delaware and all across the nation," Biden said. "We understood a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation."

Last month, Fisker won a $529 million Energy Department retooling loan that made the purchase of the factory possible. Of the total loan, $359 million is going to revive manufacturing at the Boxwood Plant in Delaware. Datz said the issue of the UAW did not come up in discussions with the Energy Department.

Fisker's new vehicle, project NINA, a more affordable, family-oriented plug-in hybrid vehicle, will be made at the former GM Boxwood plant in 2012 -- though it will still cost $39,000 after federal tax rebates. While the vehicle hasn't been designed, "engineering on Project NINA has already begun -- the $89,000 Karma sports car -- abroad. Much of the engineering work will be done in Pontiac. The low-volume Karma will be assembled in Finland by Valmet Automotive; the next generation Karma will be built entirely in the U.S.

The Delaware plant was among GM's "bad" assets that remained in bankruptcy when the new company emerged from court protection. The old company, renamed Motors Liquidation, is selling off its assets to pay creditors a tiny fraction of what they are owed.

"This is a big day for Wilmington, a big day for the creditors in this case and, I believe, a good day for America," said Al Koch, the vice chairman of AlixPartners and chief executive officer of Motors Liquidation.

dshepardson@detnews.com (202) 662-8735