Electric car maker Fisker Automotive laid off 80 percent of its staff, according to published reports.
The decision was later confirmed by the Delaware Governor’s Office.
“We have been closely monitoring the company’s situation are disheartened to learn that Fisker intends to lay off most of its remaining workforce. This does not bode well for a company that, at one point, had the potential to produce a cutting-edge clean technology vehicle in Delaware,” said Cathy Rossi, spokesperson for the governor. “But without a battery supplier and without access to hundreds of millions in capital from the U.S. Department of Energy, Fisker is in a difficult position. Our goal is to put autoworkers back on the job at Boxwood Road, and the state will continue to work with Fisker’s investors and remaining management to make the best of this situation.”
The news follows reports that Fisker has hired a law firm to advise it on bankruptcy options. It owes a loan repayment to the Department of Energy this month, and has been cutting costs and furloughed its employees last month. The company hasn’t made a car since the summer of 2012, after its battery supplier went into bankruptcy proceedings.
Fisker had been slated to build a mid-sized automobile at the former GM Boxwood plant. Work on that site was halted and employees were laid off last year when a federal loan was suspended.
Fisker used a $20 million–plus financial package to start work on the plant. A bankruptcy filing would put the state in line with other creditors in getting back the loan proceeds.
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