The economic downturn starting in 2007 rocked America’s Big
Three Automakers with GM going from global leader to bankrupt in short order.
The remains of GM’s productive capacity have left indelible marks on the Northeast
and Midwest. California-based EV producer Fisker Automotive is stepping into GM’s
former environs to increase its productive capacity over the next decade.
The automaker acquired a former GM plant in Wilmington, Delaware for $18
million with plans to use a federal loan carry out a large-scale EV rollout.
Fisker Automotive recently qualified for a federal loan of
$528.7 million from the Advanced Technology Vehicles Manufacturing program. This
federal loan program has already contributed $8 billion in funds to Ford,
Nissan and Tesla to spur PHEV development. Fisker plans to spend $175 million
on a three-year redesign project in the factory in order to prepare for its use
by 2012. The automaker plans to have its first models built in Delaware ready
for sale by the end of 2012 with a projected annual quota of 100,000 units by
2014.
The most heartening aspect of Fisker’s purchase of the
Wilmington GM plant is the prospective benefit to local workers. Fisker
Automotive says that it will look to laid-off GM and Chrysler employees in the
area to operate the refurbished plant in 2012. The PHEVs rolling down the line
in Wilmington may be different from traditional cars and trucks but Fisker
knows that many of the same skills carry over from the GM plant. The federal
government has provided $3.8 million from its National Emergency Grant program
to help area workers in Delaware retrain for new jobs. Fisker Automotive may
make these grant dollars go further by building on the experiences of GM’s
former work force.
Fisker Automotive is not only poised to widen its productive
capacity but also to act as a good example to other automakers. The
acquisition of an existing facility with sufficient space means that a growing
automaker can spend money on redesigns rather than building from scratch.
Fisker’s intention to hire GM and Chrysler workers for its Wilmington plant
smooths the learning process, thereby increasing efficiency once the lines
start. The biggest benefit from inhabiting an old GM factory, however, may be
constant perspective on how to stay competitive in the auto industry. Fisker
Automotive should always be mindful about the lack of imagination and foresight
by General Motors that allowed the Wilmington facility to shut down in the
first place.
