Fisker Automotive may have been saved

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The manufacturer based in Anaheim, California suspended production of the Fisker Karma in 2012 when the company supplying its batteries went into liquidation. It was also sued by Tesla Motors and lost some three-hundred Karmas when Hurricane Sandy hit Port Newark while the cars were awaiting export, all of which dented investor confidence. Now finding itself in bankruptcy, it seems to have done a deal with Hong Kong millionaire, Richard Li, to buy the assets.

The effect of this is good for a company which has been innovative in developing the plug-in hybrid, but less good for the federal government. Under the somewhat controversial Department of Energy clean vehicles program, a line of credit was given the company. As it stands, the federal government may lose $139 million with production moved to Finland. This loss would be more bearable if the money had been used to develop technology for the mass market. Unfortunately, the result is a low volume luxury car which has had reliability problems. Not quite the success the government was looking for in the drive for more environmentally friendly vehicles.

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