Oct 27, 2009 9:31 pm US/Eastern
Fisker To Build Hybrid Cars At Idled Del. GM Plant
WILMINGTON, Del. (CBS 3) ―
Could a closed automobile plant in Delaware become the center of the next generation of American automobile manufacturing? That's what Vice President Joe Biden believes.
Mr. Biden came home to Delaware Tuesday morning to welcome the new owner of General Motors' Boxwood Road plant near Newport. Fisker Automotive, a California-based maker of upscale hybrid-electric plug-in vehicles, is buying the plant for $18 million. Fisker plans to make a $40,000 vehicle at the plant that gets up to 100 miles per gallon.
GM shut down the sprawling facility this summer, laying off hundreds of workers.
"It's unbelievable," said Tony Susi, who worked at the GM plant for 25 years but lost his job at the beginning of October. "There's just nothing out there work wise. We're hoping this plant can get up and running."
Fisker officials say they will spend $175 million overhauling the plant beginning next year. Production is expected to begin by 2012. Eventually, company officials say as many as 2,000 people could go back to work at the plant.
"It won't just bring back jobs. It will bring back something else: a sense of possibility," said Vice President Biden. "You've got to believe in innovation."
The plant is being overhauled with a loan from the economic stimulus package.
"I believe that you need to create passion in cars," said Henrik Fisker, the company's CEO. "You need to create beautiful cars so the consumer wants to buy these cars, wants to fall in love with these cars."
Fisker says the car produced in Delaware, called the Nina, will be able to drive 50 miles without using a drop of gasoline. Beyond that, the car runs like a hybrid: a small gasoline motor kicks in to power the engine and re-charge the battery.
"Eighty percent of Americans drive less than 50 miles a day, so the first 50 miles you drive … you don't use any fuel," Fisker said.
Fisker chose Delaware mostly because of the existing trained workforce. At its peak, GM employed 6,000 workers in New Castle County. Thousands more worked at Chrysler's plant in Newark which closed late last year.
"I don't say this for an applause line: you can see there's genuine, genuine appreciation," Biden told Fisker.
Company officials say they were also enticed by the plant's proximity to east coast ports and rail lines. Delaware state official moved quickly to seal the deal with tax incentives.
"They moved mountains for this deal," Delaware Governor Jack Markell (D) said about his staff members. "Delaware will soon be producing some of the most fuel-efficient, stylish performance cars the world has ever seen."
Company officials say they will begin hiring workers next year to help re-tool the plant. Beyond the factory jobs, officials say the production could create 3,000 regional supply and service jobs.
It can't come soon enough for Tony Susi.
"A lot of talk went on up on that stage," he said. "We'll see when things transpire."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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