GM Plant To Build Fisker Hybrid Cars

By: Bill Waters
Staff Writer
Published: Oct 27, 2009

Fisker Buys GM Plant To Make New Hybrid Cars

GM (General Motors) has sold its Boxwood Road plant in Wilmington, Delaware to Fisker Automotive for $18 million to build new hybrid cars. The factory is 3.2 million square feet sitting on 142 acres. Fisker is expected to create 2,000 jobs as production begins in 2012.

"Wilmington is perfect for high quality, low volume production and will soon be the proud builder of world-class, fuel-efficient Fisker plug-in hybrids," Henrik Fisker, Fisker Automotive's chief executive, said in a statement.

Fisker was granted a $528 million loan by the government that will be used to convert the factory. It plans to spend $175 million to refurbish the plant. GM used the plant to build automobiles for more than 60 years. Fisker wants to make and sell between 80,000 to 100,000 hybrid electric vehicles per year. The company will export more than half the vehicles to other countries.

Hybrid cars offer better mileage than conventional gasoline vehicles. The new automobiles are equipped with a small combustion engine and an electric motor. The electric motor is mostly used at slower speeds and turns off the engine to save gas. When the combustion engine is running, it recharges the battery, which is then used to power the electric motor.

Consumers are demanding more fuel efficient cars due to gas price concerns. In 2008, gas prices soared to record highs, which prompted many Americans to shop for fuel efficient vehicles. Most economy experts predict another rise in gas prices in 2010.

Car manufacturers are in a race to build and sell vehicles that offer greater mileage. Hybrids are built using innovative technologies to reduce fuel consumption. For example, the energy that is normally lost during braking is captured stored in the battery for later use. These technologies help to make the automobile run more efficient and can help recharge the battery while on the road.

Not everyone is sold on hybrid cars. For example, some consumers fear that the electric battery will have to be replaced every 3 to 5 years. However, most of these myths have been debunked. Most auto manufacturers cover the electric battery under warranty for up to 10 years.