Fisker feeling flush after fresh funding

US green car start-up Fisker Automotive has confirmed that it is to move forward with ambitious expansion plans after securing multimillion-dollar loans from both the federal and the Delaware State government last month.

The company announced that it has now formally closed a $529m (£386m) low-interest loan from the Department of Energy (DoE) which was originally unveiled last autumn and had been earmarked to renovate an abandoned GM plant in Delaware.

That deal was followed last week by confirmation that the state of Delaware is to provide a further $21.5m loan that will convert into a grant after five years if the plant employs 2,495 workers and Fisker has invested at least $175m in renovation. An additional $9m grant will also help the company with its utility bills over the five-year period.

With Fisker having also raised an additional $115m in private capital earlier this year, the company is now well positioned to move forward with ambitious plans for a fleet of plug-in hybrid cars.

First, the company is expected to launch its plug-in hybrid sports sedan, the Karma, before the end of the year, taking the firm into direct competition with GM's soon-to-be-launched plug-in hybrid the Chevy Volt.

Fisker said the Karma will be able to travel up to 50 miles using its battery, before its internal combustion engine kicks in to drive the vehicle's electric motor.

The luxury car will be priced at $87,400, but Fisker also has its eye on the mainstream market and the Delaware factory will be dedicated to the production of more affordable plug-in hybrid sedans and coupés.

Dubbed Project Nina, the new range of vehicles is expected to be priced from $40,000, with the first models rolling off the production line in late 2012.