Fisker to power up plug-in hybrid production

US plug-in hybrid manufacturer Fisker Automotive has landed $528.7m (£330m) in low-cost loan capital from the US Department of Energy for the development of its next-generation plug-in vehicles.

The company, which is developing a plug-in hybrid luxury sports sedan called the Karma, will use $169m of the funding to complete the vehicle, which is expected to exceed 100 miles per gallon in fuel economy.

The car features a lithium-ion battery designed to give the Karma a 50 mile emission-free range on a single charge, before the internal combustion engine kicks in. According to Fisker, if driven less than 50 miles a day and fully charged overnight, the Karma can use as little as one tank of gas per year.

The rest of the loan will go towards the development of project NINA, a family-focused plug-in hybrid of which it hopes to sell 100,000 units annually. The vehicle will launch by 2012, says the company, and is expected to be a direct competitor for GM's high-profile Chevy Volt plug-in hybrid.

The funding came from a $25bn Advanced Technologies Vehicle Manufacturing Loan Programme, which Congress created in November last year. Fisker said the loan and resulting expansion would save or create at least 5,000 jobs in the US.

In related news, India-based electric car firm Reva was also in the news this week, as it narrowed down locations for the US manufacturing facility for its forthcoming REVA NXR. According to reports, Syracuse in New York state is a front-runner for the new site with state and federal financial incentives said to be a key driver behind the decision.

And finally, legal wrangles at electric vehicle manufacturer Tesla Motors appear to have resolved, after company founder Martin Eberhard this week dropped a lawsuit that he had filed against the company and its chief executive, Elon Musk.

Eberhard had sued for slander, mismanagement, and delivery of a damaged roadster. Eberhard and Tesla were embroiled in the conflict for two years, but now say that they want the best for the company.