Fisker Automotive, the maker of an exotic electric sports car that is being produced with the help of a Federal loan guarantee, has announced layoffs while it is trying to secure more funding from the Department of Energy (DOE), ABC News reported.
According to the news outlet, the company announced that 26 employees have been let go from a factory in Delaware, a site where renowned automotive engineer Henrik Fisker promised to produce affordable electric sedans in the future.
ABC reported that the company is one of a handful of auto companies to receive sizable Federal loans to help stimulate and support a new electric car industry in the U.S.
The Associated Press reported that Fisker has received $193 million of the $529 million DOE loan, mostly for work on a car that sells for roughly $100,000. The introduction of the “Karma” was delayed due to regulatory issues and battery pack problems that prompted a voluntary safety recall.
The layoffs were defended by the company, but Delaware Governor Jack Markell felt the move was damaging to his State.
“We are frustrated that Fisker and the DOE have been unable to come to terms on revisions to their loan agreement in time to avoid this,” a spokesman for the Governor said in a statement.