Looks like bad times have dawned on Fisker, and it has been forced to temporarily halt production of its Karma plug-in hybrid. The decision comes after its lithium-ion battery supplier A123 Systems reduced output.
A123 Batteries, is the main supplier of batteries for Fisker Karma, had filed for bankruptcy last week. Fisker has enough lithium-ion batteries with it if any owner needs a replacement.
The car company had plans to debut the Karma in the Chinese market where they could have minted millions of dollars in sales. Earlier, the United States government funded both A123 and Fisker in the form of government loans for “green” projects.
Fisker has reportedly received a $193 million of their landmark $529 million government loan. An auction to sell A123 is planned on December 6 and the company hopes to have a clear idea on its battery inventory.
Johnson Controls and China’s Wanxiang Group will be the potential buyers. Other companies that have shown interest include NEC CorpofJapanand Siemens AGofGermany. According to the U.S. government, the company could be sold only with their consent.
Misfortunes come in bunches for Fisker as they had to recall batteries made by A123 and the U.S. Department of Energy blocked Fisker from accessing a part of its $529 million loan. The company was forced to push back its China launch for the $100,000-plus Karma to the first quarter of next year from the end of 2012.