Fisker Automotive Fires 75 Percent of Workers

Fisker's Karma car / AP

Fisker Automotive announced today that it would cut 75 percent of its workforce after failing to secure an investor, reports Bloomberg:

The maker of rechargeable $103,000 Karma sedans told a "core group of employees in Southern California" yesterday of the plan and expects about 25 percent of workers to stay, the Anaheim, California-based company said in an e-mailed statement. Fisker had about 200 employees prior to today’s action, the company said last week.

"Our efforts to secure a strategic alliance or partnership are continuing in earnest, but unfortunately we have reached a point where a significant reduction in our workforce has become necessary," the carmaker said in the statement. The cuts are a "strategic step in our efforts to maximize the value of Fisker’s core assets," the company said.

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Troubled started last year when Fisker’s car battery manufacturer, A123 Systems Inc., filed for bankruptcy. As a result, Fisker suspended the production of Karmas. A123 was then bought by a Chinese firm and renamed B456 Systems Inc. Fisker received a government loan totaling $529 million in 2010 for its luxury plug-in cars.

Fisker, founded in 2007, has sold about 2,500 plug-in cars. The company has said it was seeking investors to raise funds for a second model, the Atlantic, to be priced lower than the Karma.