Fisker Signs Karma Plug-In Hybrid Manufacturing Pact With Finnish Firm

Much of the rest of the automotive world may be crumbling, but an independent Southern California firm backed by heavy hitters in the green transportation investment arena looks to be going strong.

Fisker Automotive said late Wednesday that it has signed the final contract with Finland's Valmet Automotive for manufacture of the upcoming Fisker Karma plug-in hybrid EV (left).

Production of the car, expected to list at abut $80,000, is scheduled to begin in the fourth quarter next year.

Valmet is an automotive engineering and manufacturing contractor - it also builds Boxter and Cayman models for Porsche.

The contract wth Fisker calls for for the company to install a new body welding line at its plant in Uusikaupunki, about 150 miles northwest of Helsinki. Valmet also will adapt its existing paint and assembly processes to handle the four-door Karma sports sedan.

The company said in a statement Wednesday that the Fisker contract will provide 500 manufacturing jobs.

"The agreement is very significant for us and our employment situation in the years to come" Valmet President Ilpo Korhonen said in the statement.

"A hybrid drive train, battery technology and a new body design with light weight materials is a great challenge to our engineering and production teams.

Privately owned Fisker Automotive introduced the Karma concept at the Detroit Auto Show 11 months ago and has since taken more than 1,000 orders for the car, said chief executive Henrik Fisker.

He said the company has set an annual production goal of 15,000 vehicles.

Southern California based Fisker is being backed by a number of venture capital firms specializing in green initiatives. They include Kleiner Perkins Caufield & Byers, Palo Alto Investors and the Qatar Investment Authority.

John O'Dell, Senior Editor

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John O'Dell November 13, 2008, 3:03 AM

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Fisker, Plug-ins and Electric

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