Fisker, the electric-car maker backed by a huge federal loan, has pushed back the start of production of its next model.
The Fisker Atlantic, a smaller version of its hybrid Karma model on sale now, won’t be made until late 2014 or 2015, Reuters reports. The disclosure came in a presentation to investors.
“The Atlantic is really the volume car that begins to build growth,” Chief Executive Tony Posawatz is quoted as saying by Reuters from the conference call. “It creates a business model that is one where we can really generate cash in the future.”
The new model is critical for Fisker. With a starting price of about $55,000 it would be half the price of the Karma. Thus, it would be brand’s big seller, the one that results in big profits.
The Karma, designed in the U.S. but built at a contract firm in Finland, was financed with the help of a $529 million loan from the Energy Department. The company spent $193 million of it before it was frozen for not living up to the terms of the loan.