Companies discuss sharing production of electric cars

Friday, October 5, 2012
Chris Woodward (

An energy policy analyst thinks that Fisker Automotive's decision to talk with other car companies about sharing parts and technology is another sign of problems with companies that received government funds.

Fisker CEO Tony Posawatz would not say who the company is talking to, but he does say that Fisker's plug-in hybrid technology is valuable and the company could save money by sharing parts.

Tom Borelli, senior fellow with FreedomWorks, discusses the problem with this proposal.

Borelli, Tom (FreedomWorks)"When you look at the whole electric vehicle, hybrid vehicle arena in the car marketplace, it really is a marketplace failure," he remarks.

"As we've talked about before, the Chevy Volt is far behind in terms of what they wanted to sell to consumers -- and at this point they're so heavily discounting the Volt that GM is losing about $30,000 every Volt they sell."

In the case of Fisker, the Anaheim, California-based company currently sells one model, the $100,000 Fisker Karma plug-in hybrid sports car. The company is developing the Atlantic coupe, but the sticker price on that model is $55,000 and Fisker has yet to say when it will go on sale.

"And following that, I think just last week Consumer Reports had a report, and they said that the car is just full of flaws," he tells OneNewsNow.

Fisker Automotive logoEarlier this year, a Fisker Karma broke down on a Consumer Reports test drive. The company was approved for a $529 million loan in 2009 but only received about one-third of the funds after failing to meet sales goals.

"It's clearly not ready for prime-time," Borelli says. "So it's not surprising they're looking for partners, which is fine in the private market space, but this is where government money should not be mixed up in high-risk ventures like electric vehicles."

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