The old General Motors plant in Delaware that until July cranked out sports cars for Pontiac, Saturn and Opel will be sold and retooled to build plug-in hybrids with UAW workers.

Fisker Automotive said today that it will buy the plant, located in Wilmington, Del., from Motors Liquidation Co. -- the old General Motors Corp. -- for $18 million. If Fisker's plans come to fruition, production at the plant could start in late 2012.

Another $175 million will be spent to refurbish and retool the factory over the next three years, Fisker said in a statement. The company has qualified for $528.7 million in federal loans from the Advanced Technology Vehicle Manufacturing program.

Fisker plans to build a mid-sized plug-in hybrid family sedan that will sell for $39,900 after federal tax credits. The company plans to sell between 75,000 and 100,000 units per year, with about 50 percent to be exported.

But a lot has to go right before that can happen.

The company has to hire and retrain a work force; design, develop and certify the car; and establish a supply base. So far, Fisker has sold only a few hand-built luxury cars based on BMW underpinnings. Its first higher-volume car, the $87,000 Karma, is slated to start production in Finland next year.

CEO Henrik Fisker said Wilmington was selected for its production capacity, world-class paint facilities, access to modern shipping ports, rail lines and skilled work force.

GM built the plant in 1947. Over the years it has built more than 8.5 million cars. Production capacity is 300,000 per year.

The Fisker press release includes a statement from the plant's union, UAW Local 435.

"It gives me great pride to give UAW Local 435 workers the opportunity to partner with Fisker Automotive to create a greener America by building a plug-in hybrid car that will compete globally," Gary Casteel, the UAW director responsible for the plant, said in the Fisker statement.

According to its Web site, the local represents about 500 employees and 2,300 retirees at the plant.

Fisker was created in 2007 and utilizes the powertrain capabilities of Quantum Fuel Systems Technologies Worldwide Inc.

U.S. and overseas manufacturers are racing to deliver the first plug-in hybrids, which are viewed as the best near-term technology for transforming the American auto market.

Car buyers are demanding more fuel efficiency with gasoline prices high. The Obama administration and Congress, trying to reduce U.S. dependence on imported oil, are boosting funding for battery research and electric car production.

The auto industry is a cornerstone of the administration's efforts to promote and support "Green Economy" manufacturing, and the Delaware facility is the closet car plant to Washington.

"We understood a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation," said Vice President Joe Biden, who joined Fisker at the plant to make the announcement.

Biden represented Delaware in the U.S. Senate before becoming vice president.

Ford Motor Co., electric car maker Tesla Motors and Nissan Motors have also received government loans for building advanced technology vehicles. GM and Chrysler have applied for funding.

The sale of the Wilmington facility is subject to a routine evaluation period and bankruptcy court approval. Proceeds will be placed in the GM estate, according to the AlixPartners restructuring firm.

"This is a big day for Wilmington, a big day for the creditors in this case and, I believe, a good day for America," said Al Koch, the vice chairman of AlixPartners and Motors Liquidation CEO.

Motors Liquidation has about 200 properties, many of which are plant sites or landfills.

Many of the properties could be repurposed, Koch told Reuters previously, with some former plant sites possibly becoming transportation hubs or unused land donated to nature conservancies.

It was unclear if the proceeds from the Boxwood Road sale would be earmarked for creditors or for the U.S. government, which extended some $50 billion of bailout and bankruptcy funding to GM this year.

ABOUT FISKER AUTOMOTIVE, INC.

Fisker Automotive is a privately owned, premium American car company with a vision to lead the automotive industry into the next-generation of automobiles with high-end design expertise and eco-friendly powertrain technology. Global headquarters are in Irvine, California, USA.

The company was created in 2007 to leverage the design capabilities of Fisker Coachbuild, LLC, founded by auto design veterans Henrik Fisker and Bernhard Koehler, and the PHEV powertrain capabilities of Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ-QTWW), a major Tier 1 supplier of clean vehicle technologies to the automotive OEMs. Previously, Fisker, CEO, was design director for Aston Martin and president and CEO of BMW's DesignworksUSA. Koehler, COO, led operations for Ford's Global Advanced Design Studio and created concept cars for Aston Martin, MINI and BMW.

ABOUT WILMINGTON ASSEMBLY

The Wilmington Assembly plant was built by General Motors in1947. Over the years it has been expanded to 3.2 million square feet on 142 acres of land. It includes an on-site powerhouse and waste water treatment facility. More than 8.5 million cars have been manufactured there, including the Pontiac Streamliner, original Chevrolet Impala, 1997-1999 Chevrolet Malibu, Saturn L-Series and the Pontiac Solstice/Saturn Sky/Opel GT roadsters. Production capacity is 300,000 cars per year. The plant and its workforce have received many awards for excellence in quality, production and safety.
 
ABOUT ALIXPARTNERS

AlixPartners is a leading global business-advisory firm offering services across four main disciplines – operational performance improvement and strategic consulting, financial restructuring and bankruptcy reorganization, litigation consulting and financial advisory services. The firm's expertise is in helping clients anticipate, evaluate and successfully resolve urgent, high-impact business challenges in an increasingly complex legal, regulatory and economic landscape. Drawing on the experience of more than 900 employees from 14 offices across North America, Europe and Asia, the firm commits small teams of seasoned professionals to deliver results when it really matters. For more information, visit www.alixpartners.com.
 
Richard Truett
Automotive News