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Fisker's Founder Quits After Electric Automaker's Reported Talks With China's Geely To Secure Financing

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Fisker's hot Karma model - Photo credit: Wikipedia

The design guru behind Fisker Automotive, maker of the sleek electric Fisker Karma sports sedan, announced he was stepping down on Wednesday due to “major disagreements” with the company’s executive management, according to several reports.  Fisker Automotive had seen the Department of Energy freeze a special green-energy loan and was considering selling a majority stake to Chinese automaker Geely Automobile, in order to secure funds to develop its second vehicle, the Fisker Atlantic.

Henrik Fisker is quitting the Anaheim, California-based company he co-founded in 2007.  According to Automotive News, the company announced the executive chairman's resignation due to “several major disagreements [...] with the Fisker Automotive executive management on the business strategy.”  The company was not immediately available for comment.

UPDATE: In a statement sent to FORBES, Fisker Automotive confirmed Henrik Fisker's resignation, noting its "strategy has not changed" and that "Mr. Fisker's departure is not expected to impact the Company's pursuit of strategic partnerships and financing."

UPDATE 2: A spokesman for Fisker Automotive called FORBES noting the DoE loan had been frozen in 2011, suggesting a connection between Henrik Fisker's resignation and the loss of federal funding wasn't warranted.  The company didn't comment on supposed talks with China's Geely, which Republican Senators have expressed concerned about, and indicated any and all strategic options are on the table.

Chief executive Tony Posawatz, a former General Motors director who's had the top job since August, said he was made aware of Fisker’s decision Wednesday morning.  Speaking of the company, Posawatz noted “we are in the midst of some serious negotiating.”

Fisker Automotive makes sleek plug-in electric cars that rivals Elon Musk’s Teslas.  Henrik Fisker founded the company after stints at Ford, Aston Martin and BMW, where he helped develop the V8 Vantage and the Z8, both of which had prominent spots in James Bond films.  Fisker, an expert in design, founded the company with Bernhard Koehler, current chief operating officer of the company.

The electric car maker had been granted a $529 million federal Advanced Vehicle Technology Loan by the Department of Energy, of which about $193 million was borrowed, a Fisker press release stated.  The company said it has raised over $1.2 billion in private equity over the past few years, including $100 million from investors announced last September.

The special loan was frozen in February, though, as Fisker Automotive failed to meet certain targets set by the DoE, forcing the company to look for additional funds to develop and launch its second model, the Fisker Atlantic.  Among the possible bidders was China’s Geely, which already owns Swedish automaker Volvo, causing Republican Senators Grassley and Thune to express “reservations,” according to Trade the News.

Fisker Automotive had delivered nearly 1,500 Karmas according to its latest update, and expects to launch the model in China this May.  The Karma uses parts from Quantum Fuel Systems Technologies and A123 Systems, reports indicate.

Electric car makers have struggled with financing and profitability given the costs of developing new technology and difficulty achieving economies of scale.  While GM’s Chevy Volts benefit from the company’s massive production capacity, billionaire Elon Musk’s Tesla Motor has felt intense margin pressure.  While the stock has performed well over the past six months, and the company expects to deliver 20,000 Model S units this year, Tesla reported a fourth quarter loss amid declining margins.  The company did announce it expects to crank out a profit during the first quarter of 2013.  Late last year, Toyota pulled the plug on its iQ electric model.