Fisker Automotive has raised $115.3 million in private equity funds for the development of its plug-in hybrid, the Karma. These monies make it possible for the company to access an additional $528.7 million in federal loans administered by the U.S. Department of Energy to support the project.

The loans are part of a $25-million fund Congress approved in 2007 as an incentive to automakers to develop vehicles that were fuel-efficient, including all-electric models. Although the Karma will hardly be a car for the people, with an expected price tag of $87,900, the company says it will pave the way for the production of a low-cost plug-in, the result of what Fisker executives call "Project Nina."

Henrik Fisker, the Danish design mogul behind Fisker Automotive and the company's CEO, said, "Raising $115 million in these times speaks volumes about the value of our business model and the vast potential of plug-in hybrids."

The Karma, which will be built with U.S. parts, will be assembled in Finland, with production slated to begin late in the year. The target annual production figure for the car is 15,000 units.

Project Nina, on the other hand, is said to envision a plug-in sedan that will be "family oriented" and sell for approximately $47,400 -- a price softened by the availability of a $7,500 federal tax credit. The company hopes to produce 100,000 of these cars on an annual basis.

Fisker, an ambitious start-up, will be facing competition in coming months from products including a plug-in Prius by Toyota, the Chevrolet Volt, a potential electric version of the Ford Focus, and the Nissan Leaf, which will go on sale this year for $30,000.