On Tuesday, September 22, 2009, the Obama administration announced it will award loans of more than $500 million to Fisker Automotive Inc. for the development of two plug--in hybrids.

The funds, taken from a $25-billion Department of Energy program earmarked for alternative vehicle development will serve to either create or save some 5,000 jobs at Fisker and the companies that supply parts to it.

Energy Secretary Steven Chu said the $528.7 million low-interest loan, "...is another critical step in making sure we are positioned to compete for the clean-energy jobs of the future." Other automakers and suppliers have already received more than $8 billion from the same funds.

According to Fisker, $169.3 million of the loan will go to the completion and production of the Karma, a plug-in hybrid sedan rumored to cost $87,900. Although the car itself will be built in Finland, 65% of its parts will originate with suppliers in the United States.

The majority of the funds, however, will go to Project Nina, which will produce a "family-oriented, user-friendly" plug-in that will be built in America and offered to consumers for approximately $47,400. Fisker has a goal of selling 75,000 to 100,000 of these cars annually beginning in 2012.

Henrik Fisker, chief executive for Fisker automotive said, "This conditional loan represents a significant step in America's future..." that will "...help restore the U.S. as an auto industry leader."