Fisker captures US political prestige, slaps GM in the face

It wasn't always political, but with the utter collapse and bankruptcy of GM and Chrysler, a new level of government involvement is being established by the Obama administration. The government is not only getting its hands dirty with restructuring corporations like GM, but also with promoting new car manufacturers. The message, which is being delivered from the top, is somewhat surprising, but certainly clear: it is out with the old and in with the new.

Vice President Joe Biden's recent promotion of Fisker Automotive is speaking volumes to the rest of the auto industry that plug-in hybrids are the way of the future, and it is Fisker Automotive, not GM that is going to get the hybrids on the road.

On Tuesday, Biden joined CEO of Fisker Automotive, Henrik Fisker, to announce the buyout of an old GM plant that is set to produce some 100,000 plug-in hybrid sedans. The plant will help manufacturer Fisker's line-up of hybrids and create an estimated 2,000 jobs. The plant will hopefully open up opportunities to past GM workers who who saw the doors close on them in July.

Certainly, the support is not all that alarming considering the government dealt out a hefty $528.7 million loan in September to help finish the Fisker Karma and get its other next generation hybrids rolling like the Fisker Nina which is supposed to be the more affordable version of the Karma.

As mentioned in a previous post, the next generation of Fisker hybrids are certainly going to enjoy quite a buzz with their sleek designs and impressive technologies that compete with the likes of the Volt and Tesla Roadster.

Although it is painful for some to watch, the reality is clear. GM and Chrysler are scaling down while the little guys with big plans to create energy efficient hybrids are buying big in hopes of capturing a market now primed for a hybrid revolution.

Not only have US automakers had to scale back production, but many of the US made gas guzzlers are now laying in piles of debris after a Cash for Clunkers program that overwhelmingly inherited Ford, GM, and Chrysler vehicles.

What does all this mean? In the next few years we could see a declining trend from the established automakers and an upward trend from the emerging automakers which altogether would create an even more diverse melting pot of hybrid brands on the road--certainly good for competition, but bad for the big 3.