BEIJING/DETROIT March 28 Chinese state-owned
carmaker Dongfeng Motor Group will not pursue a bid
for a stake in troubled U.S. electric car startup Fisker
Automotive because it would be too difficult to move production
to China, according to three sources familiar with the matter.
Dongfeng's decision comes shortly after another Chinese auto
maker, Zhejiang Geely Holding Group, also decided not
to bid for Fisker, and appears to leave the U.S. company without
Two of the sources said it would be almost impossible to
move production of Fisker cars to China because of Fisker's
obligations with the American Department of Energy (DOE), which
has granted Fisker a $529 million loan.
The loan was extended for Fisker to produce cars at a plant
in Delaware previously owned by General Motors Co.
"In the end, what mattered to Dongfeng was being able to
produce Fisker cars in China," one of the sources said.
"Dongfeng was interested in moving production of Fisker
products from the U.S. to China, and it became apparent over
time that that could not have been done with this deal."