Exotic Plug-in Hybrid Car Nears Production

HELSINKI, Finland — Finnish car manufacturer Valmet Automotive said it has signed a preliminary deal with Fisker Automotive Inc. to build the U.S. company's plug-in hybrid sports car at its plant northwest of the Finnish capital.

The value of the deal was not disclosed.

Under the agreement, Valmet is set to start production of the Fisker Karma — the first production car of the Lake Forest, Calif.-based company — in the fourth quarter of 2009.

The first cars are expected to be delivered to North America in 2009 and to Europe in 2010.

Privately held Fisker said it plans to produce up to 15,000 cars a year at the Uusikaupunki plant, which employs around 800 staff and is located 149 miles northwest of Helsinki.

The four-seater Fisker Karma was unveiled at the North American International Auto Show in Detroit in January. The vehicle can go 50 miles with a single electricity charge. Its initial retail price is $80,000.

Valmet currently produces Boxster and Cayman models for sports car maker Porsche, but the German company announced in June it will switch production to Austria in 2012.

Valmet President Ilpo Korhonen said the deal with Fisker will ''open a new window'' for Valmet Automotive and is expected to generate several hundred new jobs when production of the Fisker Karma reaches its prime.

Valmet Automotive is a unit of the Helsinki-listed engineering and technology group Metso Corp.