The Daily Mail
written by Don Surber
Sunday January 1, 2012
Crony capitalism not only is a pain in the national wallet, but products from crony capitalists pose a physical danger. Fisker Automotive — fronted by Democratic eco-millionaire Al Gore — received a half-billion federal “loan” 2 years ago to make luxury electric cars.
Not only was this a sweetheart from the Obama administration, but the deal financed the manufacture of unsafe electric lemons.
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Politico
written by Byron Tau
Monday February 6, 2012
In another setback for President Obama's clean energy loan programs, the recipient of more than a half-billion dollars in federal loans is laying off workers at their Delaware and California operations.
Delaware's News Journal reports that Fisker Automotive, a California-based electric car start-up company, is laying off an undisclosed number of staff to try to reserve enough capital in order to qualify for more federal help from the Department of Energy, according to a Delaware state development official.
"They're trying to preserve the cash that they have," said Alan Levin told the News Journal. "And unfortunately, until they meet the milestone that DOE continues to set … they're not able to access the additional capital that they need."
The company also came under fire last year for taking federal loans while producing cars in Finland. Company officials told ABC News at the time that "there was no contract manufacturer in the U.S. that could actually produce our vehicle." The company was working on reopening a shuttered General Motors plant in Wilmington to produce vehicles — an effort that top Obama administration officials lauded.
“While some wanted to write off America’s auto industry, we said no. We knew that we needed to do something different – in Delaware and all across the nation,” Vice President Joe Biden said about Fisker in Delaware in 2009. “We understood a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation. Thanks to a real commitment by this Administration, loans from the Department of Energy, the creativity of U.S. companies and the tenacity of great state partners like Delaware – we’re on our way to helping America’s auto industry reclaim its top position in the global market.”
“This is proof positive that our efforts to create new jobs, invest in a clean energy economy and reduce carbon pollution are working,” said Energy Secretary Steven Chu. “We are putting Americans back to work and reigniting a new Industrial Revolution that is paramount for the economic success of this country.”
The company received $529 million in loans to produce two lines of plug-in hybrid cars.
“Our loan guarantees have strict conditions in place to protect taxpayers. The Department only allows the loan to be disbursed as the company meets certain milestones and demonstrates results. As has been widely reported, Fisker has experienced some delays in its sales and production schedule -- which is common for start-ups. As Fisker works through those issues and incorporates lessons learned from the production of the Karma, the Department is working with Fisker to review a revised business plan and determine the best path forward so the company can meet its benchmarks, produce cars and employ workers here in America," DOE spokesman Damien LaVera said in a statement.
CORRECTION: An earlier version of this post mistakenly referred to loan guarantees rather than direct loans.
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