Reminder: Fisker about to go all Solyndra with $200 million of your money

posted at 8:01 pm on March 19, 2013 by Mary Katharine Ham

Our federal government sure knows how to pick ‘em.

Fisker is an electric car company, founded in 2007, which holds the dubious distinction of producing the only car to ever break down during its Consumer Reports test drive. It was supposed to be an American leader in new technologies, with a revamped factory in Delaware and all the jobs that come with it. It ended up producing cars in Finland— cars that caught on fire and konked out due to the company’s use of faulty batteries from another taxpayer-funded company, A123. Facing recalls and possible bankruptcy, Fisker’s CEO Henrik Fisker stepped down while the company searched for buyers. All this colossal failure could be chalked up to doing business in new technologies if it had been done with the $1 billion or so in private funding Fisker got. Sadly, the company also blew through $193 million from us, via the Department of Energy, which is now giving pause to the Chinese companies looking to buy it. Stimulus!

The Chinese automaker that was in talks to buy struggling Fisker Automotive has backed out, Reuters reports, leaving Fisker without its best bet for avoiding bankruptcy.

Geely, which owns Volvo and is one of China’s biggest car manufacturers, was reportedly on track to acquire Fisker, but dropped out of talks due to conditions that come with paying back the $193 million Fisker has borrowed from the United States Department of Energy.

For perspective, according to the National Venture Capitalists Association, the average VC fund (not loan, but fund) was $149 million in 2010.

Check out the foresight on this GM-turned-Fisker plant in Delaware, which was supposed to start production in 2012, but has been put on hold until 2014-15 (probably indefinitely), but not before we dropped $23 million on it!

$23 million of that was used to purchase and refurbish an old General Motors plant in Delaware, which is supposed to produce the Atlantic, Fisker’s high-volume model, and create about 2,500 American jobs — the crux of the DOE’s justification for making the loan.

A source familiar with the case told Reuters:

Those obligations are too complicated to handle and seem too risky. The plan’s footprint was too big. It would take a long, long time to fill up the plant with products and restore employment there.

According to Reuters’ sources, the resignation last week of Henrik Fisker, who co-founded the futuristic car company in 2007 and designed the Karma and Atlantic models, did not have an impact on Geely’s decision to back out of talks.

But don’t worry. If they go bankrupt, American taxpayers are first in line to get their money back, just like always happens with these crony bankruptcies in an Obama administration.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

They were at the auto show. Not a lot of interest.

gophergirl on March 19, 2013 at 8:02 PM

Crony clunkers.

TXUS on March 19, 2013 at 8:06 PM

But Dear Liar get re-elected, so that’s what matters.

rbj on March 19, 2013 at 8:12 PM

B-b-b-but! Bush did it too!

Lanceman on March 19, 2013 at 8:13 PM

I thought they made scissors.

Curtiss on March 19, 2013 at 8:17 PM

Fisker is an electric car company, founded in 2007, which holds the dubious distinction of producing the only car to ever break down during its Consumer Reports test drive.

These jalopies will be a showin up in pieces at tha Flea Market down at Hogs Head Creek by 2014 at the rate theys a goin.

….maybe we can get some pieces of that Californey Monorail the Chinese are gonna help them build.

If I sees any pieces I’m gonna use em to make a house fer the Pigs.

Yee haw, gimme some murr stimulus monies Merica!!!

PappyD61 on March 19, 2013 at 8:19 PM

Solyndra is people…’s money!!!

Flange on March 19, 2013 at 8:19 PM

http://homegrowed.files.wordpress.com/2010/10/img_4927.jpg

Curtesy of Fiskars (the scissor and dead car peoples).

I’m lookin ferward to its already.

PappyD61 on March 19, 2013 at 8:22 PM

i didn’t know barack was a Belieber?

renalin on March 19, 2013 at 8:29 PM

…so when is someone going to jail for ‘stealing’ the publics money?

KOOLAID2 on March 19, 2013 at 8:33 PM

Stimulus!!!111!!!

jnelchef on March 19, 2013 at 8:34 PM

Not to split hairs, but are we again fast and loose with money?

RE: “…Vice President Joseph Biden heralded the Energy Department’s $529 million loan to the start-up electric car company called Fisker…”

$200Mil was just the first tranche of money, followed later with another 1 or two. We’re in way deeper than the now “revised” $200Mil. I think this $200Mil was just for the factory in MD? And the rest went to their main offices in Finland for research and development?

riddick on March 19, 2013 at 8:43 PM

Mary Katharine, I was just finishing up my latest photoshop blog on all the money wasted on the 0′s green adventures. Its here if you care to have a look. I’ll have it complete in about a half hour. You get the sneek peek. ; ) In particular there is a Fisker image down towards the bottom of the page you should consider and are free to you if you are inclined to. Its the one with 0, the red pumps, you know to match the tie, and the plugged in Fisker. ; ) I will be putting the numbers on it and the top panoramic photo. Hope you enjoy.

Bmore on March 19, 2013 at 8:48 PM

you=use, sorry Mary Katharine.

Bmore on March 19, 2013 at 8:49 PM

As he asks for more money, who would hire the Obama clan to invest their money?

Tater Salad on March 19, 2013 at 8:56 PM

Because a $90,000 per copy hybrid car built in Finland are a sure return on investment during a global recession.

If memory serves, I do believe the high priest of the Church of Glowbull Warming (and former V.P.), Al Gore, plus John Doerr, who used to sit on President Barack Obama’s economic advisory board, are both invested in Fisker Automotive.

Odd how that works.

locomotivebreath1901 on March 19, 2013 at 8:56 PM

Geely, which owns Volvo and is one of China’s biggest car manufacturers, was reportedly on track to acquire Fisker, but dropped out of talks due to conditions that come with paying back the $193 million Fisker has borrowed from the United States Department of Energy.

Gee, why not encourage China proceed with the purchase, not to worry about the loan conditions – and make it $193 million less that we owe them.

See? We can have our debt paid-off in no time. /

Hill60 on March 19, 2013 at 8:59 PM

Please send info!

Wow. Over $23 million to prep the plant….How does one get these grants, again?

Actually, the Fisker is a really exotic looking vehicle. A Ferrari almost towers over it. I don’t know anyone limber enough to want a four door for dwarfs but they would have a lock on that market.

IlikedAUH2O on March 19, 2013 at 9:02 PM

MKH, if you were a ‘conservative’, you wouldn’t be worrying about this trivial stuff, you’d be shoving some more homosexual marriage and illegal immigrant love threads on us. WTF, woman – don’t you care?!??!1!?

Midas on March 19, 2013 at 9:07 PM

There, mostly all finished, just a few to add a bit later. ; )

Bmore on March 19, 2013 at 9:09 PM

There a new nom.

Bmore on March 19, 2013 at 9:14 PM

Had an iphone brick, would get pretty pissed if my car bricked. And you would be stupid to park that many batteries in your garage.

Go back and read some of the salivating syncophant reviews of this car published in the tyranny paper of record NYT. Pretty funny stuff. My hatchback would smoke this stupid hunk of crap.

tom daschle concerned on March 19, 2013 at 9:19 PM

Yeah but Leonardo Di Caprio has one. They have to be cool!

LeftCoastRight on March 19, 2013 at 9:26 PM

Lawsuit time.

FlaMurph on March 19, 2013 at 9:26 PM

Fiskered!

can_con on March 19, 2013 at 9:27 PM

Mary Katharine, I added one just for you. Its just like the one you used on your cover photo. Almost 0 difference. Dare ya. ; )

Bmore on March 19, 2013 at 9:36 PM

So how many Obama campaign bundlers get their investment money back first?

GarandFan on March 19, 2013 at 9:37 PM

Fisker cars are like hot liberal babes….nice to look at but nuthing going on in the inside…..

redguy on March 19, 2013 at 9:38 PM

Fiskered!

can_con on March 19, 2013 at 9:27 PM

Good one – or “Don’t fisk me bro!!!”

redguy on March 19, 2013 at 9:39 PM

Bmore on March 19, 2013 at 8:48 PM

Barack needs an A123 shadow.

unclesmrgol on March 19, 2013 at 9:42 PM

Bmore on March 19, 2013 at 8:48 PM

Awesome.

trigon on March 19, 2013 at 9:43 PM

Barack needs an A123 shadow.

unclesmrgol on March 19, 2013 at 9:42 PM

Good eye my friend, I wondered if anyone would catch that. Because you did I will fix it straight away. Nice job! ; )

Awesome.

trigon on March 19, 2013 at 9:43 PM

Thank you, I added one of Fiskers sexy ads. Just have to tweak the type. I’m not real good with type. Truth be known I have emailed it to a friend who is good with type to fix. ; )

Bmore on March 19, 2013 at 10:09 PM

Better. ; )

Bmore on March 19, 2013 at 10:31 PM

It just goes to show you what a little Bondo and a new coat of paint can do for a Yugo. And we paid for it.

greasywrench on March 19, 2013 at 11:08 PM

Better. ; )

Bmore on March 19, 2013 at 10:31 PM

You need to do one with him in the hoodie he wore in his History Channel cameo this weekend. That would be cool.

Lily on March 19, 2013 at 11:22 PM

Lily on March 19, 2013 at 11:22 PM

I’ll look into that Lily, you sure its not the one where he’s playing Satan? ; )

Bmore on March 20, 2013 at 12:14 AM

That $23 million wasted on the Delaware plant could have paid for White House tours for years. How pathetic! My sweetheart just traveled thru Miami returning to the US, and those wonderful folks at TSA were enacting a ‘work slow down’. All the while, one of the TSA union flakkies was loudly announcing the slow down was the fault of sequestration. Fortunately, almost none of the folks who missed flights because of this were low-information voters….they all KNEW the Obama administration was responsible for the games being played at the airport.

olesparkie on March 20, 2013 at 7:44 AM

This is how everything was in the soviet union. Even toasters broke and caught fire.

Our current economy is more explicity fascist than communist, but it’s all Marxism & central economic planning. This is ALWAYS the result.

This is why, after a century-long track record, it’s just not accurate to call Progressives stupid. They’re evil.

SAMinVA on March 20, 2013 at 7:54 AM

The fisking continues.

BobMbx on March 20, 2013 at 4:33 PM