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Fisker Karma  (Source: jalopnik.com)
A total of 26 employees were laid off

The U.S. Department of Energy (DOE) pulled the plug on a federal loan it provided to Fisker Automotive, forcing the automaker to stop work on a Delaware factory.

California-based Fisker Automotive, known for the $102,000 Karma plug-in and the Nina midsize sedan, received a total of $529 million in loans from DOE in April 2010. The loans were part of a program to progress development of high-tech vehicles, where Fisker received $169 million for Karma engineering and $359 million for Nina production. The loans were also meant to revamp a closed General Motors plant in Wilmington, Delaware for Fisker auto production. So far, Fisker has drawn down $193 million from its loans.

Fisker has been behind schedule on selling its first auto here in the U.S., and in May 2011, DOE blocked the loans previously provided to the automaker due to "unmet milestones." According to Damien LaVera, DOE only allows Fisker to use the loan if the auto company upholds its end of the deal and shows results. However, Fisker has been a little behind.

The lack of access to loans has affected work on the Delaware factory. In fact, work on the auto factory has now been halted, and 26 people were laid off.

"It's been frustrating that Fisker and the Department of Energy weren't able to come to terms on the revisions to the loan in time to avoid this," said Brian Selander, a spokesman for Delaware Governor Jack Markell. "I'd say the project is on hold while the two sides try to get things sorted out."

DOE seems to be a bit more cautious of who it provides its financial offerings to after the series of alternative energy failures through 2011 and 2012. In September 2011, Silicon Valley-based solar panel company Solyndra filed for bankruptcy after receiving a $535 million loan from DOE in 2009. Government officials reportedly warned the administration about Solyndra's viability back at that time, but these warnings were set aside to meet political deadlines.

In November 2011, Beacon Power, a company that creates flywheels to store power and increase grid efficiency by preventing blackouts, filed for bankruptcy after receiving a $43 million loan guarantee from DOE in August 2010.

Just last month, auto electric battery maker Ener1, whose EnerDel subsidiary received a $118.5 million DOE grant in August 2009, filed for bankruptcy.

Electric vehicles haven't had a great year, either. Last year, General Motors' Chevrolet Volt was heavily criticized after three Volts sparked or caught fire in a series of side-impact crash tests conducted by the National Highway Traffic Safety Administration (NHTSA). Fisker had some battery issues of its own as well back in December 2011, where over 200 Karma's were recalled.

Also, somewhat similar to Fisker's factory situation, an Indiana Think City EV plant has been sitting stagnant after failing to produce the Think City EVs, which are tiny two-seater EVs manufactured by Think Global.

Fisker CEO Henrik Fisker said the company sent 225 Karmas to dealers in December, with another 1,200 on the way.

Sources: The Wall Street Journal, BusinessWeek



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RE: In related news....
By Reclaimer77 on 2/7/2012 2:02:00 PM , Rating: 2
Okay you really have no clue what you're talking about. Bush allocated $16 billion of TARP funds for GM and Chrysler. But he also opened the door for Obama to then go ahead and pile another $60+ billion on top of that. There were other key differences as well. As Bush's solution was more of a "blank check", while Obama's Administration took a much more on-hands, and widely illegal, approach.

Are you trying to pin me in a corner where if I don't support bailouts, I'm FOR the wholesale slaughter of businesses? That's a morally bankrupt position.

If the role of our Government is to permanently reside over all business and decide who fails and who doesn't, there's a word for that, fascism.

quote:
GM got caught up in all the silly finance mess with all the other banks.


That wasn't the banks fault. GM failed because of bad financial policies. Failure to be competitive, and others reasons. Just lots of bad decisions in general.

Here's a good summary if you care:
http://www.dailyfinance.com/2009/05/31/after-101-y...

Basically when a company does all of this, they really SHOULD fail.


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