Fisker Loses Access to DOE Loan, Lays Off Delaware Factory Employees
February 7, 2012 11:31 AM
comment(s) - last by
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
, 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,
, 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.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
The line about DOE seeming to be more cautious
2/8/2012 5:18:20 PM
is complete BS. If the DOE blocked the loan in May 2011, how is it that they could be being more cautious if Solyndra, Beacon, and Ener1 happened in late 2011 and even last month? I'm as frustrated as the next person about the government handing out money to companies that are now failing left and right, but this isn't about that. I mean can you honestly not keep up with a timeline that you just laid out a paragraph or two ago?
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
Indiana Think City EV Plant Fails to Produce, Sits Stagnant
February 3, 2012, 9:14 AM
Battery Maker EnerDel/Ener1 Received $118M DOE Grant, Now Filing for Bankruptcy
January 27, 2012, 10:01 AM
Fisker Recalls More Than 200 Karma Plug-In Hybrids Over Battery Concerns
December 30, 2011, 9:25 AM
Fisker Automotive EV Batteries Experience Safety Issue
December 26, 2011, 1:21 PM
Chevrolet Volt Fire Leads to NHTSA Investigation of Lithium Batteries
November 12, 2011, 1:36 AM
Ford, Toyota, and Universal Pictures Celebrate "Back to the Future Day' in Style
October 21, 2015, 4:19 PM
Consumer Reports Flexes Muscle, Hits Slumping Tesla Motors Stock
October 20, 2015, 4:13 PM
Debunked: Beneath the Lies, Nigerian "Pee Generator" Is Still Pissing Into the Wind
October 19, 2015, 7:53 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information