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Fisker Karma

Fisker Atlantic
In the first four months of 2012, Fisker's Karma plug-in generated a revenue of over $100 million for just 1,000 Karmas sold

Fisker Automotive could build its next hybrid electric vehicle, the Atlantic, outside of the U.S. due to the automaker's lack of access to government funds.

Back in April 2010, California-based Fisker Automotive received a total of $529 million from the U.S. Department of Energy (DOE) for clean vehicles. The loans were part of a program to progress development of high-tech vehicles, where Fisker received $169 million for its $102,000 Karma plug-in and $359 million for the production of its Atlantic midsize sedan.

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, but there's a chance that the company may never see the rest of it.

In May 2011, DOE froze Fisker's loans because delivery of the Karma plug-in was delayed and ended up falling behind schedule. DOE said Fisker did not meet the milestones previously promised, and since then, Fisker has not been able to access the DOE loans.

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

However, Fisker CEO Henrik Fisker said earlier this year that the loss of DOE loans wasn't the end of the company's auto production in the U.S.

"We are a viable, self-funded company," said Fisker. "We can actually be self-sustainable on the Karma. But we have bigger aspirations."

Despite Fisker's enthusiasm, the unfortunate realization may be that the automaker may have to go elsewhere to build its next clean vehicle, the Atlantic, because of the lack of government funding.

According to Fisker spokesman Roger Ormisher, Fisker's loss of government loans will force the automaker to look into other building locations for the Atlantic. However, the company still hopes that the Delaware plant can be used somehow and that government funding will be returned.

"If Fisker no longer gets government monies, then obviously we are in a place where other options are open to us and have to be considered from a business perspective," said Ormisher. "However, given the work that we have done at the plant in Delaware and the fact that we own it, it is still our primary option to consider."

DOE may be giving Fisker a hard time when it comes to past Karma issues, but recent reports show that Fisker is certainly doing something right. In the first four months of 2012, Fisker's Karma plug-in generated a revenue of over $100 million for just 1,000 Karmas sold.

Source: ABC News

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RE: Handout BS!!
By amanojaku on 6/1/2012 7:42:58 PM , Rating: 2
And? Then 99% new of buissnisses should not even start.
Agreed. Or, they should at least rewrite their business plans to be more conservative. Neither Henry Ford nor Thomas Edison had government loans. They sought private investors, and started with their own money, then the money of friends and family. When they had something worth selling they got the attention of rich investors.
Well in case of corrupt and politically driven banks that don’t help new businesses, government should give out loans like last hope but government is the same corrupt. Only in their case if someone go bankrupt of their loans, lost money pay tax payers and in case of banks at least bigger ones, guess what, money pays tax payers, only indirectly.
The government's job is to govern. It is a bank, venture capitalist, or other financial institution that provides loans. The government cannot, and should not, be all things for all people.
Remember, Donald Trump was not recognized when he was indebted, only in short industry circles. He was recognized later, when he made fortune with help of banks of course.
Are you serious? Your original statement was this:
Are banks refusing to grant loans to some companies but give to others and more that they need? Think Donald Trump and his debt of 3.5 billion and he was still was getting helped from the banks, who’s he?
Your whole post was a complaint that some people get loans when other people don't. The keys here are FAME and MONEY. Donald Trump has a better chance of eliminating $3.5B in debt than you have at eliminating $100K. Why? Because people will give famous, wealthy people money, even if they are no longer famous or wealthy. Trump is a putz, but you'd have to be as untouchable as OJ Simpson to go broke and stay broke.

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