Two Republican Senators Ask Questions on Loans Granted to Fisker Automotive
June 27, 2012 1:21 PM
comment(s) - last by
Senators fear Fiskercould default on giant government loans
The United States government granted a number of loans to different high-tech startups in an attempt to kick start innovation and research into alternative fuel and power. Among the companies that received these loans were Fisker Automotive and Tesla Motors. Tesla Motors has been undeniably successful and
its Model S and made deliveries to the first buyers of the electric vehicle.
Fisker Automotive, however, hasn’t been as fruitful. The auto company has experienced issues with battery packs that had to be replaced, and a test vehicle loaned to Consumer Reports
“died” with just a few hundred miles on the odometer
As the recipient of a government loan, U.S. Senators Chuck Grassley R-Iowa and Senator John Thune, R-South Dakota are now questioning Energy Secretary Steven Chu about why a loan was made to Fisker Automotive considering it is partly owned by Qatar Investment Authority, a foreign-owned company.
The letter to Chu read in part, "Why should the American taxpayer have to accept the credit risk of a company owned by a foreign government?"
The Energy Department loaned Fisker Automotive $529 million and awarded battery supplier A123 $249 million in grants. A Fisker spokesperson responded by stating that the company sold more than 1,000 cars globally and generated more than $100 million in revenue. The spokesman also stated that Fisker was focused on creating American jobs.
Fisker has already
delays in producing its lower-cost family sedan due to setbacks with the battery packs for the plug-in hybrid vehicle. Battery supplier A123 is
replacing 600 battery packs
in Fisker Karma vehicles at a cost of $55 million after manufacturing flaws were found in the batteries.
The letter from the Senators also asked, "Will DOE consider A123's ongoing financial struggles before distributing the rest of the grant?"
A123 intends to hire as many as 400 new employees in the coming months, as was a condition of receiving the state and federal money. The company currently has about 780 workers in Michigan.
This article is over a month old, voting and posting comments is disabled
RE: Anyone need an extra billion?
6/27/2012 4:00:22 PM
Thank you John Keynes. You have to spend money to make money right? Thinking like yours is why we have 17 trillion in debt. But then again most of the Keynesian's won't acknowledge the flaws in their economic model. Like the government isn't very good at setting market priorities. And when the government is running a deficit, more spending equals more debt. especially in the long term. You want people to have more money? Lower their taxes. Taxes are what it costs a person to work. But of course you can't lower taxes because the government needs to waste more money buying favor. Or doing stupid things like supporting ethanol. If the government would require less, we would all have more. But most of you don't understand that. You want the government to do more so that you have to do less, which requires more resources from you in the long run.
You can balance the budget AND create jobs. But you can't do it by increasing spending when your income has decreased.
"This is about the Internet. Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
Tesla Model S Arrives Ahead of Schedule, Stock Surges
May 10, 2012, 10:01 PM
A123 Systems to Replace Faulty Fisker Karma EV Batteries for $55 Million
March 27, 2012, 11:56 AM
Fisker Recalls More Than 200 Karma Plug-In Hybrids Over Battery Concerns
December 30, 2011, 9:25 AM
Tesla’s Elon Musk Says that Fully Autonomous Vehicles Are Still at Least 5 Years Away
September 19, 2014, 9:48 AM
Quick Note: Kia Soul EV Priced from $33,700
September 11, 2014, 5:32 PM
Production Infiniti LE Electric Sedan Leaked in Patent Drawings
September 9, 2014, 10:32 AM
"Decepticon" Driver Triumphs Over Cops in Massachusetts Court
September 5, 2014, 12:07 PM
Tesla Motors Confirms Nevada Gigafactory Deal, Will Receive $1.25B in Tax Breaks
September 4, 2014, 8:24 PM
Mazda Unveils the 2016 MX-5 Miata, Drops 220 Pounds and 3" in Length
September 3, 2014, 8:59 PM
Most Popular Articles
HTC Preps Nexus 9 With Nvidia K1 64-Bit "Denver" SoC, Android L Onboard
September 10, 2014, 10:21 PM
Quick Note: Buy an Xbox One Sept 7-13, Get a Free Game
September 4, 2014, 10:42 AM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
T-Mobile Launches Un-carrier 7.0, Beefs Up Wi-Fi Calling
September 11, 2014, 2:56 PM
Latest Blog Posts
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information