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.
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RE: Anyone need an extra billion?
6/27/2012 8:23:04 PM
No, that's part of the warped state of capitalism today, looking at stuff the other way around.
There will still be demand for food, even if people cannot spend money on it. When people cannot afford food, they will steal food. Because you need food to live.
Demand is not what people what, but what people need. You only demand stuff you need, you ASK for stuff you want. They might not need things to live, but they need it none the less. Something that brings convenience in a stressed life and thus frees up time for relaxation is very much needed, for instance. It's not going to kill you if you don't get it, but the need is real.
Get it through your head: Money isn't everything. In fact, money is NOTHING. thin air, even less then thin air, digital bits on a PC we've decided is the right one. It's not even a commodity, as it relies on the comodity it's traded against to actually have value. Money is like an instantly redeemable contract, nothing more.
Demand and Supply, however, are intrinsic to human nature. If my tummy demands food, i need to supply it with food.
RE: Anyone need an extra billion?
6/28/2012 8:25:18 AM
Demand is both for things you need and things you want.
The problem with America right now is too many people prioritize the things they want over the things they need. They go out and buy all the things they want, and then complain when they don't have enough money for the things they need.
Instead of going out and buying health insurance, they buy expensive cell phones, cars, TVs, etc. Instead of making sure they have the tools (education) to get a good job, they do the things they want. And then they or others (largely liberals) blame someone else for it.
Go drive around a poor neighborhood and tell me how many new or relatively new cars you see in driveways. Or cars with giant, expensive rims and massive stereos. I'm sure if you went in many of their homes, many would have nearly as nice things as someone who makes far more than they do. If not even nicer.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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