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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 recently launched 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?"

 Fisker Karma

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 announced 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. 

Source: Detroit News



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RE: Anyone need an extra billion?
By praktik on 6/28/2012 12:51:56 PM , Rating: 2
quote:
Because it never is. You don't think I've done it hundreds of times? The end result of two ideologies slamming against each other is always the same.


No I totally believe you've done it hundreds of times!

I just think there is tons of value in engaging with people who have completely different politics and outlooks - the most rewarding thing is finding those little bits of common ground, that you support a policy or idea the other person supports, but for completely different reasons! There is always more than one route to the same place and I think a policy is stronger for having competing political outlooks collaborate... rather than attempting to purify the landscape in an eternal battle with "the enemy", who obviously is not worth talking to cause well, they might think a particular Keynesian approach makes sense in some places and times....

Good luck with your Holy War! Remember, the price of freedom is eternal vigilance!


By Reclaimer77 on 6/28/2012 3:08:45 PM , Rating: 2
You misunderstand. Such discussions can be very enjoyable and revealing, IN person or at the very least over the phone. Over the Internet? Not so much.

quote:
Good luck with your Holy War! Remember, the price of freedom is eternal vigilance!


The more insulting, condescending remarks like this you make, the more hypocritical you appear. Because you're showing yourself as someone who would NOT be an enjoyable and open minded debater. You've accused me of McCarthyism and evoking Communism, which I've not done. You've portrayed me as some radical because of terminology you don't agree with, you've not once taken the high road or even given me the benefit of the doubt.


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference














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