Print 52 comment(s) - last by Quadrillity.. on Jun 29 at 12:39 PM

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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Anyone need an extra billion?
By mindless1 on 6/29/2012 4:19:39 AM , Rating: 2
That's just nonsense the rich have fed you through media for years.

Any person should have enough pay to support themselves. Anything less is slavery.

Raises of minimum wage do not cost jobs, the demand for the goods and services exist either way and if a company can't survive paying a wage to workers, the OTHER company that can survive, does. A business needs X # of employees to get the work done and will push them to produce regardless of whether paying them $7/hr or $20/hr.

Online businesses also need to pay more than minimum wage, your example of competing with retail stores is pointless as they will always have higher overhead, will only compete through superior service but how do you offer superior service? By paying a higher wage so you attract quality, skilled people.

Businesses are not harmed, there is still competition because everywhere the minimum goes up.

All raising the minimum wage really does is decrease profits for the rich but you have been brainwashed to believe otherwise. Inflation cannot rise in tune with minimum rate increases, it is impossible as this creates an additional consumer base that PAYS FOR MORE goods and services, AND GETS PEOPLE OFF WELFARE.

Don't believe the nonsense spread by the wealthy. Isn't it obvious enough that if they are against something it's because it benefits someone else at their expense?

We've tried it your way and there is now a greater disparity than ever between the poor and the wealthy with the middle class struggling harder than ever. Will the country have to collapse and revolt before you see the obviousness of the situation?

I can't agree about minimum wage varying by state. If people earn enough to support themselves then they can move to any state they like and pay the going rate for goods and services there. Choice instead of slavery.

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki