Two U.S. Senators Worry Fisker Could be Sold to Chinese Firm
February 21, 2013 11:49 AM
comment(s) - last by
They don't want the automaker to end up like A123 Systems
After bankrupt battery company
A123 Systems was (mostly) acquired by a Chinese company
, two U.S. senators now worry that automaker Fisker Automotive will have the same fate.
Sens. Chuck Grassley (R-Iowa) and John Thune (R-South Dakota) have expressed concern that taxpayer dollars will support a company with foreign ownership if Fisker is acquired by a Chinese company.
"Senator Thune and I asked the Energy Department about potential foreign ownership of Fisker in June 2012. When we raised concerns about taxpayers supporting a company with foreign ownership, the Energy Department waved those concerns away," Grassley said. "Now, those concerns may soon become a reality. Like A123, this looks like another example of taxpayer dollars going to a failed experiment. Technology developed with American taxpayer subsidies should not be sold off to China. I hope there's at least some accountability at the Department of Energy, but given its track record, I'm not holding my breath."
It has been strongly suggested that two Chinese companies -- Geely Automotive and Dongfeng Motor Corp. -- are looking for a majority stake in Fisker. It has also been rumored that Fisker could move all of its auto production to China if it made a deal with a Chinese company.
A deal isn't expected to be made until next month at the earliest. Fisker made mention that it is considering offers from all over the world -- not just China.
received $529 million in U.S. Department of Energy (DOE) loans in April 2010. The loans were part of a program to progress development of high-tech vehicles, where Fisker received $169 million for Karma plug-in engineering and $359 million for Nina production. The loans were also meant to revamp a closed General Motors plant in Wilmington, Delaware for Fisker EV production.
However, Fisker fell a little behind on its production schedule, and in May 2011,
DOE froze the loans due to "unmet milestones."
Fisker had only drawn $193 million of it at that point.
In October 2012,
the House Oversight and Government Reform Committee
decided to look into
the original terms of
its loan to Fisker Automotive
, questioning whether DOE will step in to help the electric vehicle (EV) automaker if it goes bankrupt and investors are allowed to retrieve their money.
In December 2012, Fisker's battery maker A123 Systems was
Chinese firm Wanxiang Group
about $260 million. A123
filed for bankruptcy
in October 2012.
Earlier this month, Fisker said it hoped to
restart production of its Karma plug-in
"fairly soon" as it waits for
A123 to come out of this bankruptcy situation.
The Detroit News
This article is over a month old, voting and posting comments is disabled
Isn't this what Republicans want?
2/21/2013 12:48:36 PM
A purchase of the company takes ownership of its liabilities, too. Unless the parent company goes bankrupt (highly unlikely because if they were near such a situation I don't see why they would use precious capital to pay off Fisker owners), they're going to pay off the loans.
Can't have it both ways. If you're against fostering local development through gov't loans, then you have no problem with a foreign bidder taking ownership.
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
Fisker Hopes to Restart Karma Production "Fairly Soon"
February 8, 2013, 12:24 PM
Battery Maker A123 Systems Acquired by Chinese Firm for $260M
December 10, 2012, 8:10 AM
Official: A123 Systems Files for Bankruptcy
October 16, 2012, 4:44 PM
Fisker Loses Access to DOE Loan, Lays Off Delaware Factory Employees
February 7, 2012, 11:31 AM
Tesla to Show Off EV Battery Swap Tech This Week
June 18, 2013, 10:34 AM
Ford Replaces Human Test Drivers with Robots for New Trucks
June 17, 2013, 10:03 AM
Bosch Selling $3,000 Wireless EV Charging System
June 14, 2013, 2:51 PM
GM CEO Announces Plans to Offer 4G Internet in Most 2015 Model Year Vehicles
June 14, 2013, 8:30 AM
New Jersey Bill Would Allow Cops to Search Your Cell Phone Messages, Calls After Crash
June 12, 2013, 4:30 PM
Ford Won't Upgrade New Focus Electric, Has Only Sold 1,400 Since '11 Launch
June 12, 2013, 3:54 PM
Most Popular Articles
Source: Don't Worry, NSA Spies on "99 Percent" of Americans' Locations, Call Records
June 14, 2013, 3:57 PM
Xbox Chief: If You Can't Get Online, Don't Buy an Xbox One
June 12, 2013, 9:57 AM
GigaHertz Wars 2.0? AMD Releases World's First 5.0 GHz FX Processor
June 11, 2013, 3:16 PM
Former Palm CEO: Selling Palm to HP was a Waste
June 12, 2013, 10:19 AM
Report: Apple to Release Larger iPhone Screens, Cheaper iPhone for $99
June 13, 2013, 9:41 AM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information