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
RE: Clause left out?
2/21/2013 1:33:18 PM
That's not what's happening to Fisker. They aren't bankrupt, at least not yet.
A123 did go bankrupt, but fetched $260 million. That's about twice the size of the drawn funds from their DOE loan. Either its going to be paid back with the proceeds of the puchase (which just got cleared by the Feds), or Wanxiang Group took ownership of the loan as part of the whole package.
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
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
Ford, Toyota, and Universal Pictures Celebrate "Back to the Future Day' in Style
October 21, 2015, 4:19 PM
Consumer Reports Flexes Muscle, Hits Slumping Tesla Motors Stock
October 20, 2015, 4:13 PM
Debunked: Beneath the Lies, Nigerian "Pee Generator" Is Still Pissing Into the Wind
October 19, 2015, 7:53 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information