Report: Each Karma Hybrid Sedan Built Cost Fisker $660,000
April 22, 2013 10:51 AM
comment(s) - last by
Fisker burned through $1.3B in private and government funding
The latest massive failure in the automotive industry to take a huge chunk of taxpayer money with it is Fisker. The automaker has been struggling and earlier this month
laid off 75% of its workers
. The company is also expected to
, seeking protection from its creditors.
Through all of its troubles, Fisker has only produced 2,500 of its Karma plug-in hybrid sedans (it hasn’t even begun production of the
smaller Atlantic plug-in hybrid sedan
). When you consider the amount of investor and U.S. taxpayer money given to Fisker in the form of government-backed loans, each of those 2,500 Karma electric vehicles cost $660,000 to produce compared to a retail price of $103,000.
Fisker had planned to spend part of the $529 million loan from the U.S. government to reopen an
old General Motors manufacturing factory in Delaware
. Despite the fact that Fisker had violated loan terms for the use of government-backed funds from being Energy Department, it was allowed to continue using the money according to a report released last week by a company called PrivCo.
“They made a mistake” in awarding the loan, PrivCo Chief Executive Officer Sam Hamadeh said of the Energy Department in an interview yesterday with Bloomberg. “Should they have fought this sooner? Obviously -- as soon as it became evident that they had begun to default.”
However, the Energy Department takes issue with the PrivCo report stating that the report contained errors. The Energy Department says that it halted Fisker's funding in late June of 2011 after the company had used about $193 million from the government loan.
Overall, Fisker spent $1.3 billion in venture capital and taxpayer money according to the report. Fisker is supposed to make the first repayment of $20.2 million on the loan granted from the Energy Department today. It remains unclear whether or not that will happen.
This article is over a month old, voting and posting comments is disabled
4/22/2013 1:07:22 PM
how's that chevy cruze working out for you?
4/22/2013 1:47:32 PM
If that's a case I suggest we petition the admins here to change his handle to FITCruze.
4/22/2013 5:50:37 PM
I in no way supported GM's or Chrysler's bail outs. But I have to live in the world that exists today. And I need a car to do that so I have to make the decision to buy the product that best fits my needs. Would the Cruze still exist if GM went bankrupt, restructed on its own, and came back out? Most likely. If it didn't, we wouldn't be having this conversation and I'd probably be driving a Focus which only gets slightly worse numbers.
We still lost billions of dollars with GM and Chryslers bailouts. A fact I haven't forgotten or forgiven.
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
Warming Evangelist Hansen Retires; Researchers Advise Panic Despite Flat Temps
April 11, 2013, 7:18 AM
Report: Google Fiber Coming to Austin, Texas
April 8, 2013, 9:36 AM
Fisker's Atlantic Plug-in Hybrid Sedan Leaked Ahead of This Week's Official Unveil
April 1, 2012, 6:16 PM
Fisker Buys Closed GM Plant to Produce New EV, Keeps Plant Unionized
October 27, 2009, 5:00 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
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
F-16 Schools Trillion-Dollar F-35 in Mock Combat, Fleeing is Best Option Pilot Admits
July 1, 2015, 5:53 PM
Apple Music: The Money, The Launch Hiccups, and the Nitty Gritty Details
June 30, 2015, 5:09 PM
Apple iOS 8.4 Rolls Out w/ Fix to Crash-Causing Unicode Text
June 30, 2015, 3:24 PM
Windows XP, Vista Users Can Get Free Windows 10 Upgrade Thanks to Loophole
June 23, 2015, 2:23 PM
Quick Note: Lumia 940 XL "Cityman" Phablet Gets Teased Via Tests
June 29, 2015, 5:51 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information