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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 file bankruptcy, 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.

Fisker Karma

“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. 

Source: Bloomberg

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RE: Attempt to Create Jobs
By Crazyeyeskillah on 4/22/2013 2:28:39 PM , Rating: 2
I know a 'woman' who is annually pregnant because she knows as long as she is pregnant she will continue to get complete coverage (thousands spent medically) along with money and housing to take care of her growing family. She has had 3 children with 3 different fathers and is in progress with another. She has been doing this for roughly 6 years, all the while having full coverage of housing, food, medical with no lapses. Her partner never works and shares all the same benefits with her. She has not worked a day in 7 years and continues to make it clear that she never will.

The system has no penalty for such abuse and has instead turned a person with average ability and skills yet willing to learn/grow and be productive into someone who will potentially never be a productive member. I know this is off topic from Fisker, but this is the type of person that jobs need to be available for that can at least give them a standard of living that is the equivalent of welfare, which unfortunately seems to be closer to the 40-60k/yr expense level opposed to the 15-25k/yr level that a person like this has potential earnings of.

RE: Attempt to Create Jobs
By BRB29 on 4/22/2013 2:35:22 PM , Rating: 2
And they pay no tax :)

It's clear she is not willing to really do anything besides live off the government. There are plenty of baby factories in this country.

RE: Attempt to Create Jobs
By Mathos on 4/22/2013 11:00:57 PM , Rating: 2
Oh, don't get me wrong, not all companies are like that. But you have to take a look back at our history as a country and the way real big business has been in the past. But, there are quite a few that are. Look back at the history of Carnegie Steel, with the whole thing about Frick. You can't find it on a few wiki's. But none of them go into why the workers were striking to begin with.

Most anyone could learn pretty much anything, given the time and training. We all learn that way, that's what school is. I talk about the wellfare thing from first hand experience. Been a tax payer here in Texas since I moved here 7 years ago. When I lost my job, I couldn't get assistance at all. Plus it doesn't help that right now, I don't live in an area where there are a lot of jobs to be had.

Problem comes down to though. Whats your definition of a skilled worker? And as far as the protections go. All it takes is one nut, running on the platform of deregulation being elected, to tear down those protections. Be happy that Rick Perry didn't get elected. And a lot of companies, have been lobbying to make unionization, or collective bargaining illegal for a long time. And as the lower tax income of the states, and fed continue to become and increasing problem, the public education system will continue to decay, since they can't afford supplies, and teacher pay.

It is happening. I was watching it happen in cities like Flint, Pontiac, and Detroit Michigan. I'd say it's happening down here, but these people were already fairly ignorant to begin with.

And as far as the middle class goes, if that were the case, there weren't be 20million people unemployed, or severely under employed for their qualifications.

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