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Fisker Karma
This is the same program that funded Fisker Automotive

South Dakota's Republican senator wants to terminate the federal loan program that gave millions of dollars to Fisker Automotive -- an automaker that has failed to produce a car in over a year and is now missing loan payments to the U.S. Department of Energy (DOE). 

According to The Detroit News, Sen. John Thune (R-S.D.) wants to get rid of the $25 billion Advanced Technology Vehicle Manufacturing loan program due to failures like Fisker Automotive wasting taxpayer money. He has already proposed an amendment that would “permanently end the ATVM program and save taxpayers from paying for more of President Obama’s bad green-energy bets.”

Thune's amendment comes after the DOE said it would auction off Fisker Automotive's $168 million unpaid loan earlier this week. DOE plans to launch the auction in early October. 

Fisker Automotive is an auto startup that received $529 million in DOE loans back in April 2010. 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. It hasn't been able to build a car since July 2012, and started looking for a buyer so it doesn't have to claim bankruptcy.

But Fisker isn't the only auto company that failed after receiving money from the Advanced Technology Vehicle Manufacturing loan program. Vehicle Production Group LLC -- which is a Michigan-based startup building wheelchair-accessible compressed natural gas vehicles -- was awarded $50 million in loans back in March 2011, but has since halted production.

Senator John Thune

DOE sold its unpaid $50 million loan for Vehicle Production Group LLC to AM General for $3 million earlier this month. According to The Detroit News, taxpayers lost about $42 million on that sale.

The Advanced Technology Vehicle Manufacturing Program was created by Congress in 2007 in an effort to reach the goal of 1 million EVs on U.S. roads by 2015, but the program hasn't made a new loan since March 2011. This is mainly due to the fact that two of the five companies (Fisker and Vehicle Production Group) that received government loans stopped production. 

The Obama administration received a lot of flak for these failures, but the program wasn't all bad. The other three loans -- $5.9 billion to Ford, $1.4 billion to Nissan and $465 million to EV startup Tesla Motors -- proved to be successful. Tesla even managed to pay its full sum back nine years early, which was a great feat for a startup. 

U.S. Energy Secretary Ernest Moniz said last month that the Obama administration is interested in reviving the $25 billion Advanced Technology Vehicle Manufacturing Program. He noted that it plans to draw a new round of loan requests (but is not actively considering any applications for retooling loans) and reexamine its lending criteria in order to avoid problems it encountered in the past. 

Source: The Detroit News

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F-35 $300B
By Hector2 on 9/19/2013 11:51:34 AM , Rating: 2
Let's go right to the center of the pork --- the waste of $300B for the F-35 that even the military doesn't want. The only ones who want this are Congress to ensure their state gets their really fat pork.

There are a lot of things we'd be better off spending $300B on than these.

RE: F-35 $300B
By Jeffk464 on 9/19/2013 12:26:04 PM , Rating: 3
Yup, Congress is spending like we are still in the cold war.

RE: F-35 $300B
By toffty on 9/19/2013 2:02:06 PM , Rating: 3
Agree completely. Less money on war and more money at home.

RE: F-35 $300B
By M'n'M on 9/19/2013 5:47:00 PM , Rating: 2
Be a little be careful though. All those soldiers coming home will want jobs. Will yours be one of them ? Will your employer, will all the cheap labor suddenly available, be as willing to give you a raise or pay a little more for your health insurance ? And don't forget that US defense contractors must employee US citizens so those $$ spent on defense are coming here to the US, not to China for cheap TVs. Sales of aircraft and other defense goods to foreign countries means they are paying for some the wages paid to the factory worker here in the US.

So yes, cut down on the unnecessary spending but be careful how an how fast you do it. You may not like all the unintended consequences.

BTW just when would you think about replacing the F-15 and F-18s with a newer design ? Would you wait like we have for the B-52 ?

“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads

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