DOE Ends Auction for $168 Million Fisker Loan
October 18, 2013 9:54 AM
comment(s) - last by
Winner hasn't been announced nor has the size of the loss for taxpayers
The Energy Department has been conducting an auction seeking bidders for the $168 million of the $528 million loan originally given to Fisker Automotive before it went belly up. While the auction has ended, the energy Department hasn't officially announced who won the auction.
The auction was conducted last Friday including opening bids from an unknown number of qualified bidders. The federal government is evaluating all of the bids in an attempt to find one that is in the best interests of the taxpayers. Once the final bidder is chosen the remaining negotiations having to do with the sale will take place.
Fisker was originally granted a $528 million loan from the $25 billion Advanced Vehicle Technology Manufacturing loan program instituted by the Obama administration. Fisker went on to lose roughly $35,000 on each Karma it sold, and when the company
failed to make a $10 million payment
to the Department of Energy in April of this year, the government seized the company's reserve account and recouped some of that original loan amount.
Despite the high-profile failures of automakers under the government loan plan, the
Obama administration is looking to start
the controversial Advanced Vehicle Technology Manufacturing loan program up again.
The executive director of the Energy Department loan program office Peter W Davidson said last month, "After exhausting any realistic possibility for a sale that might have protected our entire investment, the department announced today that we are auctioning the remainder of Fisker’s loan obligation, offering the best possible recovery for the taxpayer."
This article is over a month old, voting and posting comments is disabled
10/19/2013 8:58:34 AM
Notice how those three companies were given billions, while most received a few million? Gee I wonder why they're still in business?
Failure, success, who cares? The point is every single dollar put into these companies is a waste. Regardless of the results.
10/19/2013 2:47:48 PM
Those dollar amounts are loan guarantees, aren't they?
A loan guarantee is not money received from the federal government. It's the government telling the bank it'll pay back the loan if the company fails to pay it back. In other words, the "company" only received federal money if it goes bankrupt (the money they used up from the loan came from the fed's coffers instead of the bank's).
If the company manages to stay in business long enough to pay back the loans, then it won't have received any federal money. It's actually one of the more common-sense type of subsidies - it costs the government less if they provide loan guarantees to companies which don't go bankrupt.
10/21/2013 1:53:24 PM
A loan guarantee is not money received from the federal government.
Not going to nit pick over verbiage since they all "received" money in the form of loans. But I'm sure a macro economist would agree with you since you're looking at the big picture. But I would emphatically disagree that we couldn't have done better. So my concern with it is that it seems they hand out these loans with too few strings attached. Minimal liability and protection for tax dollars - remember this isn't just the government spending their money, it's the government spending *our* money. Seeing the failure rates, I am not surprised anyone could confuse these loan guarantees with VC funding, because to me it looks like a guise.
I would personally find different ways to kick start alternative energies, or at least significantly modified.
And yes, absolutely eliminate the subsidies for big oil while you're at it to even the playing field.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Obama Admin Looks to Restore $25B Advanced Technology Vehicle Loan Program
August 27, 2013, 12:33 PM
Fisker Misses $10 Million Payment to DOE as Feds Seize Reserve Account
April 23, 2013, 9:49 AM
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
Quick Note: GM Teases Next Generation Chevrolet Volt
November 20, 2014, 3:26 PM
Most Popular Articles
America's Largest Cable Company, Comcast, Sees Internet Subscriptions Pass TV
May 4, 2015, 2:46 PM
Can id Software's Doom Find Its Way Out of a 7+ Year Development Hell?
May 19, 2015, 7:38 PM
Oculus Rift Confirms "Pause" in OS X, Linux Development, Some Devs are Mad
May 18, 2015, 11:36 PM
The Pirate Bay Loses Its Iconic Swedish Dot SE Domains
May 20, 2015, 6:31 PM
In-Depth: Apple's ~$1B Court Victory Over Samsung to be Cut up to a Third
May 18, 2015, 9:20 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