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Fisker, Obama’s Next Solyndra?

- April 3, 2013

 

Despite $529 Million In Taxpayer Money, Justin Bieber, And Al Gore, Fisker Is On The Verge Of Bankruptcy

 

In 2011, Founder Henrik Fisker Promised U.S. Taxpayers That "They Need Not Worry" About The DOE Loan, And That Fisker Would "Absolutely Not" Be The Next Solyndra. "In a 2011 interview with ABC News, Henrik Fisker, the renowned Danish auto designer who founded the company, issued a promise to U.S. taxpayers that they had no reason to worry about the more than $500 million in federal funds the government was getting set to bet on the company. 'No, I don't think they need to worry about it,' Fisker said. When asked if Fisker might be the next Solyndra, he said, 'Absolutely not.'" (Matthew Mosk, "Is Fisker Headed For A Solyndra-Like Collapse," ABC News, 4/2/13)

DESPITE GOVERNMENT LARGESSE AND POLITICAL CONNECTIONS, FISKER IS EXPLORING BANKRUPTCY

According To ABC News, Fisker Has "Hired A Prominent Law Firm To Advise It On Possible Bankruptcy Proceedings." "Ormisher was responding to questions about reports last week that Fisker had hired a prominent law firm to advise it on possible bankruptcy proceedings." (Matthew Mosk, "Is Fisker Headed For A Solyndra-Like Collapse," ABC News, 4/2/13)

After Receiving Approval For "A $529 Million Loan From The U.S. Energy Department," Fisker Automotive Is "Headed Towards A Solyndra-Like Collapse." "As a major financial deadline looms, a green car company that was approved for a $529 million loan from the U.S. Energy Department is keeping quiet about whether it could be headed towards a Solyndra-like collapse, following reports the company may be preparing for bankruptcy." (Matthew Mosk, "Is Fisker Headed For A Solyndra-Like Collapse," ABC News, 4/2/13)

Fisker Was A "Politically-Connected" Company Backed By "A Powerhouse Venture Capital Firm Whose Partners Included Former Vice President Al Gore." "The loan to Fisker was part of a $1 billion bet the Energy Department made in two politically-connected California-based electric carmakers producing sporty -- and pricey -- cutting-edge autos. Fisker Automotive, backed by a powerhouse venture capital firm whose partners included former Vice President Al Gore, predicted it would eventually be churning out tens of thousands of electric sports sedans at the shuttered General Motors factory it bought in Delaware." (Matthew Mosk, "Is Fisker Headed For A Solyndra-Like Collapse," ABC News, 4/2/13)

Fisker Received The DOE Loan To Produce A "$97,000 Luxury Vehicle. "At the time, Fisker was already more than a year behind rolling out its $97,000 luxury vehicle bankrolled in part with DOE money." (Matthew Mosk, "Is Fisker Headed For A Solyndra-Like Collapse," ABC News, 4/2/13)

  • Fisker, Which Received "Hefty Support From The U.S. Energy Department," Produced "High-Priced" Electric Vehicles For "Such Celebs As Justin Bieber And Leonardo Dicaprio." "Fisker Automotive entered the electric car market with hefty support from the U.S. Energy Department and backing from such celebs as Justin Bieber and Leonardo DiCaprio, but the company and its high-priced Fisker Karma have continued to skid financially." (Matthew Mosk, "Is Fisker Headed For A Solyndra-Like Collapse,"ABC News, 4/2/13)

Fisker Has Already Furloughed Its Entire U.S. Workforce

Fisker Automotive, Which Has Not Made A Single Vehicle Since July 2012, Announced That It Will Furlough Its 200 Person U.S. Workforce. "Fisker Automotive, which has not made a vehicle since July, placed its U.S. workforce on furlough this week as part of its effort to keep costs low while it continues to search for a strategic partner, the U.S. automaker said on Wednesday. 'This is a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements,' Fisker, which has just over 200 U.S. employees, said in a statement." (Deepa Seetharaman, "Fisker Puts U.S. Workforce On Furlough This Week," Reuters, 3/27/13)

Despite $530 Million In U.S. Taxpayer Money, Fisker Furloughed Its Entire U.S. Workforce And Produces Its Vehicles In Finland. FOX BUSINESS NETWORK'S DENNIS KNEALE: "Yeah, it's a really bad sign. It means that Fisker likely will head into bankruptcy court to declare chapter 11 so that its creditors that it owes money to can't collect its debts. Well those creditors include especially American taxpayers. This company was approved for $530 million in federal loans. It took almost $200 million and it did it, it was going to create a thousand jobs in America. Well it turns out it doesn't make cars here, it makes $100,000 electric hot rods in Finland where it employs 500 people. It had 200 people in the U.S., and last week it laid off virtually all of them. Its first debt payment on that federally guaranteed loan is due in a few weeks, and now it's likely instead to go into bankruptcy court. You know 26 companies, green energy companies have gotten government loan guarantees through this one particular program and Fisker was in that. Three have gone bankrupt, we've got over $600 million in losses so far, that could easily double from my reckoning, you got that Solyndra debacle, right, with 535 million dollars down the drain." (Fox News' "On The Record," 4/3/13)

FISKER IS JUST ANOTHER IN A LONG LINE OF OBAMA'S GREEN ENERGY FAILURES

Solyndra

Solyndra, Obama's Poster-Child For "American Ingenuity And Dynamism," Declared Bankruptcy. "The California-based Solyndra, which employed more than 1,000 people, declared bankruptcy earlier this month. President Obama visited the company in May of 2010, saying it was a prime example of 'American ingenuity and dynamism.'" (Alexander Mooney, "White House Beats Back Claim It Pressured Loan To Now-Bankrupt Company." CNN, 9/14/11)

  • "Solyndra Was The Epitome Of What The Government Envisioned To Be Our Green Tech Future…" (David Louie, "Fremont Solar Panel Maker Solyndra Scales Back Expansion Plans," The Oakland Tribune, 11/4/10)

Solyndra Was Offered The First Recovery Act Loan Guarantee, Receiving $535 Million From Taxpayers In March 2009, And Went Bankrupt In August 2011. (Solyndra, "Solyndra Offered $535 Million Loan Guarantee By The U.S. Department Of Energy," Press Release, 3/20/09; Joe Stephens and Carol Leonnig, "House Republicans Step Up Solyndra Investigation," The Washington Post, 9/1/11; George Avalos, "Fremont Solar Tech Firm Solyndra To Shut Down, Lay Off 1,100 Workers," The San Jose Mercury News, 8/31/11)

In August 2011, Solyndra Announced That It Will File For Bankruptcy, "Immediately Laying Off 1,100 Employees." "Solyndra, a Fremont solar tech manufacturer, announced Wednesday it is suspending operations and immediately laying off 1,100 employees. The company said it will also file for bankruptcy." (George Avalos, "Fremont Solar Tech Firm Solyndra To Shut Down, Lay Off 1,100 Workers," The San Jose Mercury News, 8/31/11)

  • A Total Of 1,861 Workers Were Laid Off By Solyndra As It Went Bankrupt. "Since September 1, 2010 (impact date), an estimated 1,861 workers have been separated from the firm. This total includes an estimated 649 temporary workers as well as leased workers from West Valley, Aerotek, Oxford Global, GES and Lighthouse Management. Most of these separations occurred at the time of the shut-down of the Fremont, CA facility on August 31, 2011. An additional 85 workers are threatened with separation as the company's operations wind down." (Employment And Training Administration, "Investigative Report TA-W-80,410; Solyndra LLC," Department Of Labor, 9/12/11)

A123

A123 Systems, Backed By $250 Million In Taxpayer Funds, "Filed For Bankruptcy" And Was "Sold To A Chinese Auto-Parts Firm." "Another recipient, A123 Systems Inc., got about $250 million in federal funds for plants in Michigan. It filed for bankruptcy in October and its automotive assets have been sold to a Chinese auto-parts firm." (Ryan Tracy, "U.S. Funded Idle Time At Battery Factory," The Wall Street Journal, 2/13/13)

The Obama Administration Approved The Sale Of "Failed Battery Maker" A123 To "A Chinese Conglomerate" After Giving The Company $249 Million In Stimulus Funds. "A Chinese conglomerate has reportedly received the green light from the U.S. to buy Massachusetts green energy company A123, a failed battery maker that received an award of $249 million green energy stimulus tax dollars in August 2009." (Sharyl Attkisson, "Chinese Firm Gets OK To Buy Failed U.S. Battery Maker," CBS News, 1/29/13)

  • In 2011, A123 Systems Inc., A Lithium-Ion Battery Supplier Announced It Would Temporarily Lay Off 125 Employees Due To Lack Of Demand. "A123 Systems Inc. will reportedly lay off 125 of its Michigan employees. The lithium-ion battery supplier, which recently hired its 1,000th Michigan employee, says the temporary layoffs stem from a lack of demand from one of its biggest customers in California." (Michael Wayland, "A123 Systems Lays Off 125 Michigan Employees," MLive.com, 11/30/11)

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