Contribute
Connect with the GOP:

research

More Failures From Obama’s Green Energy Loan Program

- March 28, 2013

Despite Receiving Millions Of Dollars Through Taxpayer Support, Fisker Automotive Is "Exploring" Bankruptcy And Will Furlough Its 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)

  • In 2009, Fisker Was Awarded $529 Million From The Obama Administration's Department Of Energy Loan Program. "The company was founded in 2007 and drummed up about $1.2 billion in private financing. In 2009, Fisker also won a $529 million federal loan as part of an Obama administration program to spur advanced vehicle development." (Deepa Seetharaman, "Fisker Puts U.S. Workforce On Furlough This Week," Reuters, 3/27/13)

Fisker Said That It Is "Exploring" Bankruptcy Options Ahead Of An Impending Loan Payment To The Department Of Energy. "Fisker Automotive Inc., the struggling battery-powered sports cars manufacturer, is exploring a possible bankruptcy-protection filing if efforts to find a buyer or strategic partner fail before an April loan payment comes due, said people familiar with the matter. Fisker has hired restructuring lawyers at Kirkland & Ellis LLP to prepare for the possible bankruptcy filing, the people said, though no final decisions have been made." (Emily Glazer, Sharon Terlep, and Mike Ramsey, "Fisker Explores Court Protection," The Wall Street Journal, 3/28/13)

Fisker's "Chief Battery Supplier" Was The Now Bankrupt, Chinese-Owned, Taxpayer-Funded A123 Systems. "But Fisker's delay in bringing the Karma to market prompted the DOE to freeze the loan, which Fisker was relying on to pay for Atlantic. The resulting cash crunch was exacerbated by the bankruptcy of its chief battery supplier, A123 Systems, now owned by Wanxiang Group, China's largest auto parts maker." (Deepa Seetharaman, "Fisker Puts U.S. Workforce On Furlough This Week," Reuters, 3/27/13)

A123 Systems Is Rebranding Itself As . . . B456 Systems

Chinese Owned, Taxpayer-Backed Firm A123 Systems Changed Its Name To B456 Systems. "After bankruptcy, a buyout by a Chinese firm, and more than a hundred million dollars in taxpayer money, the lithium-ion battery maker A123 Systems, Inc., is getting a new name: B456 Systems, Inc." ("Embattled DOE-Grant Recipient Changes Name From A123 To B456," Washington Free Beacon, 3/28/13)

  • The Bankrupt A123 Systems Received $249 Million Of Taxpayer Money From Obama's Department Of Energy Loan Program. "The Department of Energy awarded A123 a $249 million grant in 2009, of which the battery maker had received $133 million when it filed for bankruptcy. The effects of the bankruptcy extended beyond the company. A123 was the battery provider for DOE-loan recipient Fisker Automotive, which ceased production last year." ("Embattled DOE-Grant Recipient Changes Name From A123 To B456," Washington Free Beacon, 3/28/13)

Previous post

Obama By The Numbers

Next post

How Convenient… Menendez Donor Reveals Lobbying Effort Four Years Later
Republican National Committee

Connect With Us

Republican National Committee

Follow GOP

Chairman Reince Priebus

News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com