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We've Seen This Movie Before

- April 5, 2013

With Today's Layoffs, It's Clear That Fisker Is Going The Way Of Solyndra

TODAY FISKER ANNOUNCED THAT THEY ARE LAYING OFF STAFF

Today, Fisker Automotive Announced That They Would Be Laying Off Employees, Including Its Public Relations Staff. "Fisker Automotive has laid off its public relations staff and other employees today, according to a source familiar with the company, another sign of deepening problems at the beleaguered electric car maker. No one is answering phones at the Anaheim, Calif., office this morning. The layoffs come on the heels of the high profile resignation of company founder and executive chairman Henrik Fisker, 49, last month over disagreements with the direction the company was taking in terms of its business strategy." (Alisa Priddle, "Start-Up Electric Car Maker Fisker Automotive Lays Off Public Relations Staff," Detroit Free Press, 4/5/13)

  • Fisker "Terminated Most Of Its Rank-And-File Employees," About 160 In Total. "Fisker Automotive, the struggling hybrid sports car maker, terminated most of its rank-and-file employees at a Friday morning meeting at its Anaheim, California, headquarters, according to a source who attended the meeting. About 160 employees are affected, the source said." ("Fisker Automotive Lays Off Most Rank-And-File Employees," Reuters, 4/5/13)

Despite Almost $200 Million In U.S. Taxpayer Money, Fisker Had Already Furloughed Its Entire U.S. Workforce And Manufactures 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)

A HIGH-PRICED PHOTO OP?

Fisker Was Hailed By The Obama Administration As The Next Chapter Of American Auto Manufacturing And Innovation

Fisker Planned To Manufacture Its High-End Vehicles "At A Former General Motors Plant In Wilmington, Del." "Plans to build Fisker vehicles at a former General Motors plant in Wilmington, Del., despite a groundbreaking in 2009, never came to fruition." (Alisa Priddle, "Start-Up Electric Car Maker Fisker Automotive Lays Off Public Relations Staff," The Detroit Free Press, 4/5/13)

In 2009, Biden Toured Fisker's Delaware Plant To Tout The Department Of Energy's Loan Program. "Thanks to a real commitment by this Administration, loans from the Department of Energy, the creativity of U.S. companies and the tenacity of great state partners like Delaware - we're on our way to helping America's auto industry reclaim its top position in the global market." (Vice President Joe Biden, Remarks At The Reopening Of The Former GM Boxwood Plant, The White House, 10/27/09)

  • Biden Attended The Re-Opening Of Fisker's Delaware Plant, Calling The Loan "Seed Money That Will Return Back To The American Consumer In Billions And Billions And Billions Of Dollars In Good, New Jobs." BIDEN: "This is seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs." (ABC News' "Nightline," 10/25/11)
  • Biden Hailed Fisker As "A New Chapter In The Automotive History Of The Country." BIDEN: "We understood a new chapter had to be written - a new chapter in which we strengthen American manufacturing by investing in innovation." ("Fisker Breathes New Life Into Idled GM Plant," United Auto Workers, 1/10)

FISKER IS FOLLOWING IN THE FOOTSTEPS OF ANOTHER FAILED OBAMA-BACKED COMPANY: SOLYNDRA

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)

  • According To ABC News, Fisker "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)

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 Would 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)

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