Obama Green Loan Recipient Fisker Preps for Bankruptcy


#1

Obama Green Loan Recipient Fisker Preps for Bankruptcy
by Mike Flynn


2013/04/02

Fisker Automotive, a darling of the Obama Administration’s push for green energy and electric cars has hired the powerful Chicago-based Kirkland Ellis law firm to explore a potential bankruptcy filing, according to reports. The car company, which received a federal $529 million loan guarantee in 2009, furloughed 200 US workers at the end of March to conserve cash. Its bankruptcy would be the latest high-profile failure of Obama’s “green energy” loan program.

The Obama Administration, early in its first term, bet $1 billion in loans to two electric car companies, Fisker and Tesla. Fisker is backed by a venture capital fund, where Al Gore is a partner. Fisker purchased a shuttered GM plant in Delaware, where it said it would build the cars. Vice President Joe Biden attended a press conference announcing the awarding of the loan.

More than two years after the awarding of the loan, however, it was revealed that Fisker had shifted its production to Finland, hiring 500 workers there. It was also revealed that only 40 electric cars had been built, of which only 2 had been delivered to customers.

I’ll go for the cheap joke: Karma is a Fill in the Blank! No amount of government $$ thrown into a technology can effect a multi-generational leap in that technology! Failure is so predictable it’s almost a law of physics! (It’s certainly observable, oft repeated and could conceivably be falsified!)


#2

Fisker Motors Meltdown, Fires 80% of Staff
by Warner Todd Huston


2013/04/05

The manufacturer of the rechargeable Karma auto informed 160 workers of the layoffs coming to the Anaheim, California-based company. Fisker was said to have employed 200 before this week’s announcement.

This is only the latest blow to the “green” auto company. Only last month, the company’s name-sake, Henrik Fisker, resigned over “unspecified” disagreements with other executives and the company stopped production of its cars after its lithium-ion battery supplier declared bankruptcy.

The battery company, A123 Systems Inc., declared bankruptcy in October of last year, despite the millions in tax dollars pumped into the company by President Obama’s administration.

According to Bloomberg, Fisker has retained the services of Kirkland & Ellis LLP to explore a restructuring of the company.

Wow! Taxpayers poured 10s of millions into A123 and 100s of millions into Fisker … how cozy … how stupid … predictable stupidity!


#3

Sad thing is, this isn’t news anymore. It’s happening on to regular of a basis.


#4

Sadder thing is, I don’t think it’s by accident.