Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Taxpayers lose $139 million on Fisker Automotive loan
dailycaller.com ^ | 3:59 PM 11/22/2013

Posted on 11/25/2013 7:16:47 PM PST by DBCJR

Happy Thanksgiving from the Obama administration. The Energy Department has sold off its $192 million loan guarantee to Fisker Automotive to Chinese billionaire Richard Li for $25 million — the biggest taxpayer loss on a green loan since the failure of Solyndra.

The Energy Department will announce the “selling of the promissory note” to Hybrid Tech, which is owned by Chinese billionaire Richard Li, according to sources familiar with the sale. The DOE sold the loan to Li for $25 million after lending the financially troubled green automaker a total of $192 million since 2009.

“Once again, American taxpayers are losing out to foreign investors due to the Obama administration’s failed green energy policies. Time after time this administration has fumbled the ball with their attempts to pick winners and losers when it comes to American energy,” House Energy and Commerce Committee vice chairman Marsha Blackburn, a Tennessee Republican, said in a statement to The Daily Caller News Foundation.

“As a result of President Obama’s misguided policies, the Department of Energy Loan Guarantee program is quickly becoming a highly utilized stimulus program for foreign investors,” she added.

It was reported last month that Li and the Obama administration were ironing out the details of the Fisker loan sale after the Energy Department had completed its auction. Li’s purchase of the government’s loan represents the second acquisition of an Obama-backed green energy company by Chinese investors. Earlier this year, the Chinese auto parts conglomerate Wanxiang Group bought the electric car battery maker A123 Systems, renaming the company B456.

Including the $25 million loan sale, the DOE has recovered only $53 million of the original $192 million disbursed — netting taxpayers a $139 million loss.

Fisker was awarded a $529 million loan guarantee by the Obama administration in 2009 to produce a luxury hybrid car, the Karma, which sold for a $103,000 per unit. However, failure to meet Energy Department benchmarks to receive funding resulted in the company losing its loan guarantee in 2011. The company drew down on $192 million before having its federal funding pulled. The Obama administration seized $21 million from the company in April to help repay taxpayers for its loan.

Earlier this year, reports came out that Fisker had violated its loan agreements multiple times before being cut off by the Obama administration in 2011. Bloomberg reported that Fisker’s technical defaults began in 2011 partly due to “lower-than-required earnings before interest, taxes, depreciation and amortization, and failing to meet a production milestone of at least 11,000 vehicles sold to dealers for an average of $87,500 by Sept. 30, 2011.”


TOPICS: Chit/Chat
KEYWORDS: doe; energy; fisker; solyndra

1 posted on 11/25/2013 7:16:47 PM PST by DBCJR
[ Post Reply | Private Reply | View Replies]

To: DBCJR

This was dumb money the federales spent but anyone who knows anything about start ups knows that most of them fail.

But the ones that succeed can wipe out all the losses plus create fabulous wealth for investors.

For example, while Fisker failed, Tesla has a very good chance of being successful. Now the loan they got from the federales may well have been appropriated under bush. What’s more Tesla has already paid off the government loan.

However, right now Tesla has a very good chance of succeeding. The success of Tesla would have incredible significance for the price of oil. If it happens that would be a decade or two off yet however.


2 posted on 11/25/2013 7:35:23 PM PST by ckilmer
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

$250 bbl oil would probably do it.


3 posted on 11/25/2013 8:04:26 PM PST by Eric in the Ozarks ("Say Not the Struggle Naught Availeth.")
[ Post Reply | Private Reply | To 2 | View Replies]

To: DBCJR

...and why aren’t various government criminals and fisker criminals going to prison? These maggots are slime.


4 posted on 11/25/2013 10:41:56 PM PST by ogen hal (First amendment or reeducation camp)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson