Another “green” company to add to the list of Obama green failures (h/t Dana)
(The Hill) Fisker Automotive, a federally backed maker of plug-in hybrid cars, laid off 75 percent of its workers Friday as it struggles to stay afloat and find new capital, according to press accounts.
Fisker drew $193 million of a $529 million Energy Department loan agreement reached in 2009 before the department halted payments in 2011.
Here’s the Associated Press Friday on what ails Fisker:
Fisker, which makes the $100,000 Karma plug-in hybrid sports car, hasn’t produced any cars since last year after its battery supplier filed for bankruptcy protection (WT-that would be another Obama Stimulus recipient, A123 Systems). The company has struggled to attract investment and was shopping around for a buyer or company to join it in an alliance. Last month, its co-founder resigned and Fisker furloughed its staff of about 220 for one week. The company at one time had about 600 workers.
They barely produced any cars in the first place, and, as the Occupiers would say, they all went to 1%ers. Not much call for the common folk to purchase a $100k “green” car that doesn’t go very far on a charge. While they supposedly sold around 1,800 vehicles, but, this was nowhere near what they needed, resulting in suspending production at their Valmant Automotive plant in Finland and the layoffs of half that workforce.
Sadly, Obama could have used the Stimulus to wisely put the United States on a path towards greater use of alternative energy sources that would have competed cost wise with traditional sources, like coal, fossil fuels, and nuclear. But, nooooo, instead he played political games (roughly 80% of the stimulus green money went to Democrat donors) and made risky loans. How many companies out there with a good, viable, workable idea were ignored? It would have been better had the money gone to research and development. I’d hazard to say that most of us would agree that there is nothing inherently wrong with looking towards the future and having cleaner energy sources. Unfortunately, Obama has made “green” energy a laughingstock.
Cutting edge tech is inherently risky. Always was and always will be. the US government has always been willing to subsidize new technology starting withe these new fangled steam railroads. If our government will not risk money on this tech well the Chinese certainly will and no doubt they will be happy to buy Fisker. They know taht electric cars will be big in the future. The US governemnt lost billions developing nuclear power.
Sorry john, but the railroads were private enterprises. The government didn’t lose anything in nuclear power (as they didn’t develope it anywat and even if they had, nuclear power has benefitted everyone.)
Apparently you are happy throwing other people’s money down the rabbit hole based on political connections.
Many people are not.
If Fisker;s technology and product was good, people in the private sector would have invested in it.
But if you love them so much, put your own money into it. Do what you tell others to do.
Actually, John, China has been careful with the money they invest. They haven’t just been pissing it away on projects that reward campaign donors.
[…] at Pirate’s Cove, is blogging about “Surprise: Stimulus Recipient Fisker Auto Lays Of 75% Of Their Workforce.” Go check it […]
[…] William Teach noted that Fisker Automotive, a federally backed maker of plug-in hybrid cars, has laid off 75% of its workers. This isn’t really a surprise: the “green” industry subsidies were based on ideology, not sound economics; sound economics would inform economists, and really anybody with any common sense, that if a particular industry needs government subsidies to make it in the first place, it isn’t going to survive in the long run, because there was insufficient demand for their products. Mr Teach wrote that Fisker: barely produced any cars in the first place, and, as the Occupiers would say, they all went to 1%ers. Not much call for the common folk to purchase a $100k “green†car that doesn’t go very far on a charge. While they supposedly sold around 1,800 vehicles, but, this was nowhere near what they needed, resulting in suspending production at their Valmant Automotive plant in Finland and the layoffs of half that workforce. […]
Don’t you mean B456 Systems?
That is a completely and wholly different company, no way at all like A123. Even the name is completely and wholly different.