White House Ignored Warnings of Fisker Struggles, Kept Throwing Money at It

Posted by on Apr 24, 2013 at 7:40 am

So what did these reprobates do when they discovered the taxpayer-financed electric car company was in shambles? Why, they threw more of your money at it.

Newly released documents show that the Obama administration was warned as early as 2010 that electric car maker Fisker Automotive Inc. was not meeting milestones set up for a half-billion dollar government loan, nearly a year before U.S. officials froze the loan after questions were raised about the company’s statements.

An Energy Department official said in a June 2010 email that Fisker’s bid to draw on the federal loan may be jeopardized for failure to meet goals established by the Energy Department.

Despite that warning, Fisker continued to receive money until June 2011, when the DOE halted further funding. The agency did so after Fisker presented new information that called into question whether key milestones — including launch of the company’s signature, $100,000 Karma hybrid — had been achieved, according to a credit report prepared by the Energy Department.

The December 2011 credit report said “DOE staff asked questions about the delays” in the launch of the Karma “and received varied and incomplete explanations,” leading to the suspension of the loan. Fisker had received a total of $192 million of the $529 million loan before it was suspended.

Here’s a suggestion: Let’s take this money out of the Obama entertainment, golf and vacation budget. Let them learn what it’s like to make do with less.

The potential loss of $171 million would be largest loss of federal loan money since the 2011 failure of solar panel maker Solyndra, which declared bankruptcy and laid off all its workers after receiving a $528 million loan from the Energy Department.

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One Response to “White House Ignored Warnings of Fisker Struggles, Kept Throwing Money at It”

  1. Blue Hen on 24/24/13 at 9:36 am

    Geepers. How much of those FAA furloughs could have been avoided if this money hadn’t been flushed down the rathole?