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Fisker Loses Government Loan Money, Delays Next Vehicles

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On: Wed, Feb 15, 2012 at 5:27PM | By: Chris Weiss


Fisker Loses Government Loan Money, Delays Next Vehicles

I hate to say it, but Fisker just has the feel of a company teetering very closely to disaster and bankruptcy. The start-up has encountered nothing but obstacles and speed bumps in its attempts to get its Karma and next-generation models to market. The latest speed bump culminates from past speed bumps.

Delay after delay on Karma production. Price increase after price increase. Unimpressive official fuel economy rating. Battery fires. Did we miss anything? All those factors have hampered Fisker's ability to get its Karma plug-in hybrid rolling. The car was introduced back in 2008 and just barely made it to market last year.

It looks like those issues will affect Fisker's next generation of cars as well as the Karma. The US Department of Energy blocked access to hundreds of millions of dollars worth of loan money awarded in 2010 citing Fisker's failure to meet milestones. The Associated Press reports those missed milestones relate to the Karma's development and sales. The loan was blocked back in May, according to Bloomberg, and forced Fisker to stop production and lay off 26 workers at its Delaware plant and 40 in California last week.

The action comes at a time when Congress is tightening down on federal programs aimed at funding advanced technological vehicles. The bankruptcy of electric car company Solyndra, another federal loan recipient, has increased the cry for more government oversight and less funding for such ventures.

Fisker is working with the Department of Energy to renegotiate the terms of its loan agreement and hopes to have a resolution that will get it back on track in the near future. It hopes that it can get funds released. Fisker has received $193 million out of its total $529 million loan, according to the AP.




Comments

reply

Sami18 | 12:33PM (Thu, Feb 16, 2012)

Fisker sure did take out a big loan for there production of cars but i haven't ever seen this kinda car before and that probably because no one is buying these cars.


reply

Stephy21 | 12:45PM (Thu, Feb 16, 2012)

What a waste of government money can some one please shut them down. If you have to take loans out to run your business you shouldn't have one.



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