Fisker Automotive

Fisker Execs Kept Salaries While Employees, Taxpayers Got Taken

Fisker hearingThirteen of Fisker Automotive executives made more than six figures in the past year, despite manufacturing zero cars.

The news was first reported Wednesday afternoon on the automotive Web site Jalopnik.com, and later in the evening by the Delaware Journal. Jalopnik often gets the scoops when electric cars catch fire. For those unaware of the ugly saga, Fisker declared bankruptcy at the end of last month after squandering more than $1.4 billion in private investment and losing $139 million of taxpayers’ money.

Delaware Taxpayers Out $21M Thanks to DOE's Fisker Flop

A123 logoThere’s a postscript to the Fisker Automotive bankruptcy story from earlier this week: The actions by the Department of Energy in awarding the unworthy luxury electric automaker a $529 million loan gave them validation, to the point where the state of Delaware made its own “investment” with state taxpayers’ money in the company.

Now that the collapse is official, Delawareans are out too.

More Bankruptcies Just Mark of 'Success' for Dept. of Energy

Fisker logoFisker Automotive declared bankruptcy last week, inspiring the eternally optimistic Obama Department of Energy to crow about its achievements again.

“Recognizing that these investments would include some risk, Congress established a loan loss reserve for the program, and the Energy Department built in strong safeguards to protect the taxpayer if companies could not meet their obligations,” Bill Gibbons, an agency spokesman, said in an e-mail to Bloomberg News. “Because of these actions…the Energy Department has protected nearly three-quarters of our original commitment to Fisker Automotive.”

Problems Pile up for Taxpayer-Subsidized Tesla

Tesla Tenn fireFires, faulty drive units, financial losses and stock price deflation marked Tesla Motors news in a week that seemed as bad as the last couple of years were good.

Fortunately for CEO Elon Musk and his support staff he’s mastered the art of celebri-preneur showmanship that he’s built enough standing with the media to endure a really bad week. The multi-billionaire who’s dazzled with innovation at Paypal, SpaceX and SolarCity will be permitted his stumbles because of his track record and his self-assurance. Henrik Fisker, whose taxpayer-backed luxury electric auto company didn’t get nearly the same favor, must be jealous.

Inspector General Says DOE Hid Vital Info from Audit of Bankrupt Ecotality

Blink chargerAfter an Inspector General’s audit earlier this year of now-bankrupt electric vehicle charging company Ecotality, which determined that millions of taxpayer dollars were wasted in a nearly unworkable program, the IG has returned with findings that the Department of Energy withheld information about the project’s problems during his first investigation.

The audit, released by DOE IG Gregory Friedman in July, determined (among other things) that the persistent weak demand for electric vehicles harmed the deployment and timeliness of a $135 million-plus taxpayer funded charging network, which led to excessive grants and project expansion that became virtually unusable under the grants’ guidelines. Investigators discovered that conditions for reimbursement to Ecotality for the EV charging demonstration project were “very generous” and that cost-sharing requirements were extremely lenient.

Details Revealed of Fisker's Waste and Mismanagement

Fisker logoAs NLPC has covered Fisker Automotive’s catastrophic flop over the last few years since it was granted a $529-million taxpayer-guaranteed loan from the Department of Energy, one big question that repeatedly came up was: How could a company that produced only one electric car model burn through $1.4 billion in investment so quickly?

Reuters uncovered a number of reasons in a report published earlier this week. Citing documents and some sources, mostly anonymous, the news syndicate painted a disturbing picture of mismanagement, incompetence, disinformation, and squander. While businesses stumble and go out of business every day, Fisker’s case illustrates why government bureaucrats are only accidental successes as investors of public money at best, but often are horrific decision makers at worst.

A123 and Fisker Fire at Each Other as Taxpayers Run for Cover

A123 logoFisker logoAs if taxpayers didn’t already have to stomach enough corruption, incompetence and dysfunction in the government's promotion of "green" energy, two past exemplars failure have returned to discharge blame at each other.

Fisker Automotive and A123 Systems are the costly malfunctions that zap you over and over again.

The latest, from a FoxBusiness.com report, reveals that sparks flew between the two as both of the Department of Energy-financed companies plummeted in their production, public profiles and value. According to an anonymous source the network says was “familiar with the situation,” when Fisker announced last fall it would cease production, the manufacturer of the $102,000 plug-in Karma blamed the bankruptcy of its battery manufacturer – A123 – for its downfall. The last of Fisker’s only model was produced in July last year.

Administration Denies Reality at Fisker Congressional Hearing

Fisker hearingAs the Department of Energy seized the last of Fisker Automotive’s reserves in lieu of an unknown amount that it was due to repay this week, what’s left of the lame electric automaker clings to the slim hope it can survive.

While CEO Tony Posawatz and his team may need an intervention, a hearing before the House Oversight and Government Reform Committee yesterday revealed that DOE and committee Democrats (as well as those in the Obama administration) are hopelessly stuck in an alternate universe, where losing millions of taxpayer dollars is considered a good record. Republicans had called officials from the company – including founder Henrik Fisker, as well as administrators of DOE’s loan program – to explain the logic that went into granting $529 million to a fledgling, unproven car company that targets an ultra-rich clientele.

Lawsuit and a Congressional Hearing as Fisker Bankruptcy Nears

Fisker logoAs green energy stimulus recipients raked in billions of dollars the last few years, with President Obama declaring what a great “investment” they were for taxpayers, friends of mine would jokingly ask, “Where’s my dividend?” “Where are my stock certificates?” “Where’s my free electric car?!” 

In the case of our $193-million stake in Fisker Automotive, thanks to a Department of Energy loan guarantee, it looks like American shareholders will end up with the whole company itself.

No April Fools: Obama's Green Energy Stimulus is Officially a Joke

Three Stooges photoPresident Obama’s alternative energy “stimulus,” administered through his Department of Energy by previous Secretary Steven Chu, had already become a joke because of the failures and foibles of so many recipients of Recovery Act funds. But now – as though officially commemorating the absurdity of this historically bad U.S. government program – one of its bankrupt beneficiaries has changed its name from one of simplicity to one of mockery.

Electric vehicle battery maker A123 Systems has changed its name to B456 Systems. Incorporated.

Syndicate content