It was announced this week that Fisker Motors will be laying off a quarter of the employees currently involved in refurbishing the former GM plant near Newport, Delaware. The company has also laid off 40-45 employees from its California operation as well.
It seems as if the Finnish car manufacturer is having some trouble meeting the specific fundraising, production and sales goals set forth in a loan agreement with the Department of Energy. Until the company meets these terms, they are a little strapped for cash. I just can’t understand how they can be having problems meeting sales goals for an experimental car that cost $108,000 that has had two recalls already. Can’t the American people put aside their common sense and buy into the liberal B S and go into hock to buy a car that you can only drive about a hundred miles between charges.
The original loan agreement was for a total of $529 million to be handed out in successive disbursements as the goals were met. The exact terms of the loan are confidential according to Roger Ormisher, spokesman for Fisker.
Can someone explain how a loan being made by a government agency, with tax dollars can be confidential from the tax payers?
It seems as if Fisker has received $193 Million of the loan as of May 2011, but that is just not enough. They are currently attempting to renegotiate the terms of the loan so as to gain access to the remaining $336 Million without having to meet the goals set forth in the original agreement.
These amounts do not include another $21.5 Million in loans and grants from Delaware’s Economic Developement Office run by former Republican Alan Levin, okay technically he is still a Republican I guess.
In a testimony to his understanding of a capitalist system, Mr. Ormisher made this statement about the slow response of the Department of Energy;
“The DOE can sometimes take a little bit of time,” Ormisher said. “We can’t keep going and going and going without that money.”
We can’t keep going without that money? Did that seem a little demanding coming from a company that is living off of corporate welfare?
This is not the first trouble the Fisker company has run into, in October 2011 the company denied charges that it was using any part of the federal loan to fund manufacturing operations in Finland. Also in October 2011 the company pushed back its production schedule to 2013 for the Delaware operation.
It would seem as if Delaware’s congressional contingent is still backing the idea of Fisker Motors being able to succeed.
In a statement Sen. Tom Carper (D) had this to say;
“It’s not unusual for car companies to experience delays and I expect this pause to be similar to the delays seen with new vehicles such as the Chevy Volt and Nissan Leaf,”
So Sen. Carper is comparing the Fisker Karma (ironic that it is named Karma don’t you think) to two other experimental cars that have failed to capture the imagination or the dollars of the American people.
The Senator also said;
“This delay gives Fisker the opportunity to regroup and launch an even better product built in Delaware.”
I guess this is Sen. Carper’s version of lemonade from lemons . (pun intended)
Both Sen. Carper and Rep. Carney(D) expressed their feelings that the lay offs were deeply troubling, but that they both felt that the best thing that could happen would be for the Department of Energy to come to a quick agreement to re-tool the loan agreements so as to free up more of our tax dollars for this liberal pipe dream.
Our very own Gov. Markell, who has been a supporter of the Fisker fiasco, expressed his feeling this way, “We are frustrated that Fisker and the DOE have been unable to come to terms on revisions to their loan agreement in time to avoid this,”
So it would seem as if Gov. Markell is more concerned with giving more tax dollars to a company that is showing poor signs of being able to sell its product, than he is with protecting tax payers from being robbed of their hard-earned money.
This is another example of the Markell administration being little more than a scaled down version of the Obama administration, not surprising considering who our Vice-President is. It isn’t hard to figure out who is pulling the Governor’s strings.
We need only look at another Department of Energy loan to an experimental company, Solyndra, the California-based solar panel maker that failed and filed bankruptcy after receiving $535 Million in a separate but similar loan from the Department of Energy, to see that Fisker is headed down a similar road. So when we see Delaware kicking in $21.5 Million along with Washington’s $529 Million we can see that Gov. Markell can now call the Fisker fiasco his own Solyndra.
So to wrap this all up lets run the numbers. So far we have $550.5 Million in promised loans from both Delaware and D.C., and what do we have to show for it ? Well we had somewhere around one hundred jobs, that is until Fisker announced that they were laying off twenty-six people. We have not a single car produced in Delaware, though the one authorized dealer in Delaware has said that he has ten orders for the Karma (okay I laugh ever time I write that) and hopes to be able to deliver one soon.
Now if that isn’t math that will convince you that Democrats and liberals are crazy with your money, well then nothing will.