Fisker, DOT Agree to Terms of $528.7 Million Loan

Fiskerkarma

The U.S. Department of Energy and Fisker Automotive have agreed to terms for a $528.7 million loan to create affordable plug-in hybrid vehicles. The money comes from the $25 billion Advanced Technologies Vehicle Manufacturing Loan Program, which was created by Congress last November.

Fisker claims the loan will create or save 5,000 jobs among manufacturers and auto suppliers. The plug-in hybrid manufacturer also claims that by 2016 an estimated 821 million gallons of gasoline will be saved and 8 million tons of CO2 offset by sales of Fisker’s low-cost plug-in hybrid models.

The rub? The first “low-cost” model Fisker will roll out will be $39,900 after tax credits. That’s a heavy premium to pay even when getting 50 miles to a charge and a gas-extended range of 300 miles like you do with the Fisker Karma. To make the car a value through its fuel savings, the term “low-cost” will have to lose the ironic quotation marks.

Currently, Fisker has said it has 1,500 orders for future Karma vehicles — a high-end sedan — and has recruited a network of 45 retailers, which it hopes to grow to 100 in the coming years.

By Stephen Markley | September 23, 2009 | Comments (1)

Comments 

Raza Singh

This funding for the car companies was all "pay to play", insider, self-dealing. The companies that were turned down had the exact same things in common:
1. They did not pay hundreds of thousands to buy influence. This is on public record and can be investigation under lobby and cost filings.
2. They did not make campaign contributions.
3. Each of the reasons they were told they were turned down were violated with each of the companies that did get money.
4. They were doing all of the work in the U.S. unlike those who did get the money.
5. They had a car design and those who got the money were “thinking about doing a car design”.
6. You could not draw a line from them to a politician or a person who made money or political gain unlike those who did get the money.

Every one of the people that did get money got the “requirements” of the section 136 law waived or were in direct violation of the intent-of-the-law yet the DOE team for that money used those very same “requirements” to say that they would deny funding to those who had not contributed.

It was a crooked set of deals and the regulatory, law enforcement and voters need to make some noise about this.”

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