The article reports:
Newly obtained documents show 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 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 the launch of the company’s signature, $100,000 Karma hybrid — had been achieved, according to a credit report prepared by the Energy Department.
This is a familiar story in the Obama Administration. Solyndra was also going bankrupt as the government was funding the company. In 2009 Vice-President Biden stated that Fisker was planning to buy a shuttered General Motors plant in Delaware to produce hybrid cars. The plant was never opened and no cars were ever produced.
The Wall Street Journal also reported on the Karma, a luxury car produced by Fisker that has a sticker price of over $100,000:
Mr. Simon says his car broke down four times over the span of a few months. Each time, Fisker Automotive Inc. picked it up and sent it by trailer from his home in Omaha, Neb., to a dealer in Minneapolis.
The Karma was “so vulnerable to software errors, and the parts used were of such poor quality that eventually I insisted they take the car back and return my purchase price, which they did,” he says. “It’s a real shame, the car itself was beautiful.” …
Troubles with suppliers and regulatory requirements added months to the Karma’s release. Its engineers expressed concerns that the software that ran the Karma’s display screens and phone connections wasn’t ready, people familiar with the situation say. Still, the Karma went out to customers. The company said that its problems were expected of any new model. …
Fisker stopped production of the Karma at a factory in Finland in July 2012 in an attempt to negotiate a cost-saving contract. The following month, Fisker recalled its cars for a second time to fix a cooling system flaw that was linked to battery fires.
It hasn’t built a car since.
American tax dollars at work. I would strongly recommend that after the Obama Administration leaves office none of its members become stockbrokers.