Gore-Backed Car Firm Gets Large U.S. Loan

[fab]

Here it is :

WASHINGTON -- A tiny car company backed by former Vice President Al Gore has just gotten a $529 million U.S. government loan to help build a hybrid sports car in Finland that will sell for about $89,000.

http://online.wsj.com/article/SB1253...Tabs%3Darticle

[stock_post]

Bribery is very common in 3rd world countries.
It has its mutation all around the world.

Just $89,000 for a car - May they only sell to Senators and CEO's

[Mike Cruz]

Cool, nice looking cars. Good to see the government is loaning money instead of throwing it at failing, greedy companies...

[Big P]

That money could have been put to better use in the US, where its needed.. Another waste that many will come up with a lame excuse as to why its ok. Let the excuses begin.

[Seraphim]

Saving the environment one hybrid Lamborghini at a time!

[elius]

from the article: "Fisker said most of its DOE loan will be used to finance U.S. production of a $40,000 family sedan that has yet to be designed."

Many people are looking forward buying these cars instead of the gas-guzzlers that where saved with the GM bail out. And, as stated above, it is a loan so unless the company goes belly up, the money will be repaid with interest.

The whole Gore link and influantial connections bit of the story does make the whole process of awarding loans seem shady though.

[south]

build a hybrid sports car in Finland

More great use of U.S. taxpayers money. Surely this will put more Americans to work.

[draggar]

from the article: "Fisker said most of its DOE loan will be used to finance U.S. production of a $40,000 family sedan that has yet to be designed."

OK, what's wrong with this picture? Can I call out B.S.?

And MOST??

So our money is going to fund a foreign car company to sell cars in another country? Seriously? What is wrong with this whole picture??

[south]

OK, what's wrong with this picture? Can I call out B.S.?

And MOST??

So our money is going to fund a foreign car company to sell cars in another country? Seriously? What is wrong with this whole picture??

Yes, just stay bent over.

Someone pass the vaseline please!

[elius]

the start of the article is misleading. Fisker states most of the money will go to a sedan not the sportscar mentioned in the beginning. I assume this is part of the proposal they got the loan from.

Also, the article clearly states at the beginning of the second paragraph that the company is california based : "[..] The award this week to California startup Fisker Automotive Inc [...]". If this company is succesful, americans will profit from it.

Rereading the article it seems it is aimed at getting people aroused instead of presenting the facts.

Still, a startup that gets this kind of money should raise eyebrows anywhere.

[draggar]

My wife is trying to start her own business and want to know how much Uncle Sam is giving / loaning her? NONE.

Just imagine what she could do with half a billion.

[Donald Aquilano]

My wife is trying to start her own business and want to know how much Uncle Sam is giving / loaning her? NONE.

Just imagine what she could do with half a billion.

The best thing government could do is loan your wife money to start her own business. Small businesses account for most of the job growth in America and we should find ways to help them flourish. Its the only way I see us really getting out of this recession were in.

[elius]

from the fisker website: "Fisker Automotive expects to create or save at least 5,000 US jobs among auto suppliers and thousands more to manufacture a plug-in hybrid in the U.S.[...] Global sales are predicted to exceed 100,000 units annually. A significant percentage will be exported, helping to balance the US trade deficit."

They have big plans so they need big money. Supporting big ideas and supporting small ideas is not mutually exclusive. The fact that small businesses aren't supported with loans probably has different causes.
Lending to small businesses that are succesful or startups with a good business plan could very well help out in the current economical situation. There is however a lot of risk involved and currently it appears this is not part of any major policy. Changing from oil to electricity is.

[H2FC]

This is a good investment for taxpayers money. These new green cars will be sold all over the world including the USA and will come down in price as the economy of scale takes effect.

This is whats needed to get away from the gas guzzling and polluting transportation thats causing a great many of our worlds major problems mainly health, climate change, wars, and economics.

Welcome to the twenty first century....its gonna get a lot better!

[000]

Cool, nice looking cars. Good to see the government is loaning money instead of throwing it at failing, greedy companies...

Fisker Automotive is a joint venture between Fisker Coachbuild and Quantum Technologies. Fisker Automotive and Fisker Coachbuild financial statements are not public, but Quantum Technologies is publicly traded (symbol QTWW) and has been burning cash since at least 2006. Losses are normal for startups, but failure is also a distinct possibility for any startup unless the government is totally in the tank with them. Hundreds of idea men have started car companies over the years. Few of those companies survive.

from the article: "Fisker said most of its DOE loan will be used to finance U.S. production of a $40,000 family sedan that has yet to be designed." Many people are looking forward buying these cars instead of the gas-guzzlers that where saved with the GM bail out. And, as stated above, it is a loan so unless the company goes belly up, the money will be repaid with interest...

This is a good investment for taxpayers money...

What are the odds of a startup company promising the moon, then going belly up? Take a good look at global auto manufacturing. It's a train wreck. The vaunted Toyota Production System, aka creating more value for less work, wasn't enough to keep Toyota from gushing red ink in the year ending 31-mar-09. What is the Fisker Production System track record? (Answer: "This is not Mr Fisker's first venture in the automobile manufacturing business. He previously attempted to sell custom-bodied Mercedes-Benz SL and BMW 6 series automobiles. Despite much fanfare, this venture fell flat and only a couple of cars were made." source) Fisker is buying Karma components including engines from GM, and the Fisker drive system design is similar to that due in the 2011 Chevy Volt. Karma assembly work has been subbed to Valmet Automotive in Finland. Not the first place you think of to get a leg up in the cut throat car business. Valmet isn't exactly spewing cash to the corporate (Metso) bottom line. Fisker's business model is heavily dependent on the supply chain. They'll need every link in the chain firing on all cylinders.

from the fisker website: "Fisker Automotive expects to create or save at least 5,000 US jobs ...

"Create or save"? That's DC speak ... red flag warning. Their site also claims that the mass market NINA model will debut in 2012 with 100,000 global sales expected. A few minor long lead details remain to be worked out, like vehicle design, tool design, vehicle development, manufacturing outsourcing and cranking up mass production. In the meantime taxpayers can take comfort knowing that "Karma’s EcoSport™ series incorporates hand-wrapped premium leather using a 100% sustainable manufacturing strategy, which minimizes the number of hides required and highlights natural markings." source

[000]

2 year progress report …

QTWW share price
10/01/2009: $27.00
10/24/2011: $2.21

Fisker occupies a manufacturing plant in Joe Biden's hometown of Wilmington DE

EPA fuel economy ratings 2012 Fisker Karma
52 MPGe (electric mode, energy equivalent city/highway combined)
20 MPG in gasoline-only mode
32 miles all-electric range

For comparison, the 2012 Chevrolet Volt:
94 MPGe
37 MPG gas-only
35 miles all-electric range

Old school gas comparisons:
2012 Toyota Tacoma 2WD Manual 5-spd 21 city / 25 hwy
2012 Chevrolet Corvette Manual 6-spd 16 city / 26 hwy


sources

http://finance.yahoo.com/q?s=qtww&ql=1

http://media.fiskerautomotive.com/gl...-certification

http://www.autoblog.com/2011/10/19/f...lectric-range/

http://www.fueleconomy.gov/

http://media.fiskerautomotive.com/gl...delaware-plant

[randomo]

Fisker car production in Delaware will be in a recently closed GM plant. They will probably employ many of those laid-off union autoworkers.

[jasdon11]

Bribery is very common in 3rd world countries.
It has its mutation all around the world.

Just $89,000 for a car - May they only sell to Senators and CEO's

Surely you're not saying Finland is a 3rd world country?

......

Expect about $50m to fiter down to produce something resembling a factory and a few new prototypes before the project is deemed to be pointless and shut down...meanwhile no-one asks where the rest of the money went.

It's not in the £billions after all...not worth the trouble.

[Raider]

More Wasted Taxes dollars.. This time $500 Million dollars we DON'T have going to a car company that employs workers overseas?

And when the Delaware plant goes online it will create a whopping 2600 jobs?

For a car that is expected to sell for over $100,000?.. I can see people lining up at the dealerships now

WTF happened to Private investment?



What Obama lacks in common sense, he more than makes up for in stupidity.