Fisker Taken Out Behind Capitol Hill's Woodshed

Derek Kreindler
by Derek Kreindler

Congressional Republicans blasted current and former Fisker executives, as well as an official from the Department of Energy over missed milestones for their Department of Energy loans, which saw the company repeatedly fail to meet obligations while continuing to receive taxpayer money.

Fisker has had a trouble history as an automaker, despite its namesake’s success in penning iconic designs for the likes of BMW and Aston Martin. California Republican Congressman Darrell Issa compared Fisker to the likes of Preston Tucker, John DeLorean and Malcolm Bricklin, blunty telling Fisker “Quite frankly, innovative cars have a history of failing.”

But for many Republicans, their ire was aimed less at Fisker than at the Department of Energy. Sub-committee chairman Jim Jordan noted that

“Taxpayers have effectively subsidized luxury novelty vehicles for the likes of Justin Bieber, Leonardo DiCaprio and Al Gore,” Jordan said. “Fisker was not a well thought out startup. It had a fancy design and big names behind it, but no real business acumen. It was never destined to be a company of job creators, rather skillful rent-seekers.”

Fisker’s funding was cut off in 2011, after Fisker had received $192 million of a $529 million loan had been granted. A judge ruled that Fisker had failed to reach production and sales milestones associated with the loan. While the Karma was built in Finland, the next product, the smaller Atlantic sedan, was ostensibly going to be built in a former GM plant in Delaware. But supplier issues (including the bankruptcy of A123 Systems, their battery supplier) along with Fisker’s various recalls and mechanical problems with the Karma, helped derail Fisker’s plans.

Currently, Fisker’s prospects look quite bleak. Bankruptcy is predicted by a number of industry observers, and Fisker COO Bernard Koehler stated “whether the company will find new investors or whether the company may be obliged to seek bankruptcy protection.”

Derek Kreindler
Derek Kreindler

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  • Commando Commando on Apr 25, 2013

    Naughty, naughty. Spankee, spankee...

  • SCE to AUX SCE to AUX on Apr 25, 2013

    "California Republican Congressman Darrell Issa compared Fisker to the likes of Preston Tucker, John DeLorean and Malcolm Bricklin, blunty telling Fisker 'Quite frankly, innovative cars have a history of failing.'" That is an exceptionally irresponsible statement by Rep. Issa. Fisker is nowhere close to those other guys, and they never built a time machine.

  • Ajla If I was Ford I would just troll Stellantis at all times.
  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
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