California Congressman Darrell Issa wants to investigate the Department of Energy’s loans to nearly-bankrupt Fisker after the company laid off most of its employees and retained bankruptcy lawyers last week.
According to Bloomberg, Issa is concerned that Fisker’s loan may have prevented other, more deserving companies from getting the money, stating
“[Fisker] is a design company, not a manufacturing company…It was destined to fail from the beginning. The greater concern is, does this affect more viable companies, whether they received loans or not.”
Bloomberg notes that Aptera, an EV start-up that Issa backed in the past (and was based in his congressional district) was denied a DoE loan under the Advanced TechnologyVehicles Manufacturing Program – the same program that Fisker got its funding from. Fisker’s $529 million loan was meant to convert a former GM factory in Delaware into a Fisker production center. But Fisker never produced a single car there, instead relying on Finland’s Valmet to produce the Fisker Karma sedan under contract.