Business

Gov’t-Subsidized Company Goes Through Another Round of Layoffs: Plant Is ‘Absolutely Empty’

Govt Subsidized Company Goes Through Another Round of Layoffs: Plant Is Absolutely EmptyAn electric car manufacturer that was awarded more than half a billion dollars in loan guarantees from the Department of Energy has gone through a second round of layoffs.

“On Friday, Delaware Online reports, 12 more workers — including engineers and maintenance technicians — were laid off at [Fisker’s Delaware plant], leaving ‘only a small maintenance team’ left there,” Sebastian Blanco writes for AOL autoblog.

“One of those let go was Jeff Garland, who had been working on community affairs and business development efforts in Delaware. He said the plant is currently ‘absolutely empty.’ This is because Fisker has taken out the old GM equipment but has not yet installed the machines it would need to build the Atlantic,” Blanco adds.

Fisker has already fired 26 employees. What’s the reason for another round of layoffs?

“I think what happened was the budget numbers are so tight right now and they’re working so hard to preserve as much cash as they can that something had to give. We’re not making a car in Wilmington right now, so given that situation it was an obvious place to make a cut,” Garland told Delaware Online.

Analysts blame the lousy state of Fisker’s finances on the fact that the DOE has denied the company the second round of its loan.

Here, as reported earlier on The Blaze, this is Fisker’s situation:

  1. Fisker Automotive is given $193 million of a $529 million DOE loan to produce two lines of plug-in hybrid cars and, presumably, create jobs.
  2. The company is unable to find a contract manufacturer in the United States, so it outsources manufacturing jobs to Finland (the company vehemently denies charges that it has used any part of the federal loan to fund manufacturing operations in Finland).
  3. The automaker falls behind its production schedule and experiences “delays” in its sales (i.e. poor sales), depleting its capital.
  4. But to qualify for the rest of the $529 million loan guarantee, the company has to maintain a certain amount of capital.
  5. Therefore, in order to meet this DOE benchmark, Fisker Automotive decides it will save money by laying off an “undisclosed number” of employees.

The company maintains that this is only a momentary setback and that it will be back on its feet in no time.

“We have always had a flexible business model that allows us to scale up and down as work demands. As we ramp up the project again we will add new headcount,” said Fisker spokeman Russell Datz.

Govt Subsidized Company Goes Through Another Round of Layoffs: Plant Is Absolutely Empty“We’ve accomplished a lot at the plant, using more than 40 local contract firms to recycle old material and equipment. The plant is now ready for the next phase of installing new production equipment,” he added.

Of course, as many Blaze readers know, this isn’t the first time Fisker has been in the news.

First, as mentioned in the above, the Al Gore-connected auto company outsourced manufacturing duties to foreign plants. Next, there were the mass layoffs. Lastly, there was the story about A123 Systems, the company that developed batteries for Fisker cars, firing 125 employees.

(H/T: WZ)

Comments (61)

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  • South Philly Boy
    Posted on April 18, 2012 at 6:54pm

    More STOLEN US Taxpayers MONEY

    Report Post » South Philly Boy  
    • Jaycen
      Posted on April 18, 2012 at 10:47pm

      Who would buy one of these cars now? How many thousands of dollars would you have to pay of your own money, in order to purchase something that was built using your tax dollars?

      You’d have to be an idiot to pay for a Fisker.

      Report Post » Jaycen  
    • JohnnyMidknight
      Posted on April 19, 2012 at 4:29pm

      Hold up everyone…. This is the tip of the iceberg. This is Al Gore’s Company:
      http://online.wsj.com/article/SB125383160812639013.html
      “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.

      The award this week to California startup Fisker Automotive Inc. follows a $465 million government loan to Tesla Motors Inc., purveyors of a $109,000 British-built electric Roadster. Tesla is a California startup focusing on all-electric vehicles, with a number of celebrity endorsements that is backed by investors that have contributed to Democratic campaigns.”

      I don’t know about you, but I would want a further investigation on this one.

      Report Post » JohnnyMidknight  
    • JohnnyMidknight
      Posted on April 19, 2012 at 4:34pm

      I wonder if like Solyndra, the top execs got 70% raises and bonuses despite the layoffs after getting the loan? I mean the money didn’t go to Finland (where the plant is). So where is it?

      Report Post » JohnnyMidknight  
  • DisposableWorker
    Posted on April 18, 2012 at 6:25pm

    Buy American; buy FORD.

    Report Post »  
    • TNT75
      Posted on April 18, 2012 at 6:57pm

      Darn right!

      Report Post » TNT75  
    • johnjamison
      Posted on April 19, 2012 at 9:00am

      Ford is the only America car company left. He77 Toyota ,and BMW are more American than the socialist over at GM and CHRYSLER.
      I will never ever purchase a car from a company that has cost the U.S. TAX PAYERS 24 billion it will never get back. Fact is Obama and his adminstration had no right purchasing stock as a form of payment for tax payer funded loans. The government should have put G.M on payment plan with say 2%-1/2 % interest plan then we would actually make all our money back. No Obama brought bloated stocks with our money and now unless the stock can regain all of it‘s lose we’ll never get back all of the total 44 billion G.M leeched from the tax payers.
      And this money lost isn’t even counting the 10,000 in subsities Obama is giving on every Volt purchase or the 20,000 IN SUBSITIES HE’S GIVING G.M. ON EVERY VOLT PRODUCED.

       
  • Infidel49
    Posted on April 18, 2012 at 6:16pm

    People are getting rich at the expense of the taxpayer, while hard working people get shiited on.

    Report Post » Infidel49  
  • Cat_Ion
    Posted on April 18, 2012 at 6:04pm

    In addition, the delawareonline.com article states: “Fisker, which has already laid off 26 workers at the site, was also awarded $21.5 million in grants and loans from the state. The company has collected more than $18 million of that funding to clean out the plant and keep the electric and gas bills paid. Delaware continues to make those payments despite Fisker’s idling of the factory.”

    Those in charge of Delaware state government are idiots. Remember “that huge sucking sound” that Ross Perot talked about? Its going on right here in this country, all to the detriment of hard-working, producing, taxpayers, that is those of us who actually Pay our taxes, (i.e., not Warren Buffet, Pamela Anderson, Lionel Ritchie, etc.).

    Report Post »  
    • Zipit
      Posted on April 18, 2012 at 9:44pm

      Three guesses as to who’s running Delaware! And that “Huge sucking noise” is Delawares favorite idiot Joe Biden, helping do to our country just what his buddies are doing to Delaware!

      Report Post »  
    • Cat_Ion
      Posted on April 18, 2012 at 11:10pm

      Oh, I don’t have to guess at all. Delaware politics — US Senators & Reps, Governors, Lt Govs, Attorneys General, State Treasurer — is practically incestuous. They’re like musical-chairs, just keep switching out one position for another. Its obvious and well-known. But a lot of Delawareans are Die-hard Dems and just plain really stupid people.

      I will say, though, that the Delaware state 9-12 group is working hard to awaken people.

      (Btw, Does the name Ron Bloom mean anything to anyone? He was a car-czar of Obama’s and is an SEIU alum, big union supporter… Boyhood chum of Gov. Markell…)

      Report Post »  
    • DEConservative
      Posted on April 19, 2012 at 8:34am

      Dead on Cat…A lot of Delawareans are die hard Dems…despite the fact that Delaware is free falling and about to slam into the bottom of the abyss, they will likely, once again, vote for the same career politicians and pathetic losers to represent them. I live in Delaware and I say “them” because I have been beating this drum for a long time now. There are a few of us who have stepped out and started 9-12 groups, TEA Party organizations, tried to change the political parties and even run for various offices but the masses in Delaware simply don’t understand the trouble they are in because the progressive government leaders can hide the pain from them for much longer due to the relatively low dollar numbers and the gouging of corporations. That said, people are beginning to see the jobs go away and not come back and they are understanding that SOMETHING is not right here. Will they figure it out before it’s too late? I don’t know. I hope so…but I don’t know.

      Report Post »  
  • Moe1138
    Posted on April 18, 2012 at 5:59pm

    I still can’t believe that a Finnish company received U.S. monies from the stimulus to help THEM out.
    I guess it wasn’t important enough for the U.S. to assist it’s own citizens.

    Report Post » Moe1138  
  • flsnipe
    Posted on April 18, 2012 at 5:50pm

    The government fails again, there is a surprise!!!!

    Report Post » flsnipe  
  • ContinentalArmy
    Posted on April 18, 2012 at 5:48pm

    Go Green! Just another Obama bail out FAILURE!!! No more bail outs, let them go Bankrupt and Stop the Excessive Spending!!!!

    Report Post »  
  • CORRUPTION
    Posted on April 18, 2012 at 5:48pm

    Gov’t-Subsidized
    Well here we go again. I am still looking in the Constitution where the Gov’t can subsidies anything. Here is another word for corruption.

    Report Post »  
    • MAMMY_NUNN
      Posted on April 18, 2012 at 7:27pm

      In this economy you can‘t start a new company unless it’s subsidized and no one in their right mind would invest their money for a product the consumers can’t afford at this time confidence will not return until Barry is gone.
      I don’t even believe Donald Trump is investing these days.

      Report Post »  
  • bikerr
    Posted on April 18, 2012 at 5:42pm

    The company maintains that this is only a momentary setback and that it will be back on its feet in no time.—-They were never“on their feet”. We the taxpayers were propping them up!

    Report Post »  
  • elosogrande
    Posted on April 18, 2012 at 5:30pm

    Give these people some space. They need more time to arrange an additional influx of Taxpayer provided capital, before they empty the till. They want their FAIR share of the rest of that $529 million.

    Report Post »  
  • AJAYW
    Posted on April 18, 2012 at 5:17pm

    If this was white kids doing this Al Sharpton, Rev. Wright, Louis Faricon, Jessie Jackson (Jr & Sr), Sheila Jackson Lee, Obama , eric holder would be having a hayday…..,

    Report Post »  
  • trueamerican40
    Posted on April 18, 2012 at 5:17pm

    Listen Mr. Idiot Dictator Barrack…8 trillion dollars of our hard-earned tax dollars to community colleges to help ‘train’ students IS NOT going to help at all when their are NO jobs available. This despotic socialist beast known as government has to GET out and STAY out of businesses so they can generate the money for themselves—>Economy 101–*

    Report Post » trueamerican40  
    • woodyb
      Posted on April 18, 2012 at 5:54pm

      But then the gooberent can pay their passage to the foreign countries which have the jobs which have been driven offshore by ODUMBO!!!!!!!

      Report Post »  
  • AJAYW
    Posted on April 18, 2012 at 5:14pm

    I think there is a lot of money being skimmed off the top of these company’s– Where is it going??

    Report Post »  
    • FstEti
      Posted on April 19, 2012 at 2:06am

      To the “Reelect Obama” war chest, silly.

      Report Post »  
  • thegodfather
    Posted on April 18, 2012 at 5:03pm

    Green jobs handouts…nothing but a money laundering scheme for the democrat party.

    Hand “green” company du jour $500 million dollars…they donate about 25 millions to Re-elect Obama campaign….then go broke.

    Report Post » thegodfather  
    • nobama4ever
      Posted on April 19, 2012 at 5:06pm

      This is exactly my thought. All these green companies are specifically given stimulus money to fund the democratic party and the dumbo with tax payer dollars.

      Report Post »  
  • MammalOne
    Posted on April 18, 2012 at 4:52pm

    It’s almost as if we should just let the free market decide which companies should succeed or fail…

    Report Post » MammalOne  
  • BlackCrow
    Posted on April 18, 2012 at 4:49pm

    Isn’t that the car that Consumer Reports had break down during their calibration test?

    Any wonder they are failing?

    Report Post » BlackCrow  
  • shotzie
    Posted on April 18, 2012 at 4:40pm

    I sure hope some intrepid blogger sticks with Russell Datz to get an explanation when they don’t “scale back up” a statement I doubt many are buying. I would LOVE to have an electric car with great mileage that was under $30k, had the pick up of my Suburban and the room of my Suburban to haul my kids and all their gear from place to place. But I think we all know that will ONLY come from the private sector, genius can’t be rushed or bought – it has to come about naturally. There is not an American who does not want to save money or be less harmful to our planet – but you cannot force that from people! Especially when the technology does not exist! I’d LOVE to have affordable solar and no electric bill!!! But it does not exist – not in Georgia! It will come eventually, in the meantime we have to support and encourage the energy methods we already have in place.

    Report Post » shotzie  
  • Anonymous T. Irrelevant
    Posted on April 18, 2012 at 4:38pm

    Fisker, Tesla, not many people these days can afford one of those cars. If they put gasoline engines in them, they might sell some, as they are not bad-looking cars, but the technology is just not feasible enough, yet. Why do these greenies keep trying to rush the future to the now?
    It will happen on it’s own when we have some genius kid invent a small, powerful, power source to be able to run things like automobiles, maybe evn flying cars, by then, but quit trying to lie to yourselves, greenies, that windmills and solar power is the answer.

    Report Post » Anonymous T. Irrelevant  
  • wboehmer
    Posted on April 18, 2012 at 4:38pm

    Chalk up another raving green energy success to the Worst-President-Ever Øbama Administration.

    Because it’s only “common sense” that we need to borrow 40 cents of every dollar to make investments in alternative energy.

    Report Post »  
  • mbean
    Posted on April 18, 2012 at 4:37pm

    If the money there were given was to create jobs then it should be used for that. If not where is the money and who has it and what did they do with it?

    An investigation into the money trail is needed.

    Report Post » mbean  
    • RightUnite
      Posted on April 18, 2012 at 4:48pm

      Here’s where the money went…. Big Obama backers, who own the companies, took their cut first, and made sure it was a sizeable chunk. Then when it came time to actually build “WHATEVER”, the money needed was already gone!

      Report Post »  
  • MiCurmudgeon
    Posted on April 18, 2012 at 4:36pm

    Another job well done by Joe Biden. NOT!!!!

    Report Post »  
  • lukerw
    Posted on April 18, 2012 at 4:35pm

    Magic causes Production… and Obama is working upon the Correct Spell!

    Report Post » lukerw  
  • CatB
    Posted on April 18, 2012 at 4:20pm

    Obama = FAIL .

    Except for bankrupting the country and our children, grandchildren and GREAT-grandchildren. Destroying the country .. right on schedule.

    Report Post »  
    • Shasta
      Posted on April 18, 2012 at 4:27pm

      Well, now he is the five trillion dollar president. 5 trillion dollars of debt in just over 3 years. You better count a few more generations in your list of who is going to pay for this guy’s spending, That is if China doesn’t just repossess our country first.

      Report Post » Shasta  
  • Tri-ox
    Posted on April 18, 2012 at 4:17pm

    Fisker Automotive is officially in “brick” mode.

    Somewhere, a big, fat, sweaty “crazed sex poodle” is sobbing softly into his spa towel.

    Report Post » Tri-ox  
  • NOT A CRAZY
    Posted on April 18, 2012 at 4:14pm

    Got to give Zero props. He sure knows how to destroy America.

    Report Post » NOT A CRAZY  
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