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Yet Another Gov’t-Sponsored Clean Energy Project Results in Layoffs

Yet Another Gov’t Clean Energy Loan Results in Layoffs

Vice president Joe Biden, left, and Henrik Fisker, CEO of Fisker Automotive announces that the company will produce plug-in hybrid electric vehicles at the former General Motors Boxwood Plant, Oct. 27, 2009, in Wilmington, Del. (Rob Carr/AP Photo)

“In another setback for President Obama’s clean energy loan programs, the recipient of more than a half-billion dollars in federal loans is laying off workers at their Delaware and California operations [emphasis added],” Bryan Tau of Politico reports.

Fisker Automotive, a California-based electric car company, is laying off an “undisclosed number” of staff to try to reserve enough capital in order to qualify for more federal help from the Department of Energy, according to a Delaware state development official.

Wait a minute. The Fisker Automotive?

That’s right, that Fisker Automotive: a company backed by an Al Gore-associated venture capital firm that was awarded a $529 million federal loan guarantee in April, 2010.

This is the same government-assisted automaker that outsourced manufacturing jobs to Finland because, “There was no contract manufacturer in the U.S. that could actually produce our vehicle,” the car company’s founder and namesake told ABC News. ”They don’t exist here.”

Now they are laying off workers in both Delaware and California.

“They’re trying to preserve the cash that they have,” said Alan Levin told the News Journal. “And unfortunately, until they meet the milestone that DOE continues to set … they’re not able to access the additional capital that they need.”

Before announcing the layoffs, the company was working on reopening a closed General Motors plant in Wilmington to produce vehicles — an effort the Obama administration was quick to praise.

“While some wanted to write off America’s auto industry, we said no. We knew that we needed to do something different – in Delaware and all across the nation,” Vice President Joe Biden said about Fisker in Delaware in 2009.

“We understood a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation. Thanks to a real commitment by this Administration, loans from the Department of Energy, the creativity of U.S. companies and the tenacity of great state partners like Delaware – we’re on our way to helping America’s auto industry reclaim its top position in the global market.”

“This is proof positive that our efforts to create new jobs, invest in a clean energy economy and reduce carbon pollution are working,” said Energy Secretary Steven Chu. “We are putting Americans back to work and reigniting a new Industrial Revolution that is paramount for the economic success of this country.”

To date, the company has received $193 million of the total $529 DOE loan to produce two lines of plug-in hybrid cars.

“Our loan guarantees have strict conditions in place to protect taxpayers. The Department only allows the loan to be disbursed as the company meets certain milestones and demonstrates results,” DOE spokesman Damien LaVera said in a statement.

“As has been widely reported, Fisker has experienced some delays in its sales and production schedule — which is common for start-ups.  As Fisker works through those issues and incorporates lessons learned from the production of the Karma, the Department is working with Fisker to review a revised business plan and determine the best path forward so the company can meet its benchmarks, produce cars and employ workers here in America.”

So, let’s see if we got this straight:

  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

Considering that this is yet another government-sponsored clean energy investment that has experienced layoffs, and contrary to what Energy Secretary Steven Chu’s says, Fisker Automotive hardly seems like “proof positive” that the White House’s efforts to create new jobs are working.

(H/T: Weasel Zippers)

Comments (99)

1 2 3
  • Ghandi was a Republican
    Posted on February 7, 2012 at 10:27am

    If our President or Congress people won’t shell out their personal cash for one– What makes them think ordinary Americans will?

    Report Post » Ghandi was a Republican  
    • midwesthippie
      Posted on February 7, 2012 at 12:32pm

      …we can’t buy the car. read this guy (henrik)’s bio. the car is a LUXURY hybrid…hello elitists anyone? Obiden and Obama really care about the average American…

      Report Post » midwesthippie  
    • navyordnance
      Posted on February 7, 2012 at 12:46pm

      “Ghandi was a Republican
      Posted on February 7, 2012 at 10:27am
      If our President or Congress people won’t shell out their personal cash for one– What makes them think ordinary Americans will?”

      We don’t have a choice any more, they’ve had their hand in my pocket for so long, I’ve a hole where my wallet use to be. Our money to them, is theirs on ours, we earn for the state not for ourselves and family.

      Report Post » navyordnance  
  • ROMANS 10-9
    Posted on February 7, 2012 at 10:24am

    .

    I VOTED for
    RICK SANTORUM
    for President!

    FIRE OBAMA!!!

    Report Post » ROMANS 10-9  
    • OhSuzieQ
      Posted on February 7, 2012 at 11:06am

      I am with YOU Romans!

      Report Post » OhSuzieQ  
    • IDConservative55
      Posted on February 7, 2012 at 11:11am

      Not only should Obama be impeached but he needs to be tried for crimes against America.

      Report Post »  
    • RejectFalseIcons
      Posted on February 7, 2012 at 3:46pm

      Wait, Rick Santorum isn’t Obama? Could have fooled me, from looking at his record.

      Oh wait, the only difference between Obama and Santorum is that Santorum is also a religious bigot, not just a socialist elitist bigot. Grats.

      Report Post » RejectFalseIcons  
    • Bible Quotin' Science Fearin' Conservative American
      Posted on February 7, 2012 at 5:39pm

      Please, morons. If Obama should be tried for crimes against America then your boy Bush should get the chair.

      Report Post » Bible Quotin' Science Fearin' Conservative American  
  • mtnhimike
    Posted on February 7, 2012 at 10:19am

    Firing people to get more of our taxpayer money to waste on a car that will never sell.

    What a joke Obama and his Adm. is now and down the road if he is re-elected.

    Report Post »  
  • RightPolitically
    Posted on February 7, 2012 at 10:17am

    I’ve reached the point where I now believe the only way America will make up to the fact that the federal government has trampled our freedoms and free enterprise in particular is to have the whole damn thing collapse so we can rebuild the country from the ground up. This is another politically motivated PC green energy project doomed to fail. What gives Obama the right to throw OUR tax dollars down the drain like this? Nothing!

    Report Post » RightPolitically  
    • RightPolitically
      Posted on February 7, 2012 at 10:33am

      Wake up, not make up (in my piece above.) Sometimes I’m so damn angry at this stuff that I fail to proof-read, as was the case with this one. However, if you’ll permit me one more observation: Anything that bafoon Joe Biden is involved in IS DOOMED TO FAIL. It’s a given!

      Report Post » RightPolitically  
    • Mateytwo Barreett
      Posted on February 7, 2012 at 11:10am

      By jove! I do believe you are “getting it”sir! The only issue is who will be involved in the restructure. As far as who controls the “purse strings”. Historically, the congress has set the budget with accomanying earmarks. Thankfully, since we have no budget, and no strength in congress the direction has come from the WH. Of course the congress COULD object,but that would be seen as obstructionist. Besides all those people have to “get along”. now don’t they! So back to the restructure- – - If you HAD three branches of government, and one suffered from ED, and the judicial was preoccupied with that massive court load. What is it- 2 cases so far this year? That would leave only the executive branch “to do the heavy lifting”. Sounds like a plan to me!!

      Report Post » Mateytwo Barreett  
  • marthasusan40
    Posted on February 7, 2012 at 9:47am

    ‎…”our Founders set up a system that makes it pretty difficult to get done what I want to do?”….Obama to Matt Lauer after his interview on Sunday? Sounds more and more like a dictator or king. This man is a lunatic and ego maniac. He needs to be voted out. 7 Million Catholics are banning together to fight the oppression that this administration is trying to push down our throats. Please sound the alarm. If you have been silent, its time to wake up.

    Report Post »  
    • marthasusan40
      Posted on February 7, 2012 at 9:49am

      Sorry, I should have said 70 million catholics.

      Report Post »  
    • sWampy
      Posted on February 7, 2012 at 9:53am

      Liberals are plain evil, we saw this week where Supreme Court Justice Ginsberg said Egypt should follow the example of South Africa, that went form one of the richest nations on earth, to a 3rd world banana republic with in 10 years of becoming a liberal socialist democracy.

      Report Post »  
  • seljo1701
    Posted on February 7, 2012 at 9:46am

    The ironic part is if the admin had let GM/Chrysler go through bankruptcy *LEGALLY* they may have sold off a factory or two at a bargain that this smaller co. could have bought IN THE U.S. and EVERYONE would have benefited! This admin is so blinded by Marxist idealogy, they are getting in their own way trying to push “green” energy. Idiots. Econ 101 would do wonders. Too bad Obummer only took Marx 442 in school.

    Report Post »  
    • midwesthippie
      Posted on February 7, 2012 at 4:08pm

      …well done SELJ…the fact that this guy fisker isn’t even an American adds insult to the injury looking at our economy thru the marxist prism.

      Report Post » midwesthippie  
  • DD313
    Posted on February 7, 2012 at 9:46am

    Fisker, the company that got half a billion in “fiat” fed printed money, decides it can’t effectively produce its admittedly cool looking electric vehicles in the USA, so it chooses Finland instead. The jobs it temporarily created in Delaware and California were most assuredly counted and touted as demonstrative of the administration’s success. Their loss will be sorely missed by Joe Biden,
    overlooked by the press, and downplayed by the current Press Secretary.

    Report Post » DD313  
    • carbonyes
      Posted on February 7, 2012 at 10:08am

      And the list goes on and on and on. it will be never ending if we let this Imposter-in-Chief have another four years. If he should get reelected, that old song, “You Ain’t Seen Nothin Yet”, will come back and rise to the top. America will never be the same, and you will not recognize her. As Colonel West has said, Take Obama, Pelosi and Reid and send them no good ba$tard$ packing with their ideology and agenda and send to the bottom of the Ocean, or to Hell, if need be.

      Report Post »  
  • Outlaw_Josey_Wales
    Posted on February 7, 2012 at 9:40am

    Will the Obama administration buy me a yard ornament windmill?

    Report Post » Outlaw_Josey_Wales  
    • DD313
      Posted on February 7, 2012 at 10:20am

      Only if it has a generator that is hooked into the Green Grid.

      Report Post » DD313  
    • Mateytwo Barreett
      Posted on February 7, 2012 at 10:28am

      Uh-yeah! I have an consulting firm that can help you with that. First find your self a female, lesbian, disabled hyphenated person, with at least two kids to head up your application.

      Report Post » Mateytwo Barreett  
  • Hrothgar
    Posted on February 7, 2012 at 9:34am

    Another stellar investment from your federal government!!!

    Report Post » Hrothgar  
  • piper60
    Posted on February 7, 2012 at 9:31am

    socialist variation on cash for clunkers.

    Report Post » piper60  
  • bandi9
    Posted on February 7, 2012 at 9:31am

    if one tally’s the boondoggles/failures of this administration, how in the world can he have any semblence of a chance at being re-elected?? the man’s failures are fact, but what they claim as successes are fairy tales, i.e, “we saved 3 million, or whatever, jobs. if we hadnt done tarp the situation would be much worse.” absolutely nothing verifiable!

    Report Post »  
  • zoro51
    Posted on February 7, 2012 at 9:27am

    the SOCIALIST n his cronies whom he PAYS OFF.. arent creating NO GREEN JOBS.. but getting away wiht FUNDS so easily given to them.. yet when WE ask for help were given the run around n BS.. while companies like these FAIL under SOCIALISM.. FIRE EVITA OBAMA TAX N SPEECH 25th amend NOW NO waiting FIRE OBAMA NOW SAVE AMERICA.. these so called green jobs a SOCIALIST….PLOY! HOW much more proof do u need.. FIRE OBAMA NOW

    Report Post » zoro51  
    • Gary Fishaholic
      Posted on February 7, 2012 at 9:47am

      Obama needs to be fired now I don’t think we can wait! It will be to late!

      Report Post » Gary Fishaholic  
    • carbonyes
      Posted on February 7, 2012 at 9:59am

      Obama’s foundation is crumbling right under his feet. Could not happen at a better time. Do I hope that Obama succeeds? Absolutely not! Why? For if he “succeeds” America and the American people will fail. Succeed to Obama means promoting his ideological agenda, which is Socialism/Communism, i.e., spreading the wealth, not spreading the opportunity. For by spreading the wealth, the Deceiver-in-Chief will continue to expand the Takers through increasing the welfare rolls and commensurately their benefits.

      The Liar-in-Chief wants to grant citizenship to Illegal immigrants, promotes abortion and its’ supporting organizations, champions cap and trade, but temporarily has placed it on the back burner, destroys our military by kowtowing to Removing “Don’t ask, don’t tell.” from the armed forces, Kowtows to the Muslims, of which he profoundly is one, not opinion, fact. The Bamster, apologies to the hamsters, has so many things wrong with him that he is in no way beneficial to the future of this country or her people.

      Even the black Americans who swoon under Obama’s spell are too blind to see that they are following the Pied Piper over the cliff with their acceptance of destructive welfare and the welfare mentality, instead of rising up and taking their place along every other American at the table of free opportunity.

      Obama’s cronyism to his supporters in solar energy which are precipitously failing, and the electric car, which nobody wants, further points to hi

      Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on February 7, 2012 at 9:26am

    Another fine example of Political Cronism at its finest in the Chigago tradition.

    Report Post » Snowleopard {gallery of cat folks}  
  • Outlaw_Josey_Wales
    Posted on February 7, 2012 at 9:23am

    Obama’s TV ad “created 2.4 million clean energy jobs and raising rapidly”

    Report Post » Outlaw_Josey_Wales  
  • Blackhawk1
    Posted on February 7, 2012 at 9:22am

    The EPA has found a work around for cap and trade. The new CAFE standards they propose will kill the automotive industry in this country. The EPA needs to be the first agency shutdown in 2013 when Obama and his greenie wienies get the boot.

    Report Post » Blackhawk1  
  • ares338
    Posted on February 7, 2012 at 9:18am

    Green energy projects are nothing more than systems to funnel cash into a few persons coffers. We have adequate petroleum energy here to last over 600 years according to some experts. It galls me that we made that giant sand box called Saudi Arabia rich beyond belief.

    Report Post » ares338  
  • oldguy49
    Posted on February 7, 2012 at 9:14am

    think what this would have cost us if they had got cap and trade passed……….can you even imagine how bad it would be now…………………………….

    Report Post »  
  • SpankDaMonkey
    Posted on February 7, 2012 at 9:08am

    .
    OK People Listen UP!!!!!!!!!!!!!!

    There is No such thing as CLEAN ENERGY!!!!!!!!! Cold Fusion does not exist in a commercially viable form yet……….

    And there is No such thing as Man Made Global Warming either………….

    If you believe in either Please send a check to SpankDaMonkey. I don‘t know how much Stupid cost’s, so make it a big one……….

    Green is the New Wussy….

    Report Post » SpankDaMonkey  
  • AJAYW
    Posted on February 7, 2012 at 9:07am

    Obama’s made another step in his goal distroying our country. As he said Sunday he’s not done yet.

    Report Post »  
    • Blackhawk1
      Posted on February 7, 2012 at 9:19am

      Oh He’s done, He just doesn’t know it yet.

      The EPA sure is going to be surprised when in 2013 they get shut down and shown the door. Remember no matter which Republican replaces Obama, the congress we elect (mostly Tea Party) can push him to cut all the useless Federal Govt agencies simply by providing no funds for them.

      Report Post » Blackhawk1  
    • AJAYW
      Posted on February 7, 2012 at 12:15pm

      Blackhawk1
      We can only pray your right. I don’t think this man will leave office peacefully if beaten in the election. He will call for riots on his behalf. This man is evil and will encourage unrest if he thinks he is being defeated. Its gonna be a very ugly November if not before.

      Report Post »  
  • discus02
    Posted on February 7, 2012 at 9:05am

    Cut taxes, take an axe to the Federal Government. Only pay the Politicians when they at work not on vacation!

    Report Post »  
  • Iwant sprinkles
    Posted on February 7, 2012 at 8:57am

    AArggh! Is anyone keeping a tally of the number of jobs and money these government funded green jobs has lost? Seriously, this is comical.

    Report Post »  
    • Gonzo
      Posted on February 7, 2012 at 9:05am

      If they tally these losses like they tally unemployment numbers, this program has been a huge success! Where’s Clint Eastwood? Let’s make a commercial about it!

      Report Post » Gonzo  
  • Arc
    Posted on February 7, 2012 at 8:55am

    Hmmmm I wonder if these INFLATED employment figures include the INITIAL HIRING of all these GREEN JOBS? Nahhhh…. this is the most transparent administration ever. Remember when Obama opened up his academic records? And how about all those “late Friday” news dumps??? So enlightening.. And to cap the stack, did you see all the debate on C-SPAN about all the GREEN ENERGY projects, the Super Duper INEXSPENSIVE HEALTHCARE bill. I remember the most open discussions about those deals with PETROBRAS, the rowdy parties that followed all those BI-PARTISAN deals that were struck.

    This is a GREAT COUNTRY……a shame that some politicians take it for granted……….oh and by the way……don’t get too COMPLACENT……….only 9 MONTHS remaining on your subscription.

    Report Post » Arc  
  • beekeeper
    Posted on February 7, 2012 at 8:52am

    Becket, I think you got it a ‘bit’ wrong – Fiskar isn’t looking for MORE federal funding (in addition to the $529M they already were awarded), they are trying to meet milestomes to keep drawing against the $529M… They’ve already taken $193M of the $529M, they need to lower costs, incrase their cash position to get some more of their previously approved $529M.

    But, one thing is clear – if V.P. Joe Biden comes to your company and praises the work you are doing, update your resume immediately. He is a harbinger of bankruptcy!

    Report Post » beekeeper  
  • ColoradoMaverick
    Posted on February 7, 2012 at 8:44am

    The GOP had better take off the gloves and go after Obama on each and every one of these failures. McCain lost the election because he was soft on Obama and did not want to appear “racist” but going after him. Big mistake for the GOP last time. You had better learn from this and come out with your guns blazing this time. Whoever ends up being the GOP nominee needs to demand that Obama agree to at least 20 debates and then go after him for every single bad decision, every corrupt deal, every questionable association with radicals, every executive order made, everything. If he refuses to agree to the debates, then have them without him there. Put a cardboard cut out of Obama in his place and make it a complete spectacle for the country to see that Obama has no back bone to face his competition.

    Report Post » ColoradoMaverick  
    • Gonzo
      Posted on February 7, 2012 at 8:59am

      If you’re counting on Romney to be a bulldog, you‘re going to be disappointed I’m afraid. Unless you considered Bob Dole to be a street fighter.

      Report Post » Gonzo  
    • NOTAMUSHROOM
      Posted on February 7, 2012 at 9:16am

      Gonzo
      Correct! That’s why we need an inglorious bastard like Newt to hand the Marxist in Chief his ass. No more Mr. Nice Guy GOP for me. Make Ron Paul the Sec of the Treasury and John Bolton Sec of State. I don’t know what post Santorum should have but give him one. Make Sarah Palin Sec of Energy. Then gut the Federal workforce. This is my dream team!

      Report Post »  
    • Blackhawk1
      Posted on February 7, 2012 at 9:26am

      You forgot to make Michelle Bachman the Sec of Health and Human services to get rid of the abortion mill called Planned Non-Parenthood.

      Report Post » Blackhawk1  
    • Mateytwo Barreett
      Posted on February 7, 2012 at 10:16am

      @ Gomzo
      Romney a bulldog?!?!? Doncha hate when your jaw muscle spasm from laughing too hard!!

      Report Post » Mateytwo Barreett  
  • South Philly Boy
    Posted on February 7, 2012 at 8:42am

    Fed Govt gets TOO MUCH MONEY

    Report Post » South Philly Boy  
    • Hiswill
      Posted on February 7, 2012 at 9:29am

      Then they give it away to pretend green companies.

      Report Post » Hiswill  
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