Another Energy Loan Scandal?
By bobmnu
@bobmnu (8157)
United States
October 22, 2011 10:48am CST
It seems that the energy department has granted a loan to Fisker Automotive to develop and produce an electric car. It seems that Fisker Automotive received a $529 million loan and is now going to build the car in Finland. They claim that the money was used to design the car but the 500 jobs making the car will be in Finland.
http://www.newsmax.com/Newsfront/loan-Finland-cars-energy/2011/10/21/id/415331?s=al&promo_code=D4FE-1
It should also be noted that this car will cost the government even more due to tax credits and incentives for leasing or purchasing this car. This car is a high performance sports car designed for the very rich with a price tax of close to $100,000. It does go 32 mile on pure electricity and get a 52 mpg-equivalent rating when using electric and gets 20 mpg when using gasoline. Compared to the Chevy Volt's 93 mpg-equivalent and the Nissan Leaf 106 mpg-equivalent. But it can do 0-60 in 5.9 seconds.
http://reviews.cnet.com/8301-13746_7-20122884-48/fisker-begins-selling-karma/
Is this they type of industry we should be loaning money to so they can develop toys for the ultra rich and creating jobs overseas?
1 person likes this
3 responses
@thegreatdebater (7316)
• United States
22 Oct 11
Bob if you actually read the article you will see that his is just one model that the company is building. The loan that they received was NOT to produce this vehicle, but a four door sedan that they will build in the United States. Is this company NOT allowed to make other models in other countries?
@bobmnu (8157)
• United States
22 Oct 11
The company is not allowed to spend money in other countries. So just like the Volt a few engineers design a car then it is outsourced to other countries creating more jobs there. It seems that we are developing products and then outsourcing the jobs. What are the unemployed to do. College graduates have around 4% unemployment while the national average is 9%+. It seems we are providing jobs for those who are able to get jobs and not those who are truly unemployed.
The car funded is the Karma which is the almost $100,000 sports car that is not really efficient. Is this what the Government should be investing in?
@thegreatdebater (7316)
• United States
23 Oct 11
Bob, do you know 100% where the funding for THIS car came from? According to the company, and the White House it is a totally different project, and has other funding. The problem with funding PRIVATE corporations is that they are tied to this country, and have no restrictions on where they spend their money (unless it is expressly written in the loan papers). I hate to tell people this but corporations have no responsibility to ANY country, they only have a responsibility to their shareholders. They don't care about the United States, and they don't care how well the country does as long as they make money.
@matersfish (6306)
• United States
23 Oct 11
It's very true that this car could have been funded "privately," but that brings up two points.
1) It's the money pot theory. If I make 500 bucks from a job and then get loaned 500 bucks, I have 1000 bucks. If I then spend 500 to pay a bill, whose money am I spending? The money I earned or the money I borrowed?
And that ties in with the second more important point.
2) If they can afford these types of projects privately, why are they accepting over half a billion in loan money?
There's stink on it. At the very least, it's gambling by government.
If you see nothing wrong with that picture, then fine. But can you fault someone else for scratching their head? It certainly makes me scratch mine.
I mean, we're gambling with taxpayer dollars that a company like this is going to, what, change the future? I think the bigger point isn't what the company is doing now but rather that we're giving money away hand over fist as if we can afford to do so.
@matersfish (6306)
• United States
22 Oct 11
The way our government just throws money away like it's worthless, it's no wonder that we have so many people with a strong distrust of government, and also so many people wanting government to give money to them.
I mean, hell, if they're giving away money so car manufacturers can build electric cars that only 1% of the population can afford, I can't really fault that other "99%" for wanting some free money too. Of course, they're bickering about Wall Street being the bringer of all ills, but if they only looked harder...
Insane.
@Taskr36 (13963)
• United States
22 Oct 11
They're yelling at Wall Street because they can't bring themselves to blame Obama or the Democrats responsible for this crap. I GUARANTEE that if Bush were in office and republicans controlled the house and senate Wall Street wouldn't even be a blip on the map as these morons would be blaming republicans. That's the way left wing activists are. They are so sold on their party affiliation that they can't blame them for even the most blatant failures.
@Adoniah (7512)
• United States
23 Oct 11
There may be more to this story than meets the eye...China has started rationing "Rare Earth Minerals" exported to the US...They are not doing this to other countries. Without these minerals, Lithium batteries, computers and Electric cars cannot be produced. Since Finland can but as much of these minerals as it needs, it may make bizarre sense to Hussein O to outsource this.
I do not agree with this, but I think this may be the motive behind his latest stupidity.
