Karma’s A Bitc*
At Fisker Automotive, things are looking dead as its visionary founder had called it quits, employees had either been laid off or furloughed, and they stopped all production of their hybrid car, the Karma. After millions of dollars invested in the company by the government, the company is now on the verge of bankruptcy. People are saying that this was a shaky investment from the start, back in 2009, a $529 million federal loan was granted to them. Two years later, after Fisker repeatedly missed production targets and other deadlines, the Energy Department suspended their loans. After the company missed a large loan repayment on Monday, the federal government uncharacteristically seized $21 million from their cash reserves.
Others government officials, including members of the Senate and the House, complained that standards for awarding federal loans were overlooked in the rush to promote the advancement of green technology. Senator Charles Grassley, a Republican from Iowa. “How did the Energy Department determine Fisker’s potential before writing a check?” and “Was there due diligence, or instead a blind hope that Fisker would produce something useful?”
Written by Kevin Zhang