Fisker Automotive: Obama’s Bad Karma

Tuesday, April 23, AD 2013

 

 

Hattip to Mary Katherine Ham at Hot Air.  Back in 2008 Obama stated that if elected he would create five million green jobs over the next decade.  At this stage it becomes monotonous to bring up the fact that the promises of Obama bear as much relationship to reality as a lightning bug does to lightning, but the failure of Fisker Automotive can be taken as a symbol of the failed economic policy of the Obama administration.

In 2009 the Obama administration authorized a half a billion loan guarantee to Fisker, and about 193 million was spent.  When Fisker opened a plant in Delaware, Veep Biden was on hand.  The car company is now reeling to bankruptcy after spending 600K on each 100K Fisker Karma it sold:

Fisker Automotive Inc. spent more than six times as much U.S. taxpayer and investor money to produce each luxury plug-in car it sold than the company received from customers, according to a research report.

The Anaheim, California-based company made about 2,500 of its $103,000 Karmas before halting production last year, disrupting its plans to use a $529 million U.S. loan to restart a shuttered Delaware factory owned by the predecessor of General Motors Co. (GM) The Karma was assembled in Finland.

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Fisker has spent $1.3 billion in taxpayer and venture capital money, or $660,000 for each car it sold, the report said.

Fisker stopped manufacturing cars late last year and fired three quarters of its remaining workers April 5. The company’s first repayment of $20.2 million on the Energy Department loan is due April 22, the report said.

Tony Knight of Sitrick & Co., an outside public relations agency representing Fisker, declined to comment.

A U.S. House panel is scheduled to hold a April 24 hearing on Fisker and its government financing. Invited witnesses include co-founder and namesake Henrik Fisker, who resigned last month; CEO Tony Posawatz and Chief Operating Officer Bernhard Koehler, who helped start the company whose customers include singer Justin Bieber and actor Leonardo DiCaprio.

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2 Responses to Fisker Automotive: Obama’s Bad Karma

  • A123 Systems…….Our cost……$249 Million.
    Solyndrd LLC……..Our cost……$535 Million.
    Fisker and more govt. spending. ???
    Seems as though the thug from Chicago could save U.S. money if he step away from the cash register.
    Bankruptcy not Barack is his first name.

  • Wonder what the compensation for the top 10 people in this bankrupt company are. Dear Lord help me, I hate to be a cynic, BUT I also wonder what their relationship to top people in the current administration are.
    Saw the first ever Fisker Karma, GA plate “ECO ROD” [which I thought was cute} on the road day before yesterday. Beautiful car! Then I read yesterday’s WSJ editorial, then this blog. Woe is me, wow is me.
    AMDG,
    SYW

Klavan, Smith and Friedman On Crony Capitalism

Wednesday, November 28, AD 2012

Ah the next four years are going to be so enjoyable.  When it comes to crony capitalism Adam Smith said it well:

“The proposal of any new law or regulation of commerce which comes from this order [that is, ‘those who live by profit’], ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.”

Milton Friedman was eloquent on the subject of government supporting private enterprises:

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2 Responses to Klavan, Smith and Friedman On Crony Capitalism

  • This adminstration will serve as an example for generations to come of the havoc that can be wreaked on an economy through government folly.

    Just to point out the principal promoters of crony capitalism (Barack Obama, James Johnson, Franklin Raines, Jamie Gorelick, Steven Chu, and Timothy Geithner) include not one civil servant. The legal profession, academe, the PR biz, and that weird netherworld where everything seems to run on connections produced this crew.

  • Oh, cannot forget Barney Frank (who has not had a normal job since 1968) and his boi, Herb Moses.