Fisker and the DOE Loan Guarantees

Discussion in 'PHEV or Plug-in Hybrid Electric Vehicle' started by xcel, Nov 7, 2011.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    Although this is kind of old news, Fisker has its own views regarding the DOE Loan Guarantees.

    There have been stories in the media today commenting on the Department of Energy (DoE) loan guarantees Fisker Automotive received. We wanted to give you some more information.
    • The Fisker Karma is the world’s first environmentally-responsible luxury sedan with a unique hybrid electric powertrain developed by a highly-skilled team of engineers and designers in America.

    • Not a single dollar of the DoE loans has been, or will be, spent outside of America. All expenditures are reviewed by PwC (PriceWaterhouseCoopers) on behalf of the DoE.

    • After receiving the DoE loan, Fisker made it a priority to create U.S. jobs which led to the purchase its own assembly plant in Delaware where we plan to establish production of our second, higher volume, line of vehicles (Project Nina).

    • There are currently over 100 workers reconfiguring the Delaware plant so that Fisker will be ready to begin hiring a skilled hourly workforce to producing its Nina platform vehicles in the U.S. for sale around the world. Many of these Delaware costs are covered by the DoE loans.

    • For the Karma program, the DoE loan money was used solely in the U.S. to fund design, engineering, and integration work.

    • Only private equity financing, of which we have raised over $600 million so far, has been used for costs not covered by the DoE loans, of which only a small part is production costs in Finland.

    • The majority of our private funding has been used to create jobs, including 650 people at Fisker’s headquarters in California, over 100 at the Delaware plant and many more at various suppliers throughout the U.S.

    • At the inception of the company, Fisker explored the possibility of producing the Karma in the U.S. However, there are no contract manufacturers like Valmet in the U.S., and none of the established domestic automakers were willing to partner with Fisker to provide a manufacturing option in the U.S. that would work for the Karma program. Our assembly arrangement for the Karma was in place before the DoE loans were approved, and has been widely reported on since 2009.

    • There is no link between Fisker Automotive and any political party. We are politically neutral – our focus is on building luxury electric vehicles.

    • More than 45% of the components of the Fisker Karma sedan are manufactured by approximately 40 suppliers located in the U.S. Some of our biggest suppliers in the U.S. include A123 Systems (Li-ion battery), General Motors Springhill Engine Plant (gasoline engine), Goodyear (tires) and TRW (regenerative braking system).

    • The Fisker Karma is the world’s first environmentally-responsible luxury sedan with a unique hybrid electric powertrain developed by a highly-skilled team of engineers and designers in America.

    • With the help of DoE loans, Fisker has already created hundreds of U.S. jobs, with thousands more in the near future. Ultimately Fisker is a high-tech American car company that we’re confident will be an American success story to be celebrated.
    The only item not explained from the company’s standpoint in this release is when a multinational receives grants or loans from or within a given country, it is $’s they do not have to spend out of the corporate coffers for those projects within that country thus boosting earnings, profits or changing spending priorities with respect to the rest of their global scope. When a company like Fisker receives loan or grant $’s from the US Government for a US based production facility, it allows them to spend their limited corporate funds on overseas production facilities or marketing activities as is the case of the Karma currently.

    This is not a condemnation of DOE loan(s) or grants but simply the basis for a global entity to use fungible funds taken from one area of the globe to pay for corporate priorities in another part of the globe at the expense of the DOE or Federal Government itself.

    I wish the company every success as it is a sharp looking car for the very well to do but at the same time, we have to be vigilant that DOE funding is being spent wisely and in the case of Fisker, it appears that it is.

  2. PaleMelanesian

    PaleMelanesian Beat the System Staff Member

    It does seem that way. They actually have a product being sold, and it is as described - a high performance, range-extended EV. That it gets poor mileage on gas is unfortunate, but not horrible. Compare to any competing vehicles and it looks amazing.
  3. Right Lane Cruiser

    Right Lane Cruiser Penguin of Notagascar

    Fisker will probably sell every one they can manufacture... but I wonder just how many that will be?
  4. msirach

    msirach Well-Known Member

    Me too! I only wish they produced a car that looked like the Karma that we could afford. I can only see the Karma as a nighttime "go to the restaurant or Sunday driver. Most that can afford the Karma won't be affected by $5 per gallon or more gas.

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