Federal government loans were made to the Fisker Automotive Company to produce an all-electric car. Recently released documents show that the Obama Administration continued to make loans to the company even after the company missed a crucial production target in 2010 that was required as part of a eight billion dollar government loan program.
The Fisker Company received an additional $32 million in government funding when in fact the government should have suspended all loans to the company according to Energy Department documents. The administration hid this fact until after the 2012 election.
In a previous blog, I wrote about the company’s efforts to build and sell the $100,000 Karma hybrid car. The company sold less than 2,000 cars; furthermore, the company reopened a former General Motors factory in Wilmington, Delaware to produce the cars. The plant was never completed and never produced any cars. Delaware was considered a strange choice at the time except that it was the home of Vice-President Biden.
From the beginning alarm bells should have been ringing because the Fisker Company had financial and production problems at the outset. The company laid off three-quarters of its workers. Its cash reserves have almost vanished. It has not produced a car since last summer and like Solyndra, it is expected to go bankrupt.
“The Obama administration owes the American taxpayer an explanation as to why this bad loan was made in the first place, and what they are going to do to minimize the loss that taxpayers face,” said Representative Jim Jordan, R-Ohio, Chairman of the Oversight Committee on Economic Growth and Regulation.
It seems that Obama’s plans are to drag the American economy down through stimulus programs that don’t work and loans to companies that don’t produce viable products. This is only the tip of the iceberg.