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Henrik Fisker Responds to False Claims By FOX NEWS

 
1,548 views Oct 3, 2009

Fisker Karma

Fisker Karma

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As we reported yesterday, FOX News presented misleading information regarding funds allocated by the federal government to the company Fisker.  They incorrectly stated how Fisker would use the government loans and mistakenly reported that the money would go to workers producing the vehicles overseas.  Click here to read more about the FOX NEWS mishap.

Fisker CEO Henrik Fisker has responded as he is not willing to idly sit by and let Fox misrepresent the company.  Judging by the tone of some of the comments from Fisker, he is less than thrilled with the story presented by Fox.  Though he never specifically refers to Fox, he does comment that, "While news reports were mostly factual, some ignored or marginalized the truth, or sensationalized irrelevant aspects of the loan and our company. Fisker Automotive would like to present the facts."

According to Fisker, the incorrect news report lead viewers to believe that the company would use funds to create jobs elsewhere.  In fact, the funds will as Fisker said, "Help Fisker Automotive create or save at least 5,000 U.S. jobs."

He went on to verify that the Karma is indeed made overseas, but the story is not that clear cut.  The vehicle was designed and engineered here in the U.S.  65% of its parts (based on cost) are sourced from American suppliers and the company actively searched for a U.S. based company willing to build the vehicle, but came up empty.  However, the next generation Karma will be built in the U.S.

The funds that Fisker received from the federal government do not go towards building the Karma as was reported.  According to the DOE, $169.3 million of the funds will go towards completing engineering work for the Karma.  Fisker has engineering facilities in both Pontiac, MI and Irvine, Calif.

 The remaining funds will support project NINA, a vehicle that will be offered for around $39,900 beginning in 2012.  This vehicle will be designed, engineered, and built entirely within the U.S. at a retooled existing assembly plant.

Furthermore, Fisker went on to state, "The funds will be repaid, with interest, to the American taxpayer.  No DOE funding will be used for overseas operations.  Fisker Automotive expects to export half of its vehicles, the most of any American car company."

Though clearly upset by false news reports, Henrik Fisker responded by merely stating factual information.  Information that is available on the Department of Energy website and is readily viewed by anyone including news organizations.  The use and dispersal of loans is public information and as such available to all. 

Fisker closed by saying, "It is unfortunate how false information can be disseminated and it is our intention to correct as much of it as possible."

Source:  Fisker Press Release

FISKER AUTOMOTIVE RESPONSE TO FALSE REPORTING OF DEPARTMENT OF ENERGY LOAN ANNOUNCEMENT

IRVINE, CA -- Oct. 2, 2009: American automaker Fisker Automotive was recently approved for a conditional loan of $528 million by the Department of Energy (DOE). While news reports were mostly factual, some ignored or marginalized the truth, or sensationalized irrelevant aspects of the loan and our company. Fisker Automotive would like to present the facts.

Fisker Automotive is an American car company based in Irvine, California.

The company's goals are to help restore the U.S. as a leader in the global auto industry and to eliminate America's dependence on foreign oil.

These DOE funds will help Fisker Automotive create or save at least 5,000 U.S. jobs, bring to market affordable, American-made plug-in hybrid vehicles and save more than 821 million gallons of gasoline (43.2 million barrels of oil) by 2016.






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Comments (6)

  1. By Steels Carlyle Posted: 10/3/2009 4:35pm PDT

    “(Please freely repost this)
    This funding for the car companies was all "pay to play", insider, self-dealing. The companies that were turned down had the exact same things in common:
    1. They did not pay hundreds of thousands to buy influence. This is on public record and can be investigation under lobby and cost filings.
    2. They did not make campaign contributions.
    3. Each of the reasons they were told they were turned down were violated with each of the companies that did get money.
    4. They were doing all of the work in the U.S. unlike those who did get the money.
    5. They had a car design and those who got the money were “thinking about doing a car design”.
    6. You could not draw a line from them to a politician or a person who made money or political gain unlike those who did get the money.
    It was a crooked set of deals and the regulatory, law enforcement and voters need to make some noise about this.”
     
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  2. By Rich Posted: 10/3/2009 8:23pm PDT

    To Steels. Where do you get your info? Post a valid source for this so we can check it. From personal knowledge of the subject, I have to say that most of what you posted in pure speculation. Could be partially true, much like Fox broadcasts partial truth.
     
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  3. By Shock Me Posted: 10/4/2009 4:55pm PDT

    OK. Let's review:
    Fisker HQ's in California designs the Karma an $89K assembled from mostly US parts by Valmet in Finland.
    Fisker awarded a loan for $500 million to encourage alternate energy cars and US jobs.
    All true.
    Now given that the $500 million (whenever it arrives) is money they would have had to replace if they did not win and would have needed in order to develop just as quickly as they will with the loan, how is anything said on Fox News not true or misleading?
    If the money was not coming from the government any private investment funds would have also gone to assembly workers and management at Valmet also at least in the near term or it would have replaced funds here that would have been spent there. Even if you do accounting tricks and only say you spend it here, that means it is $500 million you didn't have to borrow elsewhere without such restrictions.
    When (or if) they build their Project Nina-based vehicles here in the U.S. we may see the wonderful secondary employment effects here. In the mean time we'll have to hope they become successful with their current out-sourced assembly model otherwise we won't get the money back.
    I think they have a good chance of doing that but Fox News didn't lie or mislead. Funds are fungible.
     
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  4. By Rich Posted: 10/4/2009 7:54pm PDT

    To Shock Me, Your words may be true,including accountings tricks. But Fox made no reference to Fisker using creative accounting practices to fund workers in Finland. They simply stated that the government is funding the companies production of a vehicle made in Finland. The funds do not go towards production. Also, you are accusing Fisker of using funds illegally. They only get the funds once certain development milestones are acheived. It does not come in a lump sum that keeps the company operational for a long period of time. Finally, the money must be paid back in full with interest added. It's not conditional on their success. Project Nina is underway, the vehicle is only 2 to 3 years away and working on the development and engineering of the vehicle is of course American workers.
     
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  5. By iuball Posted: 10/4/2009 8:45pm PDT

    Did you bother reading the above, realy come on, first your writing itself is impossible to understand or follow. Open your ears and listen again to the FOX slant. If your honest with yourself, there is a motive by FOX on how they reported this, "fair and balanced" come on! Hide the guns Big brothes coming to take them away. Its reporting like this that makes me question all they report. This sadns me personnely! I trusted them!
    http://www.allcarselectric.com/blog/1036052_video-fox-news-criticizes-doe-loans-to-fisker-and-tesla
     
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  6. By broker1152 Posted: 10/23/2009 5:14pm PDT

    Thank God they are building the car outside the US. With the the UAW and total compensation costs of the American auto worker built in, you would end up driving a car the size of my daughters electric Barbie car for $40,000. Wake up. Better yet .buy some stock
     
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