Indy 500 Carb Day Practice To Franchitti; Dixon...
News
Reviews
Guides
Gas Mileage
Car Types

Henrik Fisker Responds to False Claims By FOX NEWS Page 2

 
1,549 views Oct 3, 2009

Fisker Karma

No DOE funding will be used for overseas operations.

Through private funding, and at no cost to taxpayers, the company has already supported hundreds of American jobs by partnering with major auto suppliers to develop the world's first production plug-in hybrid car, the Fisker Karma.

This will put the American auto industry ahead of foreign competition.

The Karma has been designed and engineered in the U.S. with the majority (65% by cost) of its parts sourced from American suppliers. Fisker Automotive searched for a U.S. plant to assemble the Karma, but none were willing or able to build the 15,000 of these advanced vehicles per year Fisker required.

The low-volume Karma will therefore be assembled in Finland by Valmet Automotive, one of the most respected contract auto builders in the world.
The next generation Karma will be built entirely in the U.S.

The Karma is a technology leader necessary to reduce costs for Project NINA, the development of a more affordable, family-oriented plug-in hybrid vehicle to be made in America at a retooled assembly plant in 2012. The resulting vehicle will sell for about $39,900 after federal tax credits.

Engineering on Project NINA has already begun.

Fisker Automotive expects to export half its vehicles, the most of any American car company.

As reported by the DOE, $169.3 million of the loan will be used by Fisker Automotive as the company works with primarily U.S. suppliers to complete engineering work on the Karma. This work will be conducted in Pontiac, Michigan and Irvine, California.

The remaining $359.36 million will support Project NINA and its manufacture of 75,000-100,000 plug-in hybrids per year at a retooled U.S. assembly plant, beginning in 2012.

The DOE loan is conditional. In order to receive the funds Fisker Automotive must meet very specific milestones. Money is disbursed in small amounts only if the company successfully reaches these milestones.

The funds will be repaid, with interest, to the American taxpayer.

Some have asked questions about the cost of the cars.

Any new technology is expensive. Televisions, cell phones, refrigerators and even cars themselves were once too expensive for most. In time, however, costs come down. The same will happen with Fisker's plug-in hybrid electric vehicles.

The DOE loan to Fisker Automotive represents just two percent of the agency's $25B Advanced Technologies Manufacturing Loan Program (ATVMLP), created by Congress in November 2008 to help promote the development of energy-efficient, advanced-technology vehicles.

American cars have long been underrepresented in the global marketplace, especially those in premium segments. The U.S. used to be known for building the most exciting and desirable cars in the world. It is time America is again at the forefront, and gives buyers the choice to purchase a desirable environmentally friendly car.

When it comes to cars, an environmental strategy is no longer an option, it is a necessity. With the help of the Department of Energy, Fisker Automotive is taking action and making an investment in the future. We are immensely proud of what we are doing, and that we are doing it here in America.

It is unfortunate how false information can be disseminated and it is our intention to correct as much of it as possible.

--Henrik Fisker, CEO






Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
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.”
     
    Post Reply
    Vote
    Bad stuff?

  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.
     
    Post Reply
    Vote
    Bad stuff?

  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.
     
    Post Reply
    Vote
    Bad stuff?

  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.
     
    Post Reply
    Vote
    Bad stuff?

  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
     
    Post Reply
    Vote
    Bad stuff?

  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
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Find Green Cars

Go!


More from High Gear Media

 
 
Green Car Reports
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 Green Car Reports. All Rights Reserved. Green Car Reports is published by High Gear Media. Send us feedback. Stock photography by Homestar, LLC.