China billionaire eyes US market after snatching up taxpayer-backed Fisker...ridiculous

This is ridiculous...so the US taxpayers bailed out Fisker only to the tune of $192 MILLION dollars, only to have them go bankrupt and sold at GOVERNMENT auction to China....not only that but they also acquired A123 Battery corporation in the same manner which holds NUMEROUS patents in the battery industry.

Way to go current administration! Keep wasting out money and GIVING our businesses to foreign countries......

And yes.....I do blame this on Obama and the current administration.....such a huge FAIL it is ridiculous.

Fisker Automotive -- the U.S. electric car company that failed to repay roughly $139 million in federal loans before going bankrupt -- is now owned by a Chinese company eager to unleash its cut-rate acquisition on the American auto industry.

The company’s assets were acquired earlier this year by China's biggest auto parts supplier, Wanxiang Group, for $149.2 million in a U.S. bankruptcy auction.

The company reportedly could start selling Fisker’s ill-fated Karma plug-in car later this year in the United States and Europe.

Billionaire company founder and Chairman Lu Guanqiu has aspired to get into the auto industry since the 1980s and the electric-car business for roughly the past 15 years.

And the acquisition of Fisker and its battery supplier, A123 Systems, which each came with key patents, should make Guanqiu's company well positioned to compete.

Wanxiang acquired A123 Systems in a 2012 bankruptcy sale, after the company failed to repay millions to the same federal loan program that helped Fisker.

Source

Most products in the US say made in China .Now US will become China ..I suppose they do have many USD's . Best place to cash them in I guess seeing Russia wont be interested in them . a reply to: Vasa Croe

originally posted by: the2ofusr1
Most products in the US say made in China .Now US will become China ..I suppose they do have many USD's . Best place to cash them in I guess seeing Russia wont be interested in them . a reply to: Vasa Croe

Yes they do, but what really sucks the most about this is that it was $192 Million in US taxpayer dollars that went to this company because of the Obama administration. They are simply throwing away our hard earned tax dollars. I don't know anyone that would throw their hat in the ring for odds like that.....even stock market odds.

Pockets were surely lined here and, yet again, WE THE PEOPLE get screwed. If the government is going to take out money that we earn, then why don't we have a vote in where it's invested.....this was obviously a horrible move. And on top of that, if they are going to invest the money we earn and something does make it big, why do we not see a return?

So over this administration and it's BS....they just plain SUCK...simple as that.

originally posted by: Vasa Croe
Yes they do, but what really sucks the most about this is that it was $192 Million in US taxpayer dollars that went to this company because of the Obama administration.

The United States Taxpayer should not be forced into picking winners or losers in the private sector. I am more than capable enough in choosing my own investment strategy and if your business model is not viable it should fail without asking the Taxpayer to bail you out.

originally posted by: AugustusMasonicus
if your business model is not viable it should fail without asking the Taxpayer to bail you out.

Unless you are a bank, or an energy company. There, corrected that for ya!

ETA: Or connected with transport.

a reply to: AugustusMasonicus

That would be how a free market operates and what gives that system such strength and resilience.

Would't it be nice to live within a free market system again? I have to explain to my kid what it was like, like my Grandfather explained to me what World War II was like to live through. (sigh)

SO much lost...so quickly.. So long a road to get back to where we were Sept 10th, 2001.

Oh course, at this rate, we'll get "back" there on toll roads born of public/private partnership with overseas concerns, in a car made in Japan, with gas from Venezuelan refineries, listening to music on a stereo made in Taiwan.

America the beautif....err...mortgaged. (We'll work on that beauty part again someday, I hope)

What did you expect. You have send all your manufacturing to China and then buy back finished products. Where do you think the most money is made? What did you think they gonna do with all that money? America proof that they can not do anything cost effective re cheap. Why do you think the immigrants is taking over all your jobs? They know how to live within their means. They do not want 3 cars a huge house and a 6 figure salary when they leave school. That is why.

a reply to: Wrabbit2000

Would't it be nice to live within a free market system again?

Just curious when this free market of yours existed? In the U.S., the government has been regulating, incentivizing and subsidizing since the beginning. What would you call the Tariff Act of 1789?

I've never understood why people believe that an "unregulated free market" is the answer to everything. As though unrestricted, unregulated commerce instantly produces an abundance of liberty and market forces, basically the aggregate influence of decisions made by buyers and sellers, will lead to a libertarian utopia. There's no historical evidence of this being the case. The average consumer is uninformed, unconcerned and brainwashed by advertising from birth. Corporations are sociopathic profit generating superorganisms. I'm all for a reduction in subsidization but I'm not going to promote global feudalism.

a reply to: theantediluvian

Oh... I don't imagine..I read the definitions by those who do this for a living and I use the term free market as it's defined by the society we live in..not the mystical imaginings we like to think it should, could or would be.

Technically we still DO live under a free market. Depends on scale, I suppose.

I can FREELY and without permission from anyone whatsoever, open a business tomorrow in a storefront with my own name hung on the door for the world to come do business with or utterly ignore. I'll need a lease payment, business permit and tax ID (which isn't permission. It's tracking to take my money later) and I'll need the sheer guts and gumption to give it a shot without a safety net.

That..defines a free market and we absolutely DO have that now on the micro level. Unfortunately, it's been a few years ...or decades..since we've seen it on the macro level.

However, the bailouts to nationalize by a different name, the regulation to cripple those Government doesn't favor as a specific tactic, and the blatant and open manipulation of markets and business like it's become a spectator sport isn't something I knew as an American in this nation my entire life. Not even MOST of my life.

Most of this obscene crap we jokingly call economic theory and planning is a rather new twist in relative terms to our self defeating nature. This twist might just get us there this time, too.

originally posted by: neversaynever
What did you expect. You have send all your manufacturing to China and then buy back finished products. Where do you think the most money is made? What did you think they gonna do with all that money? America proof that they can not do anything cost effective re cheap. Why do you think the immigrants is taking over all your jobs? They know how to live within their means. They do not want 3 cars a huge house and a 6 figure salary when they leave school. That is why.

you say "you". I sent nothing to china. I wanted manufacturing to stay here. I want all the oil refineries to stay here. I wanted all along to buy american. I boycotted walmart for over 10 years. I want a stable economy based upon cooperation in my community. I never asked for cheap plastic goods that break and rust in a mere few weeks or months. I want things like craftsmen tools that were made to last lifetimes, made so well they had lifetime warranties. So well made they were passed from generation to the next generation I want garments that last like levi's 501 jeans, again.
the immigrants you champion came here for better pay and jobs. They did not come here to show me how to live a 3rd world lifestyle or teach me a lesson on what not to buy. Personally, I only want what I need and my whole life exemplifies this.
I think you read and believe too much in your anti amerikan propoganda. You truly do not know what I think, feel or desire in my life or what my true aspirations for me or my country. Sorry if your life sucks so bad you get joy in misrepresenting me and my countrymen in a planned depression that will leave 10's of millions people penniless and homeless so that we all can live a 3rd world lifestyle together

originally posted by: theantediluvian
a reply to: Wrabbit2000

Would't it be nice to live within a free market system again?

Just curious when this free market of yours existed? In the U.S., the government has been regulating, incentivizing and subsidizing since the beginning. What would you call the Tariff Act of 1789?

I've never understood why people believe that an "unregulated free market" is the answer to everything. As though unrestricted, unregulated commerce instantly produces an abundance of liberty and market forces, basically the aggregate influence of decisions made by buyers and sellers, will lead to a libertarian utopia. There's no historical evidence of this being the case. The average consumer is uninformed, unconcerned and brainwashed by advertising from birth. Corporations are sociopathic profit generating superorganisms. I'm all for a reduction in subsidization but I'm not going to promote global feudalism.

Ahhhh, you are refering to banking without saying banking. My plan to save everything is to unicorporate. I hate the big corporations and to me they produce the same results as any socialist or communistic governments. All the power in the hands of a few elites. Kill the corporate influence. Unicorporate, buy local. Focus on producing a product that you are proud to sell. Why do you equate free markets with corporations? Thats a strawman to me

Just keep giving our politicians money, they will waste it. It would be nice if we could get a congress that was a little more conservative and actually checked out companies they give money to better. I keep getting all these calls trying to lend me government money for my business, so do other businessmen I know. I tried to get removed from their lists, yeah right, that never works. They don't care who they lend the governments money to, they get paid on commission so will make things look acceptable.

I think I understand why people are concerned about this but let's look at the facts:

Fiskar got a $192 million loan from the taxpayers.

They failed to repay $139 million before bankruptcy, which I'll assume means they managed to pay back $53 million.

Their assets were sold for $149 million.

Sounds to me like the taxpayers ended up making $10 million from the sale. That sounds like a win for us, the taxpayers.

The thing I think is the problem is that it was acquired by a Chinese company. If it had been bought by an American company there wouldn't be a fuss at all.

Businesses fail all the time for many reasons. Competitors then buy up their assets in bankruptcy. It must happen all the time. I guess I just don't see the big deal everyone else does.

a reply to: Vasa Croe

100 million is chump change compared to the 20s of billions to some other companies;

projects.propublica.org...

a reply to: thov420

Yes well I suppose the major problem is, yea made a 10 million dollar profit, but the company may be worth much more then that. See we are talking about the funny money, and they are gaining actual resources, infrastructure, information, mind power etc. Which may have returns for 100 years, 1000 years, or more. China is thinking smartly and long termed, thats why they buy a lot of land too. Its obvious, america is screwed, the government are actually entirely evil, and the big businesses that take the tax payers money to profit, its all bs.

originally posted by: ImaFungi
100 million is chump change compared to the 20s of billions to some other companies;

projects.propublica.org...

We should not be giving any money to any business, ever.

a reply to: Vasa Croe

Sorry but if I remember correctly it wasn't the current administration that was in power when the cash for clunkers and auto bailouts happened but Bush's. They should have let the free market work and let the companies fail.
The Chinese in all honesty make better cars than the U.S anyway and the decline in that industry was inevitable seeing as other countries made much better car products. It was the same as us in the UK, our car industry was terrible, much like the american one now and all our famous brands have been sold off to chinese, indian, german etc.. But the fact is they make a much better product. But we still make a lot of cars here in the UK they are just owned by foreign companies now, so the industry has got better in the hands of foreign manufacturers.
The top end of the car industry in the UK have very good car manufacturers like McLaren, Holden, Chateram etc.. And I think that's where the future of American car industry will end up, the major car market is going to be from Asia, India and Germany.
Apart from the government mismanagement of the bailouts I don't see this as a bad thing because they will make better cars than what you are producing now otherwise why do it.

originally posted by: AugustusMasonicus

originally posted by: ImaFungi
100 million is chump change compared to the 20s of billions to some other companies;

projects.propublica.org...

We should not be giving any money to any business, ever.

I agree, but I would still also agree with my original statement, that it appears the OP singled out this company which is in the lower terms of money being spent compared to, if I assume correctly, mainly because it is an electric car company (ewwww green energy...not in my 'merica).

What do you think of the billions giving to private defense/military contractors to innovate products and then sell back to a minority of the people who can afford them, who fronted the money for those products to be made? This is communism, or corporate communism, except its not to benefit the all, its to benefit the wealthy.

If Fisker was a top quality buy then an American investment firm would've gotten to it first.

originally posted by: Vasa Croe
This is ridiculous...so the US taxpayers bailed out Fisker only to the tune of $192 MILLION dollars, only to have them go bankrupt and sold at GOVERNMENT auction to China....not only that but they also acquired A123 Battery corporation in the same manner which holds NUMEROUS patents in the battery industry.

Way to go current administration! Keep wasting out money and GIVING our businesses to foreign countries......

And yes.....I do blame this on Obama and the current administration.....such a huge FAIL it is ridiculous.

Fisker Automotive -- the U.S. electric car company that failed to repay roughly $139 million in federal loans before going bankrupt -- is now owned by a Chinese company eager to unleash its cut-rate acquisition on the American auto industry.

The company’s assets were acquired earlier this year by China's biggest auto parts supplier, Wanxiang Group, for $149.2 million in a U.S. bankruptcy auction.

The company reportedly could start selling Fisker’s ill-fated Karma plug-in car later this year in the United States and Europe.

Billionaire company founder and Chairman Lu Guanqiu has aspired to get into the auto industry since the 1980s and the electric-car business for roughly the past 15 years.

And the acquisition of Fisker and its battery supplier, A123 Systems, which each came with key patents, should make Guanqiu's company well positioned to compete.

Wanxiang acquired A123 Systems in a 2012 bankruptcy sale, after the company failed to repay millions to the same federal loan program that helped Fisker.

Source

originally posted by: ImaFungi
What do you think of the billions giving to private defense/military contractors to innovate products and then sell back to a minority of the people who can afford them, who fronted the money for those products to be made? This is communism, or corporate communism, except its not to benefit the all, its to benefit the wealthy.

If the contracts go out to bid then I have no issue. If it is a no-bid contract then they fall in the same bucket I mentioned earlier.