Calif. automaker receives $528.7 million govt loan

Calif. automaker receives $528.7 million govt loan

www.huffingtonpost.com

WASHINGTON — Fisker Automotive, a California manufacturer of luxury electric vehicles, will receive more than $500 million in federal loans to develop a plug-in hybrid sports car with a sticker price of nearly $90,000 and a new plug-in hybrid vehicle to be built in the United States.

The Energy Department said Tuesday it would lend $528.7 million to Fisker from a $25 billion fund to develop fuel-efficient vehicles, making the Irvine, Calif., startup the fourth automaker to receive loans from the program. The government awarded $8 billion in loans to Ford Motor Co., Nissan Motor Co. and Te

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[edit on 22-9-2009 by lpowell0627]

This is from the AP, not Huffington Post, before I get flamed for a bad source.

Nonetheless, this is nuts!

I should think, that at the very least, federal funds should be provided to assist companies in producing products that Americans can actually afford!

What the heck good does it do us to create fuel-efficient cars that cost $90k?

Perhaps I'm mistaken and the majority of Americans can afford to drive around in cars that cost more than the average home.

Again, this is an example of the government being completely out-of-touch with what the AVERAGE American needs.

$528 million?

Do you know how many families could have had a roof put BACK over their heads for this kind of money?

This, to me, is just throwing more and more of our taxpayer dollars out the window.


I also thought it important to mention that they are also working on another model that will sell for $40K.

They are tauting it as a "low-cost" alternative.

Since when did $40K for a car become low-cost??? Especially in the midst of a recession?? Oh, I forgot...the recession is over.
www.huffingtonpost.com
(visit the link for the full news article)

[edit on 22-9-2009 by lpowell0627]

It's simply hastening the collapse. At first it was the key industries, because their collapse would kill everything. Then it was the key employers like the auto industry, because their collapse would kill states.

Now the effect is filtering down, and starting to apply to everything. Its a panicky reaction to change, desperately trying to save things that should not be saved, just to retain a semblance of normality.

Unfortunately for us when you leave a gangrenous limb attached instead of amputating it, it kills you, no matter how much money you throw at it.

Originally posted by lpowell0627
This, to me, is just throwing more and more of our taxpayer dollars out the window.

If it was going out the window, then I wouldn't have much to say against this. The unfortunate truth is the money is actually going into someone else's pocket. Worryingly, these "someone else's" are people who are not US citizens nor are the corporations American.

Jon

[edit on 9.22.2009 by Voxel]

reply to post by D.E.M.


I agree with you 100%. In fact, I can think of quite a few things in this country that should be amputated....

I can't even figure out why this automaker would even bother with this product right now. Rule # 1 in business -- know your customers.

I just can't see the majority of people running around buying up $90K hybrids.

This will probably be used as another shining example of why America can't make cars people want....

So, my truck is bought and paid for . . . but it's now a clunker ?

So, you want me to buy this $90,000.00 hybrid, for fuel efficency ?

Ah, . . . . . decision made ! (You are a jackass . .a jackass . .jackass . . .)

reply to post by lpowell0627


This is just a stupid loan.

Tesla Motors has their Model S which has a 300 mile range, 45 minute charge time, and is FULLY ELECTRIC. Currently costs 50k. If they were loaned half a billion, they could re-tool a factory for mass production and seriously drop production costs, and they won't have R&D costs sucking up funds...

What I find funny is where is the US content laws on this one? I worked for a Canadian bus manufacturing company with a plant in NY, and for anything for the US market 80% had to be built in the US. Here we see money being p!@#$% into another country while the parts will be made state side. Way to keep Americans employed!

Originally posted by lpowell0627

This is from the AP, not Huffington Post, before I get flamed for a bad source.

Nonetheless, this is nuts!

I should think, that at the very least, federal funds should be provided to assist companies in producing products that Americans can actually afford!

What the heck good does it do us to create fuel-efficient cars that cost $90k?

Perhaps I'm mistaken and the majority of Americans can afford to drive around in cars that cost more than the average home.

Again, this is an example of the government being completely out-of-touch with what the AVERAGE American needs.

$528 million?

Do you know how many families could have had a roof put BACK over their heads for this kind of money?

This, to me, is just throwing more and more of our taxpayer dollars out the window.


I also thought it important to mention that they are also working on another model that will sell for $40K.

They are tauting it as a "low-cost" alternative.

Since when did $40K for a car become low-cost??? Especially in the midst of a recession?? Oh, I forgot...the recession is over.
www.huffingtonpost.com
(visit the link for the full news article)

[edit on 22-9-2009 by lpowell0627]

I can afford the 90K model and I am eager for a good looking and practical electric vehicle. The fact that at least they are building them in the US is also positive and some of the folk that have been laid off at GM or Chrysler can get jobs there.

I have no problem with this 500 million its nothing compared to what detroit got.

Developing New technology is expensive but the price always comes down ,dvd players anyone? I am pleased that the development will take place in the US and they are encouraging the development of alt energy.

90,000 dollars for a sports car really isn't alot of money. Many people could afford that.