How Fisker got $500 million in government loans for a fuel economy flop

When Fisker Automotive won heaps of praise from Vice President Joe Biden and a $529 million loan from the U.S. government, officials touted the Karma luxury sedan as getting up to 100 miles a gallon, going 50 miles on a full battery charge and offering "supercar" performance. None of those targets were met — but Fisker's moving ahead, your tax dollars in hand. The news of Fisker's shortfalls in its mileage targets announced yesterday was the latest in a series of misses since designer Henrik Fisker unveiled his concept in 2008.

Right from the get go I was irritated reading this article. While helping to develop more fuel efficient cars is a noble effort, should our govt. really be funneling over half a billion dollars into designing a luxury car? How many people could even afford the thing at $97,000? I doubt more than a hand full. Giving a car company that much money without proven performance seems laughable.

While the actual electric range and fuel economy numbers of the Karma — 32 miles of electric-only range, a 52 mpg-e overall rating and only 20 mpg when its 2-liter GM turbo engine is on — surprised many, they weren't shocking to auto industry observers who've noted the Karma was not just an expensive electric sedan, but also the largest and heaviest one to date. Early prototypes were hidden with bodies of Chevy Silverado crew cab pickups, and the Karma tips the scale at roughly 5,300 lbs. unloaded, thanks to 22 kWh of batteries stored under the floor.

32 miles of electric only range, meh OK. Been done, and done better. 52 mpg overall is impressive, but not for a car in that price range. 20mpg gas only?!?! Are you freaking kidding me... Corvettes do much better. Granted, all combined the thing is much more fuel efficient but still... you are really limited. There is NO WAY you are going to get a very performancy car that tips the scales at 5,300 pounds.

The figures — along with performance results that now peg the Karma's 0-60 time at an un-supercar 6.3 seconds — were enough to convince one long-awaiting Fisker customer to consider asking for his deposit back on the $97,000 sedan: I ordered this car because I wanted an eco-friendly ride that didn't suck. But this car isn't seeming so eco-friendly right now since my Aston gets the same MPG on gas. Plus, the crappy tires that wear out in a year, and the 0-60 has been downgraded to 6.3 seconds. It just gets worse and worse every day that this drags on... sooo... disappointed.

I'd want my money back too. 6.3 seconds to 60 is painfully slow for a 'supercar'. I just can't get over the sticker price either... $97,000 for a niche unsupercar? I am going to point and laugh every time I see one, if I ever do.

Fisker, who counts among its early investors and customers former Vice President Al Gore, was able to use its government loan as a selling point to private investors who have since pitched in an additional $500 million; the company is raising an additional $150 million.

Well there ya go. So strange that other (better) companies were denied a loan. Friends in the right places makes all the difference.

Your thoughts? I understand that in order for new technology to come out the government needs to invest in it. I just think this deal stinks to high heaven. It is not reasonable to give a company a loan to produce a car that is double the average persons paycheck.

I'd rather buy a prius and a new corvette for the same amount of money personally.

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reply to post by Domo1


My corvette has gotten 28 mpg highway with an aftermarket camshaft (those kill mileage). Those cars are bad.

reply to post by Evolutionsend


My Fathers 2010 Corvette was getting a little over 30 mpg. This is really embarrassing and I am really irritated with the govt. or funding something that sees like such a waste of time.

they will do anything but spend responsibly. i wonder how many vacations etc came out of that cash. there is never checks and balances anymore. hey ill promise to drive my car 70 km/h in 6th gear if you give me 500,000,000 dollars

I posted when they built it a while back.

www.abovetopsecret.com...

It makes me angry then, and now. What a dumb idea.

After watching the movie collapse they brought up a very good point about these expensive cars hybrids, electric cars etc. Even if they have billions of 100% electric cars to get away from oil they don't tell you that it takes 7 gallons of oil to make 1 tire. So when the united states and all the foreign countries run out of oil how are you even going to afford tires for the cars or run anything for that matter. Doesn't matter how much mpg or how many miles you can get out of a car when this country has no more oil..

Anyone ever hear of the peak oil crisis ? Saudi Arabia is already doing off shore drilling when they are said to have around 25% of the worlds oil on shore.. Why would they do that when off shore drilling is way more expensive?

Sorry if this sounds like a rant lol