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Federal Loan to Fisker Produces Few Jobs, New Response Shows

U.S. Senators Chuck Grassley of Iowa and John Thune of South Dakota continue to seek details on why the U.S. Department of Energy chose Fisker Automotive for a $529 million loan guarantee, which the government was forced to halt. As a part of their ongoing inquiry, the senators sent a letter to Fisker Automotive on July 23, 2012, which can be found HERE. The company’s response can be found HERE. Grassley and Thune today made the following comments on their inquiry:

“The announcement of the U.S. government’s half billion-dollar-plus loan to Fisker celebrated the Delaware plant’s refurbishment as new life for auto manufacturing in the United States,” Grassley said. “The plant was supposed to employ more than a thousand workers but employs only 16.  Now, the U.S. government has been forced to halt the loan and might never collect the millions of dollars already distributed. So far, the Energy Department refuses to take responsibility for the loan and the job creation that has not materialized. We’ll continue to ask questions to find out how a loan like this could have been made and what the return has been for the American taxpayer.”

“The Department of Energy’s decision to grant Fisker Automotive a $529 million taxpayer-backed loan guarantee has resulted in the creation of only 16 direct U.S. auto manufacturing jobs, and a luxury electric vehicle that is manufactured in Finland,” said Thune. “Despite this waste of taxpayer dollars, the Department of Energy has yet to explain its methodology in selecting Fisker for over half-a-billion of the taxpayers’ dollars. Americans have a right to know why their hard-earned money was directed to a company that has failed on all of the administration’s job creation projections. Senator Grassley and I will continue to press the Obama administration on why this loan was made and ensure deals like this are prevented in the future.”

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