Car Maker Gets $529M US Loan, Builds Car in Finland
Claims money was all spent on US design work
By Kevin Spak, Newser User
Posted Oct 21, 2011 1:04 PM CDT
The electric powereed Karma 1 by U.S carmaker Fisker, based in California, is displayed at the Paris Auto Show, during a press day, Friday Oct.1, 2010.   (AP Photo/Francois Mori)

(Newser) – Another Energy Department loan guarantee is coming under scrutiny. ABC News has discovered that the Obama administration doled out a $529 million guarantee to Fisker Automotive to build its new state-of-the-art luxury hybrid, only to see Fisker build the car in a factory in Finland. Fisker says there were simply no American factories that could do the job, but insists that the government’s money all went to fund engineering and design work done in the US.

Company founder Henrik Fisker says that if he’d built a factory “where it was too expensive,” he’d fail, as Solyndra did. “We’re not in the business of failing; we’re in the business of winning … That’s why we went to Finland.” He adds that the government had signed off on the decision, so long as government money stayed in the US. But it’s clearly not what the administration originally had in mind; Joe Biden announced the loan at a closed Delaware auto plant, promising new manufacturing jobs.

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Showing 3 of 81 comments
G.O.P.
Oct 22, 2011 11:26 AM CDT
Karma 1 is a bitch
milehighhawk
Oct 22, 2011 9:32 AM CDT
settle down people. It was a loan. not a grant. also, most of the loan ($359 mil) is earmarked to build a car called nina that will be built in the us. here are some links: http://www.freep.com/article/20111022/NEWS15/110220328/Fisker-says-federal-loan-money-used-only-U-S-?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE http://www.delawareonline.com/article/20111022/NEWS/110220325/Fisker-No-misuse-of-federal-loan?odyssey=tab%7Cmostpopular%7Ctext%7CFRONTPAGE
Dale
Oct 22, 2011 8:37 AM CDT
Our stimulus money at work!! Too bad it is just helping our competitors. This must be what they teach at Harvard econ 101. Kind of scary. Now Obama wants more money to help defeat our economy.