Fisker Is Not Another Solyndra...Or Is It WELL On Its Way?

Since President Obama's administration has been receiving harsh criticism for the collapse of a solar company, Solyndra, folks have been keeping an eye on some of the government's other investments. Being that we're car guys, we've been watching Fisker for some time now.

I fell in love with the automakers Karma when it debuted but little by little, it seems as though what initially was a small delay became an extended problem.

With the Department of Energy putting its neck out there for over $500 million bucks, of which over $193 million has been paid, funding was recently cut off. This led to the layoffs that made headlines this week.

Here's where things get hazy. As we've pointed out numerous times before, green luxury vehicles just don't sell well. Hint: if you want to see what we're talking about, look at how many BMW 7-Series ActiveHybrids sold in 2011 - it's not a pretty picture.

According to Fisker, the firm isn't relying on government funds to push on; however, CNNMoney notes that Project Nina may be subject to delays as it renegotiates loans with the DOE. And the firm ISN'T relying on DOE funds?

In addition, according to the story, 1,500 Karmas have been produced with 300 in owners' driveways. So, what about those 1,200? Will they find a home? If so, how long will it take?

Is Fisker a ticking time bomb or is it just the same old story of the tortoise and the hare - slow and steady wins the race?


When Fisker Automotive announced it was laying off about two dozen workers at its Delaware factory, comparisons arose to Solyndra, the solar cell manufacturer that went bankrupt despite billions of dollars in U.S. government help.

Yes, the California based electric car maker and Solyndra both got a lot of government assistance, but analysts say those comparisons are unfair and premature...

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FromThePassengerSeat - 2/11/2012 8:52:22 PM

+1 Boost

Fisker (finally) has its cars on the road and they're being produced successfully. Now, it can coast on the Karma's looks alone. With such a small production capacity, Fisker will sell all the Karmas it makes.

CarCrazedinCali - 2/12/2012 12:40:11 AM

+1 Boost

@ Northstar- These kinds of startups? That sounds like startup automotive manufacturing in general is something you think the government shouldn't keep financially backing/supporting, right? I am all for smarter investments of our tax dollars, but sometimes a risk pays off in investment and sometimes it doesn't. Perhaps you are right, I would imagine the investment in starting up an auto manufacturing company is pretty steep and thus the time to turn a profit would be much longer. Although, in the long run, if say BMW (or any company) was born out of a similar fashion, look how well they are doing now and how important they are to the local and global economies.

carsarefun - 2/12/2012 12:05:45 PM

+3 Boost

Taxpayer funding of private enterprise is a very bad idea.

It puts those privately funded businesses at a disadvantage.

Only "Liberal 'thinkers'" would support this misguided reasoning.

As Margaret Thatcher once said: "The only trouble with Socialism is that sooner or later you run out of OTHER PEOPLES' MONEY."

We have way too much government in our country. The politicians should spend more time keeping there fingers out of our wallets. I can do a much better job of deciding what to do with my hard earned money.

CARS ARE FUN

Agent00R - 2/12/2012 2:23:39 PM

0 Boost

"No, no, no!"

http://www.youtube.com/watch?v=Tetk_ayO1x4

CarCrazedinCali - 2/12/2012 2:58:04 PM

-1 Boost

not sure it's quite that cut and dry, but you are clearly a "conservative thinker". I am sure you would support deregulating lots of things and trusting companies to do the right thing, HA

Ferrari365P - 2/12/2012 9:02:02 PM

+1 Boost

I've seen two on the road here in LA in the past two weeks. They make you stop and say wow, and it's hard not to want one after seeing one. There's a lot of money in LA, so if people have money and my reaction, the Karma could sell well here. Fisker has one thing almost all the others don't: a literally stunning car. Looks sell.

coltonbrav - 2/13/2012 2:01:50 AM

-1 Boost

First off, 'spies it is disingenuous for you to jump on the Fisker - Solyndra comparison, someone came up with this 'novel' idea to sell content. Here's why its incorrect: Fisker has raised enough capital to get them to a Nina release, another $465 million since the DOE said 'hold on', they aren't relying on DOE but they're not done with DOE either, that loan is being restructured. DOE has a pretty big stake in the company now.

You're saying that since 7-series and S-class hybrids won't sell, Fisker shouldn't either. Camry and Accord hybrids sell at about the same percentage as the above relative to their gas powered siblings, still a low %. But, Prius is the only hybrid to blow the doors out so far. Tesla roadster sold out. Dedicated alternative technology products with marketing dollars behind them tend to grab the public's attention and move. Fisker will need to spend some money on marketing. The 1200 cars Fisker has built are all sold. Gas prices are moving up.

I don't know either but I think its got a good shot. I drove one the other day and it was sublime. I put a deposit down, so they are selling. And at some point, electricity will find its niche. I like Fisker's chances.