Feds Seize $21 Million From Fisker's Reserve Funds After Missing Payment

The Obama administration has seized $21 million from troubled automaker Fisker Automotive Inc. just weeks after the company laid off three-fourths of its workers amid continuing financial and production problems.

Fisker had received $192 million in federal loans before a series of problems led U.S. officials to freeze the loan in 2011.

In a statement Monday, the Energy Department said it recovered $21 million from the company’s reserve account on April 11 as it continues to seek repayment from the car maker for a 2009 loan commitment awarded by the Energy Department. A payment from Fisker was due Monday, but was not made, a DOE official said.

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jeffgall - 4/23/2013 11:06:45 AM

+1 Boost

Reasons why government should stall out of the private sector. If this was a good investment, private investors would have ponied up the money.

Agent009 - 4/23/2013 12:36:40 PM

0 Boost

Do I hear "taps" in the background?

Sciros - 4/23/2013 1:18:14 PM

-1 Boost

Bollocks. Private investors invest in failed ventures all the time as well, INCLUDING FISKER. Yes it got significantly more private money ($850 mil) than it did from the government. Some ventures fail and some succeed. The government actually handled this as well as one could and has been very strict with the invested money. Hindsight is 20/20 but the car seemed like a really good product at time.

vtandon - 4/23/2013 3:15:19 PM

0 Boost

Sciros, I agree with you 100 percent. By the wasy the DOE funding program was starting by the Bush Administration. I don't blame Bush or Obama, just like you said some investment fail and some succeed. We should at least give credit to the government which tried something new.

jeffgall - 4/23/2013 8:46:34 PM

0 Boost

My point is the government should not be risking my money. If you want to risk yours on this, then invest privately.

Sciros - 4/23/2013 2:11:30 PM

0 Boost

Yep let's downvote facts that don't jive with your agenda.

Sciros - 4/24/2013 8:54:55 AM

+2 Boost

Well if it makes you feel better, jeff the government risks "your" money on way dumber stuff ALL the time, and in much larger quantity. Hundreds of billions on failed military weaponry (F-35, Littoral, etc.) for instance. Makes Fisker seem like the small potatoes it is. And the response to the failed Fisker investment is as good as you can ask for, IMO.

iamdabest1 - 4/24/2013 11:37:19 PM

+1 Boost

a car company that wants to be successful selling cars for 100k+ that doesnt even drive well never sounded like a good investment to me.