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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