Fisker Denies Accusations of Using Political Connections to Receive Loan image

Fisker denied accusations that it has used political connections to get the $192 million loan although it knew it wasn’t able to reach the imposed milestones.

“Fisker never oriented itself toward market signals and consumer demand,” said Rep. Jim Jordan (R-Ohio), chairman of the House Subcommittee on Economic Growth, Job Creation and Regulatory Affairs. “It’s north star was the political winds of Washington.”

Rep. Jim Jordan said that records clearly showed that Fisker’s connections in the Obama administration helped the company secure the loan and then avoid having the loan taken away even if it missed several milestones. The loan was offered by the Energy Department through a program created in 2007 by the Congress for green energy projects.

“Let me be clear: I am not aware and do not believe that any improper political influence was used in connection with the company’s loan application or subsequent negotiations with the Department of Energy,” said Henrik Fisker, who recently resigned amid a management dispute at Fisker.

Rep. Jim Jordan added that when Fisker was offered the loan the company had a lower credit rating compared with other major automakers, lacked collateral and a ‘junk-grade’ investment rating. He also questioned how the Energy Department still offered the loan when the automaker has manufactured only several hundreds Karmas in 2011, when the target was of 14,000 units.

Source: latimes.com