Fisker’s Decision to Cut Jobs Drew Political Criticism image

The fact that Fisker dismissed last week 75% of its workers, fuelled political criticism regarding the U.S. government’s loans offered through the clean-energy programs.

Last year Fisker’s battery supplier, A123 Systems, which also received $249.1 million federal grant, sold its assets to a Chinese company. Now Fisker, which received a $529 million in U.S. loan, has cut 75% of its workforce after it failed to find a partner to fund its operations. This news is only reviving criticism and concerns regarding the government’s loans offered through the clean-energy programs.

“The Department of Energy has never owned up to its mistakes and acknowledged it didn’t do a good job of choosing Fisker and A123 as worthy of taxpayer investment,” U.S. Sen. Chuck Grassley, R-Iowa, said in an e-mailed statement.

It’s been seven months since Fisker has produced the last Karma sedan, as the automaker was left without a lithium-ion battery supplier after A123 filed for bankruptcy. Since then Fisker has to deal with several downturns, including the government’s decision to block the company’s access to the rest of the loan or the resignation of Henrik Fisker, the automaker’s founder.

“The Department of Energy stopped payment on the federal loan in 2011 after Fisker stopped meeting their milestones, and is committed to the best outcome for taxpayers,” Aoife McCarthy, an Energy Department spokeswoman in Washington, said in an e-mailed statement.

  • Enrique

    Fiskers equipment and facilities were used as collateral for the DOE loan, so potentially the DOE could own this company. Government Motors could expand here. Yahoo for the taxpayer.