Spending was lavish; engineering blunders rife. The company also faced pressure from both its investors and its chief creditor, the Energy Department, to meet ambitious goals set by Fisker executives...In September 2009, Fisker won a $529 million loan from the Energy Department to develop the Karma and build a second model in the United States. The financing came as part of a broader Obama administration effort to shore up employment in the recession-ravaged auto industry and improve the fuel efficiency of the U.S. auto fleet by extending government loans to so-called green-energy initiatives....Fisker built an estimated 2,450 Karmas from 2011 to 2012, but lost at least $35,000 on each car, according to internal financial statements and interviews with former Fisker executives. One former executive said the Karma "cost far more to produce than we could ever charge for it." ...Henrik Fisker and co-founder Koehler were pulling down handsome salaries — $600,000-$700,000 a year, according to several sources familiar with Fisker's executive compensation — even after the company began laying off hundreds of employees in late 2011 and early 2012. Considerable sums were used to burnish the image of the company as well as Henrik himself. In May 2011, the company co-sponsored a pre-race grand prix party aboard a 146-foot yacht moored in the Monte Carlo harbor. Guests drank glasses of champagne served with flecks of gold.
Tuesday, June 18, 2013
Obama administration's plan to prevent CO2-induced bad weather was complicated and nuanced: It evidently involved serving glasses of champagne with flecks of gold on a 146-foot yacht in the Monte Carlo harbor
Special Report: Bad Karma: How Fisker burned through $1.4 billion on a 'green' car | Reuters