China company wary of Fisker electric car deal

Fox News:

Chinese firms in talks to buy electric car maker Fisker Automotive reportedly are having second thoughts, balking over the possibility that Fisker's U.S. government loan would compel any buyer to churn out cars at an aging GM plant in Delaware.

The Wall Street Journal and Reuters report that the Chinese suitors are pulling back on bidding for the troubled automaker, which so far has drawn $193 million from its nearly $530 million U.S. taxpayer loan. The idea that companies from China -- where state-backed industry is a way of life -- are nervous about the terms of the U.S. loan could raise even more questions about the viability of that taxpayer investment.

"How are these Far East entrepreneurs missing the Obama administration's keen vision and business acumen?" Paul Chesser, with the National Legal and Policy Center, asked sarcastically.

The Department of Energy loan itself has been frozen. Fisker was cut off after failing to meet production and sales goals on its electric plug-in sedan, the $100,000 Karma.

This was followed by the company halting operations at a Delaware facility, a formerly abandoned General Motors plant.

It's unclear whether Fisker would even be able to tap the remainder of the federal loan.


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Obama really never understood the lack of market for these vehicles when his Energy Department pushed these loans.  This was command economy  fantasy.  There were not sales of these vehicles because there was no market for them and not because of a lack of government investment.   This will go down with Solyndra as another misguided policy that cost the taxpayers millions.