Fisker's former CEO gets Capitol Hill grilling

By Amy Cherry 5:21pm, April 24, 2013
Fisker's former CEO gets a grilling on Capitol Hill.

Henrik Fisker went before a House Oversight Committee and was forced to explain why his company wasn't meeting milestones required for it to meet its half-billion dollar loan from the federal Department of Energy.

The Associated Press' Matt Daly says there's been a lot of partisan back-and-forth over the green luxury automaker's failures.

"The Republican chairman of the subcommittee Jim Jordan of Ohio said that it was an outrageously mismanaged program that has basically wasted taxpayer money. Democrats pointed out that Fisker's loan, which so far the U.S. taxpayers are on the hook for about $192 million, represents only about two-percent of the $8 billion car loan program," says Daly.

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At one time, it was thought Fisker would make its plug-in hybrid sports cars at the former General Motors plant on Boxwood Road. But the company has since fired the majority of its workforce, and it's widely suspected the automaker is heading into bankruptcy.

Daly says, so far, the hearing hasn't revealed any evidence of political influence that led directly to Fisker's DOE loan.

"We haven't really seen any evidence that there's been political posturing on it or that the reason the loan was given was for politics, but certainly Vice President Biden wanted to open the GM plant for Fisker cars so I mean, you could sort of make your own conclusion," says Daly.

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The hearing revealed the Obama Administration had been getting representations from Fisker that the company could meet production deadlines and financial goals, creating confusion over the automaker's troubled financial state.

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