$529 Million In Federal Funding And All Jobs Destroyed Or Lost

Tyler Durden's picture




 

Pop quiz:

Q. What is the fiscal multiplier on $529 in government stimulus?

A. If you are Fisker Automotive, zero.

While the terminal fate of the federally-subdizied car company was no secret to anyone, there were some questions when this latest example of idiotic government "capital allocation" would get Solyndraed. The answer is now. 

GigaOm reports:

According to several sources, electric car maker Fisker Automotive is planning to lay off many of its employees today. Sources tell me that there is a company meeting at 8AM today where the company will announce this to the employees.

 

I’ve also heard that law firm Outten & Golden has been looking into initiating a class action law suit to represent Fisker’s employees should Fisker fall into bankruptcy. The firm is looking into whether Fisker (like Solyndra) will or already has violated the WARN act.

 

The news follows reports that Fisker has hired a law firm to advise it on bankruptcy options. It owes a loan repayment to the Department of Energy this month, and has been cutting costs and furloughed its employees last month. The company hasn’t made a car since the summer of 2012.

...

Fisker was founded in 2007 and has raised over a billion dollars from venture capitalists like Kleiner Perkins, NEA and others, as well as wealthy individuals organized by now defunct broke Advanced Equities. Fisker also received part of a loan from the Department of Energy.

Perhaps the employees of the taxpayer-funded company can also sue the taxpayers for being dumb enough to have loaned cash to Fisker in the first place, instead of investing in other projects that actually have an IRR>0%. Oh wait: this is government "investing" where a 0% return is actually a good thing.

Oh well: time for the administration to spend a few more hundred million in another dead-end company just to purchase a few hundred votes for the next electoral cycle.

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Fri, 04/05/2013 - 11:45 | 3412999 Bearwagon
Bearwagon's picture

Why haven't they built an electric choomwagon? All would be well ...

Fri, 04/05/2013 - 11:47 | 3413011 TeamDepends
TeamDepends's picture

DIY.  The government will give you bales of cash.

Fri, 04/05/2013 - 11:52 | 3413047 DJ Happy Ending
DJ Happy Ending's picture

This is the republicrat way. Get used to it.

Fri, 04/05/2013 - 12:22 | 3413171 knukles
knukles's picture

The reason that Fisker has had to stop producing electric cars is that the price of gasoline has gone up because too many people stopped driving.
            -Paul Krugman

 

and with that I think I'm gonna go play with myself

Fri, 04/05/2013 - 12:25 | 3413200 pods
pods's picture

Since I can read your tiny writing without glasses does that mean I don't have to stop yet?

pods

Fri, 04/05/2013 - 13:45 | 3413491 TerminalDebt
TerminalDebt's picture

They stopped producing electricity cars because the cost of producing batteries increase as oil increases. Who would have known that the cost of everything is based on the price of oil?

Fri, 04/05/2013 - 16:18 | 3414076 eatthebanksters
eatthebanksters's picture

Knukles you always have good shit that gives me a laugh...that Krugman 'quote' is priceless!

Fri, 04/05/2013 - 17:08 | 3414292 Boris Alatovkrap
Boris Alatovkrap's picture

Boris

Fri, 04/05/2013 - 19:21 | 3414714 StychoKiller
StychoKiller's picture

Boris is smart of brains! :>D

Fri, 04/05/2013 - 20:04 | 3414855 smlbizman
smlbizman's picture

hang in their boys...we still have tesla....another genius succeeding  on his own....

Fri, 04/05/2013 - 21:38 | 3415171 CaptainObvious
CaptainObvious's picture

Ohhhh.  And here I was thinking that they stopped producing electric cars because the batteries blew up and burned down the houses of the car owners. 

Fri, 04/05/2013 - 12:31 | 3413232 TeamDepends
TeamDepends's picture

Do it soon before the Self Pleasure Tax kicks in....

Fri, 04/05/2013 - 13:14 | 3413384 TeamDepends
TeamDepends's picture

"Fisking" will be exempt.

Fri, 04/05/2013 - 17:14 | 3414317 James-Morrison
James-Morrison's picture

Nothing Runs... Like a Fisker

Fri, 04/05/2013 - 11:48 | 3413022 asscannon101
asscannon101's picture

I am very intrigued by your theories and I would like to sign up for your weekly newsletter...

Fri, 04/05/2013 - 11:50 | 3413027 Chuck Norris
Chuck Norris's picture

They did build the first car to burn underwater.

Got to give them props for that.

Fri, 04/05/2013 - 12:00 | 3413083 TeamDepends
TeamDepends's picture

You were kick-ass in that Ranger show.  You should go do that in D.C!

Fri, 04/05/2013 - 11:49 | 3413030 House-of-Cards
House-of-Cards's picture

"Electric Choomwagon"

 

Aren't those called Vaporizers?

Fri, 04/05/2013 - 11:52 | 3413051 ebworthen
ebworthen's picture

That's it!

THC laden electronic joints, no real smoke or flame, just choom vapor!

Chargers built into the armrests, vapor drops and cartridges taxed to subsidize QE.

Break a window!

Fri, 04/05/2013 - 12:00 | 3413090 McMolotov
McMolotov's picture

http://www.hempcar.org/

You put your weed in there, man.

Fri, 04/05/2013 - 12:05 | 3413109 ghostfaceinvestah
ghostfaceinvestah's picture

This is classic

http://www.reuters.com/article/2013/04/05/us-autos-fisker-layoffs-idUSBRE9340LW20130405

 


Fisker Automotive, the struggling hybrid sports car maker, terminated most of its rank-and-file employees at a Friday morning meeting at its Anaheim, California, headquarters, according to a source who attended the meeting.

 

About 160 employees are affected, the source said.

Fisker will retain about 53 senior managers and executives, the source said, primarily to pursue buyers for the company's assets.

The remaining Fisker executives also are continuing negotiations with the U.S. Department of Energy, the source said. The company hopes to renegotiate a DOE loan payment that is due on April 22.

Fri, 04/05/2013 - 12:25 | 3413193 ebworthen
ebworthen's picture

53 senior managers and executives!?!?

That's enough for 20 or more small car companies!

What, did they come to Fisker from GM?  Or was it Solyndra?

Fri, 04/05/2013 - 12:58 | 3413341 Freddie
Freddie's picture

I remember many years ago reading DeLorean's book or something about the endless layers of management at GM during their 1960s heydey.   Fisker takes the cake.  About 2.5 employees for every senior manager and exec. 

LOL! Hope & Change Motors.   And f*** Elon Musk at Tesla too. 

Fri, 04/05/2013 - 18:11 | 3413257 Freddie
Freddie's picture

These CS'ers are so corrupt.  Another Calliefornia fraud Dem company.   The employees want to sue.  LOL! Were they UAW or Electrical Workers Union of Amerika?

Fisker Karma - as in bad f**king karma.

Is this that fake con artist Elon Musk who O handed NASA too?  No he has the Tesla POS.   At least the Fisker was better looking than Tesla's shitboxes. 

I will laugh my arse off for all the libturds who bought these Fisker's which will now be worthless. I smell an Obam the muslim bailout coming. 

Fri, 04/05/2013 - 13:26 | 3413420 DawgAss
DawgAss's picture

It's a good thing they layed off the $10.00 hr employes so the "53 senior managers and executives" can divie up the payroll savings!

Fri, 04/05/2013 - 16:35 | 3414158 RafterManFMJ
RafterManFMJ's picture

You know, I'm willing to fail and only burn 100 million dollars; can you imagine how many others can also fail if we kept our failures in the 100 million dollar range? Maths show that if we had enough 100 million dollar failures at a savings rate of 400 million per, those savings would easily pile up and end the deficit.

Fri, 04/05/2013 - 17:13 | 3414316 Boris Alatovkrap
Boris Alatovkrap's picture

If break window good for local economy, break all window.

Fri, 04/05/2013 - 12:08 | 3413124 NEOSERF
NEOSERF's picture

Electric Paddywagons would be a good idea

Fri, 04/05/2013 - 12:26 | 3413191 Freddie
Freddie's picture

F---ing Dems, O, Silyconning Valley and Calliepornia - so corrupt and evil.  Totally protected by their friends in TV and Hollywood. F them! 

And no - I loathe the Bush klan who are like the Kennedys and Clintons and the other NWO/CFR/Goldman scum. 

Rand Paul, maybe Ted Cruz and a few others are decent but name one decent Dem. 

Fri, 04/05/2013 - 13:11 | 3413372 robobbob
robobbob's picture

kucinich? wrong, but exceedingly honest. that would be a huge leap over whats going on now.

Fri, 04/05/2013 - 13:26 | 3413427 Panafrican Funk...
Panafrican Funktron Robot's picture

Kucinich and Bernie Sanders are probably the only two I can think of; Dennis is barely tolerated and no longer in office (they "redistricted" him) and Bernie isn't even in the party.  I don't know that I can really think of substantially more R's.

While I disagree with Dennis and Bernie regarding their governmental philosophy, they are against the banksters, and that's way more than I can say for most people on either side.

Fri, 04/05/2013 - 18:28 | 3414523 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is like Ralph Nader. But need good haircut.

Fri, 04/05/2013 - 11:47 | 3413003 Winston Churchill
Winston Churchill's picture

Gone down in flames ,a little like their products.

Fri, 04/05/2013 - 11:46 | 3413005 BandGap
BandGap's picture

I could use one of those loans. I'm as good at doing nothing/producing nothing as the next guy. Just sayin'. Is there a sign up sheet or sumptin?

Fri, 04/05/2013 - 11:53 | 3413057 Go Tribe
Go Tribe's picture

Your skills are not sufficient to qualify for the loan. You have to be good at LOSING MONEY.

Fri, 04/05/2013 - 12:03 | 3413101 BandGap
BandGap's picture

Shit, my ex-wife would be good to have right now....

Fri, 04/05/2013 - 12:53 | 3413315 Harbanger
Harbanger's picture

We're not losing too much, 529 Million is not even 1% of the 85 Billion we produce every month.

Fri, 04/05/2013 - 11:47 | 3413006 asscannon101
asscannon101's picture

'They took err' JOBS!!'

Fri, 04/05/2013 - 11:48 | 3413010 GeezerGeek
GeezerGeek's picture

I suppose it is okay, as long as the bigwigs at Fisker got their inflated salaries and bonuses and remembered to donate to the proper political entities.

The Feds could have saved a lot of effort by just giving me the half billion. I, at least, would still have a little left.

Fri, 04/05/2013 - 11:48 | 3413016 paddy0761
paddy0761's picture

It's not about buying votes. It's about lining pockets. Follow the money.

Fri, 04/05/2013 - 11:55 | 3413058 McMolotov
McMolotov's picture

Oh, come on. They were just trying to save the world, for the children or bunnies or something. And it's the thought that counts.

Fri, 04/05/2013 - 12:04 | 3413110 LawsofPhysics
LawsofPhysics's picture

Bullshit, buying votes is essential to changing laws and avoiding prosecution.

Fri, 04/05/2013 - 12:49 | 3413305 Bearwagon
Bearwagon's picture

I'd say LoP is right, because, if you indeed follow the money, it always leads you to where the power is. Money flows to power, not the other way around ...

Fri, 04/05/2013 - 11:48 | 3413018 Cursive
Cursive's picture

Amerika:  Formerly the Land of the Free and the Brave

Fri, 04/05/2013 - 11:49 | 3413021 suteibu
suteibu's picture

Haven't made a car in 9 months.  That's some business model.  No worries, though, the execs will resurface as Obama bundlers for his 2016 presidential election campaign.

Fri, 04/05/2013 - 12:57 | 3413342 Urban Redneck
Urban Redneck's picture

If they haven't made a car in NINE MONTHS then what the fuck they been paying those 160 employees to do every day that they weren't furloughed for the last NINE MONTHS with taxpayer dollars?

Clawbacks are in order, for everyone, from the janitor to the CEO, to that stupid DoE physicist who sucks at math (despite the Krugman-like Nobel award from his peers) who signed off on this theft.

Fri, 04/05/2013 - 16:39 | 3414183 RafterManFMJ
RafterManFMJ's picture

Clawbacks? lol, isn't he so damn precocious? You're cute! Yes you are! I got your nose!

Fri, 04/05/2013 - 11:49 | 3413031 Yen Cross
Fri, 04/05/2013 - 11:50 | 3413041 suteibu
suteibu's picture

They must have been using the Boeing battery.

Fri, 04/05/2013 - 12:14 | 3413137 Matt
Matt's picture

They were both using Lithium Ion batteries (likely Lithium Cobalt Oxide) so while they may or may not be from the same manufacturer, they are the same type of battery prone to burst into flames.

This was a big issue with RC toys ~5 years ago. Then they came up with safer batteries. Funny that corporations making airplanes and cars wouldn't check with the hobby industry to see the challenges and solutions involved in making things run on batteries.

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