Taxpayers Lose $139 Million After Energy Dept. Loan to Electric Car Maker is Sold

Leah Barkoukis | November 23, 2013 6:21 PM

The Department of Energy sold part of its $192 million loan to electric carmaker Fisker Automotive on Friday to a Chinese investor. The sale represents yet another loss for American taxpayers over a stimulus-backed “green” initiative—this time to the tune of $139 million.

The Daily Caller has the details:

Including the $25 million loan sale, the DOE has recovered only $53 million of the original $192 million disbursed — netting taxpayers a $139 million loss.

Fisker was awarded a $529 million loan guarantee by the Obama administration in 2009 to produce a luxury hybrid car, the Karma, which sold for a $103,000 per unit. However, failure to meet Energy Department benchmarks to receive funding resulted in the company losing its loan guarantee in 2011. The company drew down on $192 million before having its federal funding pulled. The Obama administration seized $21 million from the company in April to help repay taxpayers for its loan.

Earlier this year, reports came out that Fisker had violated its loan agreements multiple times before being cut off by the Obama administration in 2011. Bloomberg reported that Fisker’s technical defaults began in 2011 partly due to “lower-than-required earnings before interest, taxes, depreciation and amortization, and failing to meet a production milestone of at least 11,000 vehicles sold to dealers for an average of $87,500 by Sept. 30, 2011.”

“Fisker's collapse closes yet another sad chapter in DOE's troubled portfolio. The jobs that were promised never materialized and, once again, taxpayers are on the hook for the administration’s reckless gamble,” House Energy and Commerce Committee Chairman Fred Upton, R-Pa., and House Oversight and Investigations Subcommittee Chairman Tim Murphy, R-Pa., said in a joint statement.

The sale represents the biggest taxpayer loss on a green loan since the Solyndra collapse, which cost taxpayers $528 million.

"Once again, American taxpayers are losing out to foreign investors due to the Obama administration's failed green energy policies," Rep. Marsha Blackburn, R-Tenn., said. "Time after time this administration has fumbled the ball with their attempts to pick winners and losers when it comes to American energy."