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Fisker Automotive lays off 75% of workers and is near bankruptcy

Old 04-05-13, 03:44 PM
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Fisker Automotive lays off 75% of workers and is near bankruptcy

http://www.delawareonline.com/articl...-plans-layoffs
Fisker Automotive has notified Gov. Jack Markell’s office of its plans to lay off a large number of its staff today, said Markell’s spokeswoman, Cathy Rossi.

A source familiar with the company’s situation who wished not to be identified, said the layoffs were occurring today, and they included a majority of the troubled carmaker’s workforce, now mainly concentrated in California.


“We have been closely monitoring the company’s situation and are disheartened to learn that Fisker intends to lay off most of its remaining workforce,” Rossi said today. “This does not bode well for a company that, at one point, had the potential to produce a cutting-edge clean technology vehicle in Delaware. But without a battery supplier and without access to hundreds of millions in capital from the U.S. Department of Energy, Fisker is in a difficult position.”


The electric hybrid automobile maker had plans to build cars in the old General Motors plant on Boxwood Road in Newport, using the bulk of a $525 million federal loan.
But a series of problems led to the U.S. Department of Energy to freeze its loan to Fisker, leaving the firm without access to more than $300 million it needed to begin production of its second line of cars
– the Atlantic. The first repayment on the portion of the loan already distributed is due April 22.


The website GigaOM reported this morning that 160 Fisker employees were laid off and 53 people are staying on to handle negotiations with the Department of Energy and a possible sale of company assets.


A second source familiar with Fisker’s situation told The News Journal this figure sounded accurate, and that there is a “strong possibility” the company will file for bankruptcy.

The Wall Street Journal reported last week Fisker was consulting a bankruptcy attorney.


Fisker officials could not be reached for comment.


“Our goal is to put autoworkers back on the job at Boxwood Road, and the state will continue to work with Fisker's investors and remaining management to make the best of this situation,” Rossi said.
I wish our government would not loan our money out like this in the first place on bullshit "green job" creating vaporware. Making an extremely expensive sports car for rich guys is hardly saving the planet. Glad the feds turned the money off. Shouldn't have given it to them in the first place. $100's of millions of our dollars so Leonardo DiCaprio can have a cool car.
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Old 04-05-13, 05:19 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Those cars got about as poor reviews from Consumer Reports as I have ever seen.
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Old 04-05-13, 06:59 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

They used $525,000,000 to create 213 jobs?
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Old 04-05-13, 07:15 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Yeah, and the battery supplier they are "without" represents another MASSIVE abuse of the DoE's loan program. They spent hundreds of millions to pay workers to play cards in a plant that was supposed to make batteries in the US while they were really making them overseas. DoE may not know how to stimulate the economy and create jobs, but they sure know how to piss money away on losers.
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Old 04-05-13, 07:26 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

We just need a bigger stimulus.
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Old 04-05-13, 08:49 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

America, fuck yeah. And here we are bitching about why MCD's employees can't paid more? I find more worth in fast food than I do in some POS car.
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Old 04-05-13, 08:53 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by Mabuse View Post
http://www.delawareonline.com/articl...-plans-layoffs
I wish our government would not loan our money out like this in the first place on bullshit "green job" creating vaporware. Making an extremely expensive sports car for rich guys is hardly saving the planet. Glad the feds turned the money off. Shouldn't have given it to them in the first place. $100's of millions of our dollars so Leonardo DiCaprio can have a cool car.
Here's what's more troubling:

Fisker asked 53 senior managers and executives to stay on board, primarily to pursue buyers for the company's assets, the source said. The remaining Fisker executives also are continuing negotiations with the U.S. Department of Energy.

The US Gov't should DEMAND every single one of those 53 motherfuckers be fired as well.

We all know damn well they are negotiating their own retirement parachute out of their created-to-fail company.


They need to stay to "pursue buyers"? What The FUCK. This company is a piece of shit, and should be scuttled into a toilet. I'll offer my own toilet. Pay me $1.

Seriously. They need 53 senior execs to stay on board to find buyers? Shit, no wonder the company isn't worth crap.

And then some people wonder why America is doomed to fail.
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Old 04-05-13, 09:03 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by DVD Polizei View Post
Here's what's more troubling:

Fisker asked 53 senior managers and executives to stay on board, primarily to pursue buyers for the company's assets, the source said. The remaining Fisker executives also are continuing negotiations with the U.S. Department of Energy.

The US Gov't should DEMAND every single one of those 53 motherfuckers be fired as well.

We all know damn well they are negotiating their own retirement parachute out of their created-to-fail company.


They need to stay to "pursue buyers"? What The FUCK. This company is a piece of shit, and should be scuttled into a toilet. I'll offer my own toilet. Pay me $1.

Seriously. They need 53 senior execs to stay on board to find buyers? Shit, no wonder the company isn't worth crap.

And then some people wonder why America is doomed to fail.

It's Hostess all over again, but Hostess had value. They just abused the system these Fisker fucks did.
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Old 04-05-13, 09:05 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by Nick Danger View Post
They used $525,000,000 to create 213 jobs?
Roughly 2.5m per job. Not too shabby.

They could've just shut down the company and given 213 people 1m each... and it would've saved taxpayers around 312m.
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Old 04-05-13, 09:13 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

I was reading some other articles, and it appears it's more like $2+ Billion, not including government funds.
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Old 04-05-13, 10:09 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

I like how people get mad at the company when the government gave them the money to do their epic fail.

Maybe it's because of who did it?
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Old 04-06-13, 05:24 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by DVD Polizei View Post
Here's what's more troubling:

Fisker asked 53 senior managers and executives to stay on board, primarily to pursue buyers for the company's assets, the source said. The remaining Fisker executives also are continuing negotiations with the U.S. Department of Energy.

The US Gov't should DEMAND every single one of those 53 motherfuckers be fired as well.

We all know damn well they are negotiating their own retirement parachute out of their created-to-fail company.


They need to stay to "pursue buyers"? What The FUCK. This company is a piece of shit, and should be scuttled into a toilet. I'll offer my own toilet. Pay me $1.

Seriously. They need 53 senior execs to stay on board to find buyers? Shit, no wonder the company isn't worth crap.

And then some people wonder why America is doomed to fail.
Even worse, before that 53 senior managers and executives were managing 160 worker bees? WTF? Talk about a top heavy company. That may be part of the problem. Apparently sucking at the government teat is expensive in terms of overhead.
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Old 04-06-13, 07:56 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

If all the employees got a raise to double or triple what they make now, I bet that will fix things.

This is the perfect liberal company, no evil profits to be had
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Old 04-06-13, 08:00 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

So just giving money doesn't always provide positive results?
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Old 04-06-13, 09:40 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by OldDude View Post
Yeah, and the battery supplier they are "without" represents another MASSIVE abuse of the DoE's loan program. They spent hundreds of millions to pay workers to play cards in a plant that was supposed to make batteries in the US while they were really making them overseas. DoE may not know how to stimulate the economy and create jobs, but they sure know how to piss money away on losers.
I think you have your tax payer money pit/battery companies mixed up. LG Chem was the Korean company that was given $150M to make batteries in Mich. for the Chevy volt, but imported them from Korea instead. Fisker's battery maker, A123 Systems, got $130M to make batteries in the US. They actually did make batteries in the US, unfortunately they were defective batteries and most of them had to be recalled. A123 filed for bankruptcy and was eventually sold to a chinese firm.

PS. These were both grants, not loans.
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Old 04-06-13, 09:57 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by Nick Danger View Post
They used $525,000,000 to create 213 jobs?
Does the name ....Solyndra....ring a bell


http://factcheck.org/2011/10/obamas-solyndra-problem/
October 7, 2011

President Obama exaggerated when defending his administration’s approval of a $535 million loan guarantee to Solyndra, a now-defunct solar company.
.....


March 2009 press release announcing a $535 million loan guarantee for Solyndra, the Energy Department said: “This loan guarantee will be supported through the President’s American Recovery and Reinvestment Act, which provides tens of billions of dollars in loan guarantee authority to build a new green energy economy.” Damien LaVera, an Energy Department spokesman, confirmed that Solyndra’s funding came solely from section 1705.

So far, the Energy Department has finalized loan guarantees for 33 projects and has conditional commitments for five others. In total, the Energy Department says that it has put almost $36 billion into the program, according to information published on its website.

It says that “these projects plan to employ more than 60,000 Americans, create additional tens of thousands of indirect jobs, provide enough clean electricity to power three million homes, and save more than 300 million gallons of gasoline a year.” That’s all well and good if everything goes according to plan. But as the Solyndra episode demonstrates, it doesn’t always work out that way.

For one thing, the figures for jobs created are supplied by the companies themselves, but not independently verified by the Department of Energy. Furthermore, it is too early to say whether the government will get all of its loaned money back when all is said and done.

In the case of Solyndra, according to news reports, the company had drawn down all but about $8 million of its total loan allotment at the time that it announced it would file for bankruptcy. It’s not clear that taxpayers will get any of that money back. And while the Solyndra project was responsible for creating 3,000 construction jobs, according to the company, nearly 1,100 people lost their jobs when it announced it was shutting down operations at its solar plant.
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Old 04-06-13, 10:07 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Oh...and if that didn't leave you scratching your head....here is another and one can almost bet that Fisker staff and employees will get Goverment assistance in one form or others....

http://blogs.investors.com/capitalhi...aa-federal-aid

Ex-Solyndra Staff Eligible For TAA Federal Aid; Packages Worth Average $13,000 Each
November 21, 2011

That mean's all of the firm’s 1,100 ex-employees are eligible for federal aid packages, including job retraining and income assistance. The department has valued packages at about $13,000 a head.

Taxpayers will have to cough up yet another $14.3 million as a result of Solyndra’s bankruptcy. They are already on the hook for $528 million in federal loan guarantees to the company that are unlikely to ever be paid back.The Labor Department today announced that it had approved Trade Adjustment Assistance for the former employees of the bankrupt solar panel maker Solyndra.
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Old 04-06-13, 10:13 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by X View Post
I like how people get mad at the company when the government gave them the money to do their epic fail.

Maybe it's because of who did it?
But so did investors. This company just wreaks of fraud.
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Old 04-06-13, 04:33 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

So they spent $225M. Not $525M. The government was hesitant and froze the last $300M of the loan.

I believe in perusing the technology. If it uses small amounts of government money to kickstart, that is fine with me. I don't like how certain companies choose to treat the loans as throw away money. Get a proven product going, and then spend money on opulent facilities (Solyndra).

I think Tesla is doing it right, and Fisker is doing it wrong.
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Old 04-06-13, 11:16 PM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Tesla is doing it...better. I'm not going to say it's doing it "right".

What amazes me is there is absolutely no monitoring of our money being given to these companies...until they file for bankruptcy.
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Old 04-07-13, 09:33 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by Nick Danger View Post
They used $525,000,000 to create 213 jobs?
I suppose those 213 people needed someplace to work, and I doubt they had to bring their own tools or the raw materials to build the cars.
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Old 04-07-13, 10:03 AM
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Re: Fisker Automotive lays off 75% of workers and is near bankruptcy

Originally Posted by DVD Polizei View Post
Tesla is doing it...better. I'm not going to say it's doing it "right".

What amazes me is there is absolutely no monitoring of our money being given to these companies...until they file for bankruptcy.
Well, obviously there was some monitoring for the Feds to freeze the remaining money.

And I find it hard to believe there isn't a mountain of paperwork and reports that have to be completed to get money like this from the Fed's.

The problem is, this is a good program. Giving money to start ups. No one can argue with that (can they). But the real issue is, like the tax code, people will find every nook and detail to skim it and "get away" with what was not the intent.

I remember many years back when I lived in Arizona. They gave huge tax credits to people who converted their cars to NG. The problem? It about broke the state as they put no limits. So people would go buy a $50,000 truck, put in the NG WITH a switch so they could continue to run it on gas and get the Fed's to pay for the conversion and roughly half the cost of the truck.
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