Fisker Puts Their Employees On Furlough, DoE Loan Payment Incoming In April

4 years ago by Jay Cole 6

Fisker HQ Furloughs 200 US Employees This Week

Fisker HQ Furloughs 200 US Employees This Week

It has been no secret that Fisker Automotive has had a troubled history since the Karma first appeared at the 2008 North American Auto Show.  And it looks like things are not getting any better this week.  In fact the bad news seems to be gaining momentum.

Fisker, who saw its CEO, Henrik Fisker, quit abruptly two weeks ago, and its sale to Chinese automaker Geely fall through last week, now finds itself being managed by the Huron Consulting Group in order to save precious cash.

Karma  Production (or rather the lack thereof) Has Been A Major Issue For Fisker Since July of 2012

Karma Production (or rather the lack thereof) Has Been A Major Issue For Fisker Since July of 2012

And when you have not built a single, extended range Karma since July of 2012, and you are virtually out of inventory to sell (less than 100), employees are not high on the list of things you need.

In a statement, Fisker says that they are putting 200 US employees on furlough this week  (what do 200 people actually do everyday at Fisker anyway?), and that everything is completely normal at the company (as always):

“This is a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements,” said Fisker spokesperson Roger Ormisher.

Part of the decision to keep its US workers home maybe have something to do with the $529 million dollar DoE loan (granted in September 2009), and the fact that Fisker’s next payment is due in April.

Reuters

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6 responses to "Fisker Puts Their Employees On Furlough, DoE Loan Payment Incoming In April"

  1. Bonaire says:

    Fisker may soon take on a “brother of Solyndra” role for the pundits.

    In fact, it’s much like Solyndra in its DNA. An “economical” car with many buts:
    – but it’s EPA numbers are much worse than other EREVs.
    – but it’s Karma cost is much higher than EREVs
    – but it looks powerful but isn’t – it’s a moderately powered heavy car
    – but it uses non-standard parts and sizing (ie. A123 batteries, etc.)
    – but it looks really good (so did the Solyndra modules)

    Solyndra attempted to make “solar panels with tubes rather than flat silicon cells”. It attempted to do something different than industry standards at the time. The DoE did poor oversight of their loan and ended up losing out when their product could not even come close to working in the market (too expensive and too non-standard). Fisker’s Karma is also “too expensive and too non-standard” to be a viable car company. DoE also didn’t oversee this well. Foresight in departments like DoE should use deeper scrutiny and industry experts to vet-out loans before they are given. Just because it’s a good idea doesn’t mean it deserves taxpayer funds to take a chance. Betting on Red is a good idea at a casino – almost a 50/50 chance of doubling your money.

    I hope “we” (taxpayers) can get a moderate amount of the loan monies back before this thing shuts down.

    1. kdawg says:

      “but it looks powerful but isn’t”
      ————————–

      The Bob Lutz version is 🙂

    2. Bonaire says:

      News tonight has Fisker talking to bk lawyers.

  2. Open-Mind says:

    IMO, venture capital should be provided by venture capitalists who are risking their own money, not provided by government bureaucrats who are risking other people’s money. The latter is a recipe for corruption and failure.

  3. kdawg says:

    “what do 200 people actually do everyday at Fisker anyway?”
    —————–

    Work on your resume.

    1. Schmeltz says:

      Best comment I’ve read today Kdawg!