Feds To Auction Green Technology Loan Made to Fisker Automotive


  • 2012 Fisker Karma Picture

    2012 Fisker Karma Picture

    The U.S. Department of Energy is auctioning off a green technology loan made to Fisker Automotive. | September 18, 2013

Just the Facts:
  • The U.S. Department of Energy is auctioning off a green technology loan made to Fisker Automotive, a move that may signal new life for the maker of the $109,000 Fisker Karma.
  • The move comes "after exhausting any realistic possibility for a sale that might have protected our entire investment," wrote Peter Davidson, executive director of the DOE's loan program office, in a blog post late Tuesday.
  • The auction may pave the way for another group to take control of Fisker.

WASHINGTON — The U.S. Department of Energy is auctioning off a green technology loan made to Fisker Automotive, a move that may signal new life for the maker of the $109,000 Fisker Karma.

The move comes "after exhausting any realistic possibility for a sale that might have protected our entire investment," wrote Peter Davidson, executive director of the DOE's loan program office, in a blog post late Tuesday.

He added: "The department announced today that we are auctioning off the remainder of Fisker's loan obligation, offering the best possible recovery for the taxpayer."

The auction may pave the way for another group to take control of Fisker.

The DOE stopped disbursements to Fisker in June 2011 after the company fell short of what the government called "rigorous milestones" that were set up as a condition of the loan.

"As a result, while our original loan commitment was for $528 million, only $192 million was actually disbursed," Davidson wrote. "In addition, the department has already recouped more than $28 million from the company's accounts."

The DOE says that Fisker represents approximately 2 percent of its advanced vehicle loans and "barely one half of 1 percent of our overall loan program portfolio."

"Even after accounting for all possible losses on the Fisker loan, expected losses to date only represent about 2 percent of our overall loan program portfolio of approximately $34 billion," Davidson wrote.

All Fisker bids must include "a commitment and business plan that promotes domestic manufacturing capabilities and related engineering for advanced technology vehicles here in the U.S.," the DOE said.

The auction is scheduled for October 11 with bids due on October 7.

There have been several suitors for the maker of the Fisker Karma, a plug-in hybrid, according to media reports. The company has not produced a car in over a year.

Fisker Automotive could not be reached for comment. The phone at its headquarters in Anaheim, California has been disconnected.

Edmunds says: Could Fisker Automotive be on the brink of a comeback?

Leave a Comment
ADVERTISEMENT
ADVERTISEMENT

Marketplace

up2drive

Get Pre-Approved for a Loan


Car.com

Credit Problems?
We can help you get Financing!

ADVERTISEMENT