Fisker Automotive—the US electric car company that failed to repay roughly $139 million in federal loans [out of an original loan total of $192 million] before going bankrupt—is now owned by a Chinese company eager to unleash its cut-rate acquisition on the American auto industry.
The company’s assets were acquired earlier this year by China’s biggest auto parts supplier, Wanxiang Group, for $149.2 million in a US bankruptcy auction.
Wanxiang acquired A123 Systems [Fisker’s battery supplier] in a 2012 bankruptcy sale, after the company failed to repay millions to the same federal loan program that helped Fisker.
[Wanxiang] plans to produce the vehicles in Finland
Despite that wonderful record—which includes two failures in its five loans before the program was suspended—DoE intends to restart the Advanced Technology Vehicles Manufacturing Loan Program that was responsible for those losses. But it’s all good:
The department said it revised the application processes for the Advanced Technology Vehicles Manufacturing Loan Program to speed up reviews, and is reaching out to manufacturers of auto parts and components to participate.
Yet this will allow for even more slip-shod DoE “vetting.” And now they’re actively pushing more loans? See here for how well suited the Federal government is for managing business programs.
And never mind that the Obama administration’s DoE “green” energy loan program is such a success that that American electric car company that defaulted (some might say welched) on a DoE energy loan is now a People’s Republic of China electric car company.
Sort of like the bailout of a couple of failed American car companies was so successful that one of them is now an Italian car company.