creators.com opinion web
Liberal Opinion Conservative Opinion
Daily Editorials
22 Sep 2014
'Worst' tax Code Behind Corporate Flight

It's not corporate greed or a lack of patriotism that is driving American corporations overseas, as President … Read More.

22 Sep 2014
A Small Victory for Free Speech Online

They say you can't legislate morality. Even if that sentiment usually means you shouldn't legislate morality, there'… Read More.

19 Sep 2014
A Canadian-Brazilian Whopper, Hold the Taxes and Jobs

So who's up for a Rio-Toronto Whopper? Burger King, owned by 3G Capital, the same Brazilian billionaires who … Read More.

Lawmakers Flay Fisker

Comment

Rep. Jim Jordan, R-Ohio, wasn't very charitable last week to Fisker Automotive, the foundering start-up electric carmaker.

As Cathy Taylor reported from Washington, D.C., Rep. Jordan, chairman of the House Oversight subcommittee on economic growth, job creation and regulatory affairs, said Fisker never should have received federal tax dollars to build what he described as "luxury, novelty" electric cars.

That Fisker was provided l $528.7 million by the feds, $192 million of which it actually deposited in its corporate bank account, proves that the near-bankrupt company's "North Star was the political winds of Washington," said Rep. Jordan.

It gives us absolutely no pleasure to see a start-up company pilloried. Yet, Rep. Jordan was correct in saying that President Obama's Energy Department had no business misinvesting in Fisker.

As the subcommittee chairman noted, the Energy Department, headed at the time by Steven Chu (whom President Obama recruited from the University of California, Berkeley), gave the electric carmaker taxpayer dollars despite the fact that the start-up was undercollateralized, had Triple C-plus (junk-grade) credit and couldn't meet its payroll.

And that was long before its latest troubles.

Indeed, the telltale sign that Fisker might be in its death throes was the untimely resignation last month of Henrik Fisker, who in 2007 co-founded the company that bears his name.

That was followed this month by reports that Fisker laid off 160 of its 215 remaining employees without advance notice, that it was preparing to file Chapter 11 bankruptcy, and that it was desperately seeking buyers or investors save the company from going completely out of business.

No one could have been more chastened at last week's hearing than Fisker, the Danish auto designer, who remains the face of his former enterprise.

"You know your place in history," Rep. Darrell Issa, R-Calif., told him. "Innovative cars have a history of failing," he said, alluding to vehicles brought to market by such figures as John DeLorean, Preston Tucker and Harry Stutz, among others.

But there is a big difference between DeLorean, Tucker and Stutz and Fisker: Those former carmakers never received handouts courtesy of the American taxpayers.

Their companies lived and, ultimately, died on their own. And, by virtue of that, they were not nearly the failures that latter day Fisker has proven to be.

REPRINTED FROM THE ORANGE COUNTY REGISTER

DISTRIBUTED BY CREATORS.COM



Comments

0 Comments | Post Comment
Already have an account? Log in.
New Account  
Your Name:
Your E-mail:
Your Password:
Confirm Your Password:

Please allow a few minutes for your comment to be posted.

Enter the numbers to the right:  
Creators.com comments policy
More
Newspaper Contributors
Sep. `14
Su Mo Tu We Th Fr Sa
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 1 2 3 4
About the author About the author
Printer friendly format Printer friendly format
Email to friend Email to friend
View by Month
Newspaper ContributorsUpdated 22 Sep 2014
Marc Dion
Marc DionUpdated 22 Sep 2014
Deb Saunders
Debra J. SaundersUpdated 21 Sep 2014

31 Mar 2011 Smaller Schools Do Well Off the Court, Too

5 Feb 2013 New Economy Requires Unions to Adapt

3 Jan 2013 Mental Illness Rises on the Agenda