Fox News Flat Out Lies About U.S. Electric Car Companies

[nuclearfm]

In reports on FoxNews.com, America's Newsroom, and Your World, Fox News repeatedly advanced misinformation about Department of Energy loans recently granted to Fisker Automotive and Tesla Motors to support development of fuel-efficient vehicles, suggesting that those funds would be ill-spent. The false or misleading claims include: that the loans will be used to build cars that cost $89,000 and $109,000; that the loans will finance foreign manufacturing; and that Fisker and Tesla are European companies

Both companies are U.S. based and manufacture in the states.

WE51Iua7Ya4


RESS RELEASE:

FISKER AUTOMOTIVE RESPONSE TO FALSE REPORTING OF DEPARTMENT OF ENERGY LOAN ANNOUNCEMENT

IRVINE, CA -- Oct. 2, 2009: American automaker Fisker Automotive was recently approved for a conditional loan of $528 million by the Department of Energy (DOE). While news reports were mostly factual, some ignored or marginalized the truth, or sensationalized irrelevant aspects of the loan and our company. Fisker Automotive would like to present the facts.

Fisker Automotive is an American car company based in Irvine, California.

The company's goals are to help restore the U.S. as a leader in the global auto industry and to eliminate America's dependence on foreign oil.

These DOE funds will help Fisker Automotive create or save at least 5,000 U.S. jobs, bring to market affordable, American-made plug-in hybrid vehicles and save more than 821 million gallons of gasoline (43.2 million barrels of oil) by 2016.

No DOE funding will be used for overseas operations.

Through private funding, and at no cost to taxpayers, the company has already supported hundreds of American jobs by partnering with major auto suppliers to develop the world's first production plug-in hybrid car, the Fisker Karma.

This will put the American auto industry ahead of foreign competition.

The Karma has been designed and engineered in the U.S. with the majority (65% by cost) of its parts sourced from American suppliers. Fisker Automotive searched for a U.S. plant to assemble the Karma, but none were willing or able to build the 15,000 of these advanced vehicles per year Fisker required.

The low-volume Karma will therefore be assembled in Finland by Valmet Automotive, one of the most respected contract auto builders in the world.
The next generation Karma will be built entirely in the U.S.

The Karma is a technology leader necessary to reduce costs for Project NINA, the development of a more affordable, family-oriented plug-in hybrid vehicle to be made in America at a retooled assembly plant in 2012. The resulting vehicle will sell for about $39,900 after federal tax credits.

Engineering on Project NINA has already begun.

Fisker Automotive expects to export half its vehicles, the most of any American car company.

As reported by the DOE, $169.3 million of the loan will be used by Fisker Automotive as the company works with primarily U.S. suppliers to complete engineering work on the Karma. This work will be conducted in Pontiac, Michigan and Irvine, California.

The remaining $359.36 million will support Project NINA and its manufacture of 75,000-100,000 plug-in hybrids per year at a retooled U.S. assembly plant, beginning in 2012.

The DOE loan is conditional. In order to receive the funds Fisker Automotive must meet very specific milestones. Money is disbursed in small amounts only if the company successfully reaches these milestones.

The funds will be repaid, with interest, to the American taxpayer.

Some have asked questions about the cost of the cars.

Any new technology is expensive. Televisions, cell phones, refrigerators and even cars themselves were once too expensive for most. In time, however, costs come down. The same will happen with Fisker's plug-in hybrid electric vehicles.

The DOE loan to Fisker Automotive represents just two percent of the agency's $25B Advanced Technologies Manufacturing Loan Program (ATVMLP), created by Congress in November 2008 to help promote the development of energy-efficient, advanced-technology vehicles.

American cars have long been underrepresented in the global marketplace, especially those in premium segments. The U.S. used to be known for building the most exciting and desirable cars in the world. It is time America is again at the forefront, and gives buyers the choice to purchase a desirable environmentally friendly car.

When it comes to cars, an environmental strategy is no longer an option, it is a necessity. With the help of the Department of Energy, Fisker Automotive is taking action and making an investment in the future. We are immensely proud of what we are doing, and that we are doing it here in America.

It is unfortunate how false information can be disseminated and it is our intention to correct as much of it as possible.

--Henrik Fisker, CEO

[MiamiHeat]

there needs to be an investigation into how to prevent companies from buying/creating news media outlets in order to spread misinformation and further their own political agendas.

[chode_regulator]

Well last report I saw did say that evne Tesla's low end model is still like 40 grand or something, well beyond most peoples means.
However, I would rather have seen the govt hadn out 30 billion to these dudes than to GM or to hand out 15 billion to them instead of Chrysler. I mean if everyone is 'actually serious' about going green and getting to the next level, teh govt would be giving more money to these companies.
Seems to me this is just more hypocrisy out of our govt then anything, dems and repubs alike.

[boutons_deux]

"companies from buying/creating news media outlets in order to spread misinformation and further their own political agendas."

aka VRWC. Corporations lying to people to sucker them out of their money is free speech. There is no political or "Christian" agenda, only money agendas.

[George Gervin's Afro]

Does this surprise anyone? I still cannot believe that there are people in this country who only get their news from talk radio and fox news. Please save the biased msm crap. There is bias in all reporting so it's imperitive that any informed person get their news from multiple sources and not strictly from the blogosphere or traditional partisan websites.

For those of you who bring up the fact that I criticize talk radio and fox news all of the time fail to get it. it should tell you morons I get my news from multiple resources and don't rely on sources that I completely agree with to get my news. You guys are an embarassment and I'm referring to both sides of the aisle.

[DarrinS]

I'm outraged.


The Tesla roadster is only $101,500 and the cheapest Fisker vehicles are only $87,900.

[Wild Cobra]

OK Nuc, You're going to have to explain to me the lie. I didn't see any flat out lies in the reporting. The jobs are initially going to Finland. If this was a good product, US private investors would come running to this for a capitol venture.

Please explain.

Oh, please note, if this actually is not exaggerating the created jobs, its at a cost of $105,600 per job.

[boutons_deux]

"Tesla roadster is only $101,500 and the cheapest Fisker vehicles are only $87,900."

Initial runs of any new product are typically much higher. As economies of scale, design improvements, market success/acceptance arrive, the prices will go down. But there are some expensive components that will keep plug-ins quite expensive for the foreseeable future.

Even the plug-in Chevy will be about $40K, IIRC.

[jack sommerset]

OK Nuc, You're going to have to explain to me the lie. I didn't see any flat out lies in the reporting. The jobs are initially going to Finland. If this was a good product, US private investors would come running to this for a capitol venture.

Please explain.

Oh, please note, if this actually is not exaggerating the created jobs, its at a cost of $105,600 per job.

You are asking Nuc to tell the truth.

[George Gervin's Afro]

"Tesla roadster is only $101,500 and the cheapest Fisker vehicles are only $87,900."

Initial runs of any new product are typically much higher. As economies of scale, design improvements, market success/acceptance arrive, the prices will go down. But there are some expensive components that will keep plug-ins quite expensive for the foreseeable future.

Even the plug-in Chevy will be about $40K, IIRC.


These DOE funds will help Fisker Automotive create or save at least 5,000 U.S. jobs, bring to market affordable, American-made plug-in hybrid vehicles and save more than 821 million gallons of gasoline (43.2 million barrels of oil) by 2016.

No DOE funding will be used for overseas operations.

If fox left this out of the report then they are not telling the truth.

[Wild Cobra]

You are asking Nuc to tell the truth.

I know he'll run from it, but I thought I'd give it a shot.

[Wild Cobra]

No DOE funding will be used for overseas operations. If fox left this out of the report then they are not telling the truth.
Then they don't need the money.

[George Gervin's Afro]

Then they don't need the money.

But they lied about the funding.

Thanks

[CosmicCowboy]

But is it REALLY a wise use of our tax dollars to subsidize $90,000 luxury sports cars built in Finland? Remember, this isn't really money we have. It's money we have to borrow from China to loan to Al Gore's company...I assume you guys knew that Gore is a big investor in Fisker?

[Winehole23]

I heard that too. That's some coincidence.

Must be a dam fine car company.

[Winehole23]

Why do you hate green technology, CC?

[CosmicCowboy]

Why do you hate green technology, CC?

LOL

I don't hate green technology. In fact, I'm pretty sure I use green technology more than you do. I have a rainwater collection system at the ranch and use solar panels extensively. I did a lot of passive solar/energy conserving stuff in the house I built there...I'm in the process of designing an organically interlocked pilot production system for algae oil, algae, poultry, prawns, and tilapia while you play video games and jerk off.

Why can't you admit that the fact that Fisker is basically owned by Kleiner Perkins (of which Gore is a partner) and whose main product is a $90,000 sports luxury car that just MAYBE there is a conflict of interest in them getting millions of dollars in Federal funds?

[Winehole23]

I don't hate green technology. In fact, I'm pretty sure I use green technology more than you do.I know. I did it for the LOLZ.


Why can't you admit that the fact that Fisker is basically owned by Kleiner Perkins (of which Gore is a partner) and whose main product is a $90,000 sports luxury car that just MAYBE there is a conflict of interest in them getting millions of dollars in Federal funds?Admit it? I never challenged it.

Maybe there is a conflict of interest. Would you care to spell out that conflict for us, as you see it?

[CosmicCowboy]

conflict of interest:

A typical startup:

1) inventor (Fisker) has idea looks for investor.
2) "angel" investor (Kleiner Perkins) advances money for startup and takes majority position in company in exchange for investment.
3) Company produces product, proves concept
4) "angel" investor gives up significant stake in company in IPO or private placement to take company to next level and production/profit phase.

This time:

1) Fisker has idea/concept
2) Kleiner Perkins gets majority stake in company for providing cash/political stroke
3) Kleiner Perkins gets "free" money from Federal government to not only get original investment back but to "prove" concept and put it into production...doesn't have to give up ANY equity despite risk of investment.
4) If product/company fails the only loser is taxpayer...Kleiner Perkins and Fisker walk away.

[Winehole23]

It's a sweet deal for Fisker. But pointing out the difference between private R&D and subsidized R&D doesn't get you to conflict of interest.

[admiralsnackbar]

But is it REALLY a wise use of our tax dollars to subsidize $90,000 luxury sports cars built in Finland? Remember, this isn't really money we have. It's money we have to borrow from China to loan to Al Gore's company...I assume you guys knew that Gore is a big investor in Fisker?

I think some of it has to do with economies of scale. The US gov't is subsidizing research into efficient hybrid cars... now they could lease the technology/research from Toyota which would save short-term money on R&D but make each car more expensive (since each car would be an instance of leased tech), or spend the money on an American firm with the understanding that the investment be for the creation of affordable hybrid technology. The second solution costs more to begin, but it yields a cheaper product once millions of units go into production, saving you, the consumer, money.

As for Gore, I recall him going before the Senate to testify that his foundation invested in green tech in a non-profit capacity.

[CosmicCowboy]

If they really wanted to do economies of scale they wouldn't be trying to produce a luxury sports car to compete with BMW and Mercedes, they would be trying to produce a car to compete with the Honda Civic.

[admiralsnackbar]

If they really wanted to do economies of scale they wouldn't be trying to produce a luxury sports car to compete with BMW and Mercedes, they would be trying to produce a car to compete with the Honda Civic.

That may be so for now, but it doesn't mean they won't freely license the technology they're developing to American companies when it's time to pay the piper -- hard for either of us to say without the information available, I reckon.

It makes sense to me from a marketing standpoint, though: the biggest obstacle to buying a hybrid for some people is that it's a wimp-mobile. If Tesla can develop desirable muscle cars for celebrities, it could take some of the sting off of Joe Six-pack buying lesser Mustang/Camaro-type hybrid sportscars or trucks when they come along. Just speculation, of course.

[mogrovejo]

Well done the OP for defending a couple of European millionaires taking money from the American taxpayer.

[boutons_deux]

I bet they HAD to decide to go high-end for first runs, since they knew they couldn't get the economies of scale and the expensive battery prices lowered.

"we can't go cheap mass market, parts too expensive, don't have the capacity.

We can't go in the middle, don't have a family sedan and construction capacity

So we go high end, which is less price sensitive, and we can build to the smaller demand, market size"

[boutons_deux]

btw, WAY OT, talking about high end:

Twice I've seen a black Maybach, chauffered (of course), opaque windows, heading south on 10, then east on 410, then south on 281. both times about 6:15 PM

I figure it's somebody from the Dominion.

Anybody guess or know who?

[mogrovejo]

It's a sweet deal for Fisker. But pointing out the difference between private R&D and subsidized R&D doesn't get you to conflict of interest.

The most obvious conflict of interest is the one between the taxpayer and the Fisker ownership.

[nuclearfm]

If fox left this out of the report then they are not telling the truth.

Of course they aren't. You'd expect them to recognize that? They'll ignore it along with Wild Cock, Jacks Some off, etc.

[nuclearfm]

The most obvious conflict of interest is the one between the taxpayer and the Fisker ownership.

Speaking of "interest" to the tax payer.

The funds will be repaid, with interest, to the American taxpayer.

[Winehole23]

The most obvious conflict of interest is the one between the taxpayer and the Fisker ownership.True enough, but it's not the one implied by CC, I think. The folklorical gloss of this is that Al Gore being an owner of Fisker and Obama being in the WH somehow makes the subsidy self-dealing or corrupt.

I can understand why eyebrows are raised; but I have yet to hear any persuasive account of Gore's conflict of interest or the government's.

[CosmicCowboy]

Speaking of "interest" to the tax payer.

The funds will be repaid, with interest, to the American taxpayer.

:lmao

IF R&D can actually design the car they are promising. All they have so far is a sexy picture of a proposed body style and a bunch of hot air.

Do you REALLY think that if it was that easy that Toyota and Honda wouldn't have already done a 150mph prototype with a 50 mile range?

THEN they have to build it and sell it at a profit before they can make a dime.

15,000 units a year? how much profit per unit does your fantasy want them to make? $10,000?

they STILL can't pay the loan off. End of story. Taxpayer fucked again.

[nuclearfm]

:lmao

IF R&D can actually design the car they are promising. All they have so far is a sexy picture of a proposed body style and a bunch of hot air.

Do you REALLY think that if it was that easy that Toyota and Honda wouldn't have already done a 150mph prototype with a 50 mile range?

THEN they have to build it and sell it at a profit before they can make a dime.

15,000 units a year? how much profit per unit does your fantasy want them to make? $10,000?

they STILL can't pay the loan off. End of story. Taxpayer fucked again.

Tesla is already paying back their loans. They're even expanding. Shows how much you know.

Toyota has already done it, the RAV 4 EV. They used batteries under the GM label and it was quite successful. GM sold the battery patent and licensing to Chevron and they haven't been used since. Makes it kind of hard to make a profit if the key technology is being held by a obvious conflict of interest. That is why Li-ion batteries are being used now, NiMH was ready over a decade ago.

[Wild Cobra]

LOL

I don't hate green technology.
I like green technology too. I wish I could recall where I saw the problems associated with the pollution footprint of these electric cars. You see, battery production isn't that green, and green disposal of them is costly...

Anyone know where such linked studies are by chance?