Free Markets, Free People

Obama finally creates jobs. In Finland. With your money.

This is just the theater of the absurd masquerading as government:

With the approval of the Obama administration, an electric car company that received a $529 million federal government loan guarantee is assembling its first line of cars in Finland, saying it could not find a facility in the United States capable of doing the work.

Vice President Joseph Biden heralded the Energy Department’s $529 million loan to the start-up electric car company called Fisker as a bright new path to thousands of American manufacturing jobs. But two years after the loan was announced, the job of assembling the flashy electric Fisker Karma sports car has been outsourced to Finland.

"There was no contract manufacturer in the U.S. that could actually produce our vehicle," the car company’s founder and namesake told ABC News. "They don’t exist here."

That’s just absurd.   Half a billion dollars of taxpayer guaranteed money to a company in Finland with no guarantee that the coal powered cars they’re building would be built here and create jobs here.

Nope, according to the company’s founder, “no contract manufacturer in the US could actually produce the vehicle”.

We’re finding out about that now?  They didn’t know that before they approved the loan guarantees?

Yet another example of government picking winners and losers with your money.  And, as usual, doing a dismal job.  They’d like you to think they do due diligence on these sorts of deals, but example after example point to utter incompetence, not to mention the fact that government shouldn’t be doing this in the first place.

Dumb and dumber at work with your tax dollars.

Don’t you feel all warm and fuzzy inside?

Oh … and it will be the “Volkswagon” of electric cars made for the little people:

Fisker is more than a year behind rolling out its $97,000 luxury vehicle bankrolled in part with DOE money.



Twitter: @McQandO

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33 Responses to Obama finally creates jobs. In Finland. With your money.

  • $1,064,000,000 on two companies. 0 jobs in country. 0% return on investment.  These guys sure have a lot of business savvy don’t they?

    • That was roughly the amount that the Republicans could extract from the Senate and White House for budget cuts.

  • Think of all the rapes and murders that this money could have prevented.

    • Or all the cowboy poetry that will go forever unwritten…

      • I am a cowboy poet,
        Ridin’ a bench in Zuccotti Park.
        My six gun is a drumstick,
        That I’m pounding for the cause.
        The howlin’ coyotes are singin’,
        “We are the 99”
        A restless herd of morons,
        Being led from the behind.


  • Combining the VERY best features of East German central planning AND fascist economics to bring you coal-powered cars!!!

    As I calculated in my earlier Forbes article, one needs to multiply the EPA MPGe by .365 to get a number that truly compares fossil fuel use of an electric car with a traditional gasoline engine car on an apples to apples basis. In the case of the Fisker Karma, we get a true MPGe of 19.
    ***This makes it worse than even the city rating of a Ford Explorer SUV.***
    Congrats to the Fisker Karma, which now joins corn ethanol in the ranks of heavily subsidized supposedly green technologies that are actually worse for the environment than current solutions.
    Postscript: I will say, though, that the Fisker Karma does serve a social purpose — Hollywood celebrities and the ultra rich, who want to display their green credentials, no longer have to be stuck with a little econobox. They can now enjoy a little leg room and luxury.

    • The math breakdown for anyone interested:

      10,400 BTU’s are needed for the average coal power plant to generate 1KW\H

      Each KWH is truely 3214 BTU’s worth of energy (works out to 32.8% efficiency)

      Each gallon of gas has 115,000 BTU’s of potential energy.

      11.05 KWH per Gallon / .328~

      Dude, it’s called a Karma, OF COURSE it has worse mileage.

      • And why the FLUCK would anyone buy one of these if they could buy a Porsche Panamera S Hybrid…!?!?!?
        I mean, Porsche is an ACTUAL car maker…

        • Well, we had to give these loans to find out what they were going to do with them…..
          er, we had to give these loans to find out who was going to get them…..
          er…..we had to give these loans to find out what country they were going to….
          er…..oh what the hell, shut up your right wing racist or we’ll come round to your place and rough you up.

  • Per Drudge 3 Obama donors and of course Al Gore have ties to the company.

    • Oh!  That’s just a coincidence!
      If we didn’t back this loan, no doubt the number of rapes would increase.

  • I will disagree though, this is not absurd, it’s positively criminal.

  • There’s a lot to criticize with government green programs. But a careful reading of this situation reveals the following:
    1. Solyndra was a loan guarantee. Fiskers is a direct loan of government funds under the ATVM program. What’s the difference? If Solyndra had not failed, we would never have had to pay anything. If Fiskers fails, we are SOL.
    2. The ATVM loan is for the production of a mid level sedan to be built in a closed GM factory in Delaware. It is not for the production of the high speed low drag blue car made in Finland. Granted, money is fungible. Despite all their bone headedness, the USG did not give Fiskers $529 million to build a car in Finland.
    3. Based on what Fiskers has said, they may not be able to produce the mid level sedan for another 2 years. This is where I think the government is moronic. 2 years on an unproven design to be mass produced in a factory that needs to be re-tooled. Genius. I have more confidence in Preston Tucker who’s still dead.
    4. Fisker is right about one thing. There are no contract auto makers in the US. The nearest would be Magma in Canda. For whatever reason, they chose a company in Finland. Probably because the cost was lower and or subsidized by the Finnish government.
    Is this a good idea. No, it’s not. My guess is that Fiskers will produce fewer mid level sedans in their Wilmington factory than Preston Tucker.

    • “The loan to Fisker is part of a $1 billion bet the Energy Department has made in two politically connected California-based electric carmakers producing sporty — and pricey — cutting-edge autos.”
      “And while its federal funding is intended to help it mass produce a new $57,400 Model S sedan, the company has no experience in a project so vast.”
      So we subsidized a $97k sedan?  Is that for the 1% or what?
      And $57k is a mid-level?  Pardon my oncoming french outburst WTF!!!!!!!  $57K is Mid level?  In WHO’S economy?  The Hamptons?

    • There are probably more DeLoreans still running than there will ever be Fiskers

    • Good clarification Steve.

    • Rich people don’t like to buy stuff that is made in the USA. Too boring. Now…Finland is very exotic.
      “I’m waiting for my car to be airfreighted from Finland” sounds about right for this crowd.

  • All of these cars are designed for a market of the infamous “1%”
    How does anybody expect the “1%” to buy these vehicles after the government is done taxing every nickel out of them ?
    I predict “EPIC FAIL”

    • Not to worry. The various green subsidies will more than make up for any incrased taxes.

  • Yet another example of government picking winners and losers with your money

    Oh, if only it was that good. What they’ve done here is pick a loser, plain and simple.

    Another example of stimulus money being spent to benefit foreign workers – they allowed companies to bring in foreign workers to do loging in Oregon.

    Excellent short presentation by Klavan on the idiocy that is “green jobs” and Obama’s East German central planning for America.

  • When the Republitards finally take back control from the spoiled brats, there had better be a whole lot of senate hearings on all of these boondoggles and there had better be some Justice dept prosecutions.
    But since it’s the Republitards who knows?

  • Remember when outsourcing was considered horrific by Demoracts and the MSM? (Sorry for the redundancy, by the way.) Yeah, it was under Bush. Funny how attitudes change. I wish I could have the luxury of changing my viewpoints simply on the basis of who’s in office, but I’m an adult. I actually have to have convictions and ethics and morals – y’know, the kinda concepts that liberals can’t grasp (like what 2+2 is).

    • “I wish I could have the luxury of changing my viewpoints simply on the basis of who’s in office”
      Get some progressive educated genius like Erb to explain how up is really down and wet can be dry, depending on what YOU currently need.  English may not be the official language of the country, but it certainly is officially the language of convenient meanings for the left of center.
      We used to call that kind of talking dishonest, but we wouldn’t want to be judgmental or anything.

    • Well, in the male hierarchical world, 2 + 2 is defined to be 4, and of course many Tea Party types think that means all other viewpoints are wrong. But that completely fails to take into account new forms of nurturing, feminist, minority-friendly arithmetic produced by compassionate academic philosophers with advanced degress.

      We post-ideological, caring, chin-pulling pragmatic moderates can see that 2 + 2 is a matter for social consensus. Now we know that 2 + 2 varies in accordance with the needs of scientists attempting to save all of humanity and my kids from inbred, sterile, Nazi-like climate skeptics, like the front page ex-military basket cases who post here. The arithmetic is settled on this, and you must put aside your obsolete training in these things and realize that we moderates have listened to both sides and come to the obvious intermediate solution to our problems. The only thing for you dense righties to do is to agree to sit down and discuss all this, with people like me deciding the ultimate outcome of the discussions because of our advanced degrees.

      Don’t worry, we’ll completely factor in everything you bring up in the discussion, and then handwave most of it away as misinformed or irrelevant. Then we’ll give you a pat on the head for being so reasonable and moderate, and even change the timing a bit on our march to non-ideological, government facilitated utopia just to make you feel better.

      At the end, you’ll probably appreciate the wonder that is Obama, and why all his policies make sense when you look at them right. If you factor in lyrics by Alan Parsons, it all becomes especially meaningful. He’s almost certain to be re-elected. Obama, I mean, not Alan Parsons. Heck, given that we have a year before the election, we should all just agree on that, and we can then offer other, more refined predictions a day or two before the election. Which will totally take the place of the predictions I’ve been making for two years now that Obama will definitely be re-elected. No matter how different they are. I decree it.

      So relax, and don’t worry about those wonderful Finnish people getting some money from Americans to make cars. They are wise Europeans, and thus their judgment is far better on economic matters than ours, so I’m sure they’ll spend it better. I’ve travelled to Europe, you know, and I did a thesis on German foreign affairs, so you can again count on my interpretation as totally being correct. And don’t even start about links or any of that stuff. Why, I don’t even do that on my own blog, where I write long, chin-pulling, number-filled posts that are not either cribbed from other sources I don’t cite. Nope, I do research. Because copy and paste from more than one source, or even just one if I’m busy, is totally research, and not just copying to sound wise and above it all.

      Oh, and definitely come on over and read my gloating analysis concerning the end of the Iraq war, which was the biggest foreign policy mistake in history. Now, finally, we’ll all see that the Surge was a failure and that I was right all along about the whole thing.

      Just as I’m right about climate change, and economics, and election predictions, and the grave threat from giant magenta caterpillars with Sarah Palin’s face and ample bosom. Especially the ones wearing those naughty librarian glasses. One of them just winked at me, so I think it’s time to take my fortifying blue pill and start fighting them again. Ta, ta.