California firms pull in nearly $1 billion in loans to ramp up hybrid car production

[Regis Philbin]

$$$ Ka-Ching! $$$

Follow the money, baby. That's what this whole global warming hoax is all about---money. Money for Al Gore. Money for George Soros. Money for environmental elitists worldwide.


http://online.wsj.com/article/SB125383160812639013.html?mod=WSJ_hpp_MIDDLTopStories

Gore-Backed Car Firm Gets Large U.S. Loan

By JOSH MITCHELL and STEPHEN POWER

WASHINGTON -- A tiny car company backed by former Vice President Al Gore has just gotten a $529 million U.S. government loan to help build a hybrid sports car in Finland that will sell for about $89,000.

The award this week to California startup Fisker Automotive Inc. follows a $465 million government loan to Tesla Motors Inc., purveyors of a $109,000 British-built electric Roadster. Tesla is a California startup focusing on all-electric vehicles, with a number of celebrity endorsements that is backed by investors that have contributed to Democratic campaigns.

The awards to Fisker and Tesla have prompted concern from companies that have had their bids for loans rejected, and criticism from groups that question why vehicles aimed at the wealthiest customers are getting loans subsidized by taxpayers.

[Richard Tafoya]

LA Times:
http://www.latimes.com/business/la-fi-fisker23-2009sep23,0,6092445.story
In its latest bid to help finance the car of tomorrow, the Obama administration said it would lend more than $500 million to Irvine-based Fisker Automotive Inc. to develop a pair of plug-in hybrids.

The loans, announced Tuesday, come from a $25-billion Department of Energy program to fund development of alternative vehicles. According to the administration, the funding will help create or save 5,000 jobs at Fisker and its suppliers.

The $528.7-million low-interest loan "is another critical step in making sure we are positioned to compete for the clean-energy jobs of the future," Energy Secretary Steven Chu said. Over the summer, the department lent $8 billion to a variety of other automakers and suppliers under the same program.

The loans to Fisker are sure to spur the rivalry between it and Tesla Motors Inc., maker of a $109,000 all-electric sports coupe called the Roadster. Tesla, based in San Carlos, Calif., was awarded $465 million in Energy Department loans in June, primarily to build its second all-electric car, a sub-$50,000 sedan, in California.

Fisker plans to use $169.3 million of its loan to finish development and production of its $87,900 plug-in hybrid sedan, the Karma. That car will not be built in the U.S. Instead, Fisker is contracting Valmet Automotive Inc., a Finland-based company, to assemble the Karma. Still, the Energy Department estimates that 65% of the vehicle's parts will come from U.S. suppliers.

Fisker will use the majority of the loan funds to develop its next-generation vehicle, called Project Nina: a "family-oriented, user-friendly" plug-in that would be built in the U.S. and cost $47,400. The automaker hopes to sell 75,000 to 100,000 of the cars per year, starting in 2012. Fisker has not yet announced a location for its U.S. production facility, although it does have an engineering office in Pontiac, Mich.

[Richard Tafoya]

Innovations typically happen at the high end of mass consumer product lines, where the premium on boutique production is more easily absorbed.

Once the technology is proven at that level, ramping up and refining production can scale the processes to lower price points, which can allow them to be included in general consumer car models later.

Also, Al Gore has no personal investment in Fisker. He was recently named as one of 31 general partners in Silicon Valley VC firm Kleiner Perkins. Like any VC firm, Kleiner invests early-stage money in startup companies.

Their current portfolio lists over two hundred companies that they made early-stage investments in, including AOL and Google. Have a look here: http://www.kpcb.com/portfolio/portfolio.php

[Richard Tafoya]

And for the sake of context, the Kisker and Tesla loans are dwarfed by the previous loans made to Ford and Nissan for their own hybrid development initiatives.

Venturebeat:
http://green.venturebeat.com/2009/06/24/government-dumps-funds-on-electric-car-biz-including-465m-for-tesla/
After months of limping along on media hype and limited funds, Ford, Nissan and Tesla Motors have finally had their big electric vehicle pay day — receiving $5.9 billion, $1.6 billion and $465 million in low-interest loans respectively from the U.S. Department of Energy to revamp their factories and push forward ambitious production schedules.

The loans are part of the DOE’s $25 billion Advanced Technology Vehicles Manufacturing Loan program, which drew more than 100 applications. In order to qualify, a company needs to manufacture the vehicles or components in the U.S. and work toward improving the fuel economy by at least 25 percent since 2005 measurements. The three companies announced yesterday were simply the first round to benefit. Most notably, perhaps, those eligible for loans need to be deemed financially viable — a term that knocked GM and Chrysler out of the running.

Even though Nissan and Ford have been making headway on electric cars appropriate for the mass market, Tesla still seems to be the company to watch, with much of the news on the loans focusing on what this will mean for the startup. Pairing the $465 million with the $50 million investment it just received from Daimler, it should have enough to accelerate development of its Model S sedan, a model that will supposedly be more affordable for middle class consumers at $49,900 (after federal tax credits).

Based in San Carlos, Calif., Tesla plans to use $365 million of the sum to equip its manufacturing facility in California. The rest is earmarked for a separate plant to produce electric drive trains and lithium-ion battery packs (one of the company’s more lucrative operations) for other automotive companies. It hasn’t chosen locations for these facilities yet, but has narrowed them down to several finalists. The battery factory is expected to employ 650 people. The Model S assembly plant is expected to employ 1,000 and begin production in late 2011 — still a ways away.

[lions1mew]

Richard, when are you going to learn that Reeg doesn't care about FACTS?? LOL