US Loan Goes To Company Building Cars in Finland

Friday, 21 Oct 2011 12:57 PM

By Andra Varin

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The U.S. Department of Energy is defending its $529 million loan to a startup electric car company that will be building its first line of vehicles in Finland.

ABC News reported Thursday that Fisker Automotive had decided to outsource the job of assembling its new electric Karma sports car in the Nordic nation. Its reason for choosing Finland, the company's CEO said, was that the U.S. lacked facilities capable of doing the work.

"There was no contract manufacturer in the U.S. that could actually produce our vehicle," Henrik Fisker ABC News. "They don't exist here."

Vice President Joe Biden had touted the loan to the company as bringing new manufacturing jobs to Americans. Instead, about 500 jobs will go to a Finish company called Valmet Automotive.

Fisker insisted that the U.S. loan had been spent on engineering and design work that was done in the United States.

An Energy Department spokesman reiterated that in a written statement to Fox News.

"The Department's funding was only used for the U.S. operations," spokesman Dan Leistikow said. "The money could not be, and was not, spent on overseas operations. The Karma also relies on an extensive network of hundreds of suppliers in more than a dozen U.S. states."

News of the Fisker outsourcing comes as the Obama administration faces increasing criticism over the Energy Department's $535 million loan to solar panel manufacturer Solyndra, which has since gone bankrupt. The FBI and a congressional committee have launched investigations into the company's collapse amid questions about how the Energy Department allocates funds in its program to encourage green energy.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama Under Pressure to Break 'No Boots on the Ground' Pledge

Saturday, 20 Sep 2014 07:37 AM

President Barack Obama's military campaign against Islamic State group extremists has already crept beyond the narrow pa . . .

Intruder Makes it Through White House Front Door

Saturday, 20 Sep 2014 07:13 AM

The Secret Service is coming under intense scrutiny after a man who hopped the White House fence made it all the way thr . . .

Turkish Explanation of ISIS Hostage Release Raises Questions

Saturday, 20 Sep 2014 12:25 PM

Turkish authorities say they have freed 49 hostages from one of the world's most ruthless militant groups without firing . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved