Oh look, here’s Joe Biden, who’s never had to meet a payroll and never done anything to add value to our nation, coming back to give a sweetheart deal to an Algore eco-fascist enterprise (link):
Fisker unveils Boxwood plans
By ANDREW EDER • The News Journal • October 27, 2009
Fisker Automotive could create as many as 2,500 jobs in the next five years as it renovates and reopens the Boxwood Road plant near Newport to build plug-in hybrid electric cars.
The startup automaker announced its plans this morning at an event at the former General Motors factory, with officials including Vice President Joe Biden and Gov. Jack Markell in attendance.
Irvine, Calif.-based Fisker plans to use some of the proceeds from a $528 million U.S. government loan at the Boxwood plant, idle since July when General Motors ended production there. Fisker signed a letter of intent with Motors Liquidation Co. to purchase the plant for $18 million. Motor Liquidation is the legal entity disposing of unwanted GM assets in bankruptcy court.
The company expects to spend at least $175 million revamping the Boxwood plant to build a family-oriented sedan under development. Production would not begin again at the 62-year-old factory until 2012.
Fisker’s first car, the Karma, a luxury sedan with a starting price of $87,900, is being built in Finland by contract automaker Valmet Automotive. The company’s next car — known as “Project Nina” — will be a family sedan that’s expected to sell for about $40,000 after a $7,500 federal tax credit.
Fisker predicts Project Nina will ultimately create or support 2,000 factory jobs and more than 3,000 vendor and supplier jobs by 2014, as production ramps up to full capacity of 75,000-100,000 vehicles per year.
The company expects to eventually make both models at the Boxwood plant.
Boxwood was selected for its size, production capacity, world-class paint facilities, access to shipping ports, rail lines and available skilled workforce, officials said.
“This is a major step toward establishing America as a leader of advanced vehicle technology,” said Fisker CEO, Henrik Fisker, in a statement. “Wilmington is perfect for high quality, low volume production and will soon be the proud builder of world-class, fuel-efficient Fisker plug-in hybrids.”
Fisker plans to spend $175 million to refurbish and retool the factory over the next three years.
The company will be able to tap into a regional work force of experienced auto workers who were displaced after the closure of the Boxwood plant and Chrysler’s Newark assembly plant last December. Fisker is in talks with United Auto Workers union officials and expects to employ UAW members at the Boxwood factory.
To lure Fisker, Delaware officials offered the company a 5-year, $12.5 million loan at zero interest to make improvements to the plant’s structure, including a new facade and new plumbing, ventilation and lighting systems. If the plant employs 2,500 workers and Fisker has spent at least $175 million renovating the facility after five years, the loan would convert to a grant.
The state has also offered Fisker a $9 million grant to offset utility costs at the plant. New Castle County has offered to abate property taxes at the plant for five years, an incentive worth an expected total of $1.3 million.
First, it’s important to note Mr. Fisker has used the frequently used non-value-added govt-funded business development line of “by injecting taxpayer dollars into (fill-in-otherwise nonexistent product), (State or nation) is becoming a leader in the (fill-in-blank)”. He’ll wind up turning over the company leaving himself and the other eco-fascists with a lot of wealth generated by other people’s (taxpayers’ and future taxpayers’) risk. We can smell this BS a mile away.
But of course, Mr. Fisker and his “venture socialist” (as opposed to venture capitalist) friends like Algore (link) put some of their own money on the line, lobby the right people, and get the big payback, “making it big,” when their socialist elected officials back the product at the expense of the taxpayer.
In case you needed evidence that we’ve gone completely insane, consider this (quoted from the mysterious Mr. Danneskjold’s comment):
- US Department of Energy loan (paid for by taxpayers): $528 Million
- State “loans” (won’t be paid back): over $20 Million
- Favorable pricing from Govt Motors ( US taxpayers) on the property: $30M?
- Subsidy (US Taxpayers) to make an “affordable” $40,000 car that’s never been proven to have demand on an open market: An estimated ($7500 credit per car * 100,000 cars/yr at max capacity) $750M/year
- Having a $65k a year Union job that cost taxpayers $531,000 per job to create and over $300,000 a year (tax credits) to sustain: PRICELESS!
Socialism is here. And when the bill comes due from our Communist Chinese backers, it ain’t gonna be pretty. The wealth of this nation is being plundered by eco-fascists. Riddle me this, all you Obama supporters: when we have huge current and projected deficits and real unemployment at over 15%, why are Democrats helping to finance luxury sedans that middle class workers can’t even afford?