After a long period of silence the U.S. Department of Energy indicated it will sell the loan it made to Fisker Automotive, confirming that it will likely lose money on the transaction.
The department issued a long statement on the loan and the program that funded it, claiming that most of the loans under the program are up to date and noting that the U.S. auto industry has made a dramatic recovery.
“After exhausting any realistic possibility for a sale that might have protected our entire investment, the Department announced today that we are auctioning the remainder of Fisker’s loan obligation, offering the best possible recovery for the taxpayer,” according to the release. ” Consistent with the intent and statutory purpose of the Advanced Technology Vehicles Manufacturing program, the Department will require all bids to include a commitment and business plan that promotes domestic manufacturing capabilities and related engineering for advanced technology vehicles here in the United States.”
The department earlier suspended the loan for the company and the Wilmington plant where a mid-sized hybrid sedan was to have been built, was put into mothballs.
Gov. Jack Markell is hopeful that this development will resolve Fisker’s future in Delaware.
“While considerable uncertainty remains, we have some direction on a path forward. A resolution is closer, whatever that resolution will be. As this process moves forward, we will do everything we can to ensure that bidders understand the value of Delaware and what we have to offer here,” Markell says.
Click on the link below for the full release from the Department of Energy:
An Update on Fisker Automotive and the Energy Department’s Loan Portfolio | Department of Energy.
