HERE is a BRILLIANT Idea. Albeit 3 Years Late.

Found this tidbit while perusing the local rag this afternoon.

Glad to see SOMEONE gets it.  From The Detroit News.com.

 

September 18, 2013 at 6:47 pm

Senator wants to kill program that funded Fisker loans

  • David Shepardson

Can’t make money selling CARS, so sell your “carbon credits” instead. The ONLY thing keeping this joke afloat.

Washington —A Republican senator on Wednesday proposed killing funding for a stalled federal loan program meant to develop fuel-efficient technology. His action came a day after the Energy Department said it will auction off its unpaid $168 million loan to defunct electric vehicle manufacturer Fisker Automotive Inc. — probably at a significant loss to taxpayers.

Sen. John Thune, R-S.D., chairman of the Senate Republican Conference, proposed an amendment to end the $25 billion Advanced Technology Vehicle Manufacturing loan program. It’s not clear if he will get a vote.

Thune said the amendment would “permanently end the ATVM program and save taxpayers from paying for more of President Obama’s bad green-energy bets.”

Created by Congress in 2007, the program hasn’t made a new loan since March 2011, even though it still has more than $16 billion unspent.

Last month, U.S. Energy Secretary Ernest Moniz told The Detroit News that the agency was considering revising lending criteria and seeking a new round of loan requests. But Moniz said Monday that the Energy Department — which had initially received more than 100 applications for loans in 2008 and 2009 — is not actively considering any applications for retooling loans.

The loan program came under scrutiny after two of five companies that received loans halted production.

On Tuesday, the Energy Department said it would auction in early October its $168 million outstanding loan in Fisker Automotive Inc., the electric vehicle start-up that halted production in July 2012. The Energy Department acknowledged it had considered proposals to sell the company, but none would have assured taxpayers won’t lose money.

Earlier this month, the Energy Department sold its unpaid $50 million loan to Allen Park-based VPG to AM General for $3 million; the company agreed to acquire VPG’s MV-1 wheelchair-accessible vehicles. Taxpayers lost about $42 million on that sale.

The program gave preference for low-cost government loans to established automakers to retool older plants to build advanced vehicles, but also allowed startup automakers to take part. The Energy Department has awarded less than $9 billion for auto plant retooling.

Many companies, including General Motors Co. and Chrysler Group LLC, abandoned their requests for loans after years of talks with the department.

But other loans have performed well: $5.9 billion to Ford Motor Co.; $1.4 billion to Nissan Motor Co.; and $465 million to EV startup Tesla Motors, which in May paid off its loans nine years early.

~

Any bets on whether or not this NEEDED shot of fiscal sanity passes? Given the asshats in the Senate, and the worthless RINO’s of BOTH chambers, I have my doubts.

Now I saw this item as a positive story, but, since it DID come out of Detroit, THEY aren’t too happy about it. Hence, the last paragraph:  “But other loans have performed well: $5.9 billion to Ford Motor Co.; $1.4 billion to Nissan Motor Co.; and $465 million to EV startup Tesla Motors, which in May paid off its loans nine years early.”  I noticed the attempt to soft-soap the FACT that the taxpayers ONLY “lost” $95 million between TWO firms. While the “loans are performing well”, I see NO mention of the Ford loan, nor Nissan, having been paid off. And, just WHERE is the “return” to taxpayers? Simple. THERE IS NONE.

I sure hope Thune’s bill passes. About time, nay, PAST time to end the Advanced Technology  Vehicle Manufacturing program. Or as I call it, the automakers’ ATM program. THAT is more like WHAT it is being used for.

~

Clyde

 

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10 Responses to HERE is a BRILLIANT Idea. Albeit 3 Years Late.

  1. Mrs AL says:

    Great post and commentary, Clyde. Here is the paragraph that stuck in my personal craw (I pick up on weird things, I know).

    > “On Tuesday, the Energy Department said it would auction in early October its $168 million outstanding loan in Fisker Automotive Inc., the electric vehicle start-up that halted production in July 2012. The Energy Department acknowledged it had considered proposals to sell the company, but none would have assured taxpayers won’t lose money.”

    Excuse me? “… but none would have assured taxpayers won’t lose money.” Really? Makes it sound like we taxpayers are investors in a business. Uh, NO. Taxpayers are not ‘investors.’ We are taxed for what seems like everything we do or buy. Taxes aren’t investment monies. Grrrrrrr

    Like you I too hope the legislation gets legs and this whoha can be stopped but am not going to hold my breath.

    Sorry for the rant. I get really wired sometimes and, unfortunately for you, the above idea just set me off. haha

  2. Kathy says:

    I wouldn’t bet on it either, Clyde. They’ll never give up money in hand, rather, they’ll waste it in other areas.

    I don’t think our founders had in mind for our government to become a national loan company using our tax dollars and borrowed funds to make bad loans.

    In agreement with Mrs. AL, we taxpayers sure didn’t sign up to be investors.

    • Clyde says:

      Good comment,Kathy. No, the Founders sure as shit had NOT envisioned “The First National Bank of Obama”, nor any other asshat for that matter.

  3. Buck says:

    Hmmmm. I was under the impression Ford was the only one of the 3 big that didn’t take any money from the fed…

    • Kathy says:

      I thought the same thing, Buck. At least that’s the story that’s been rattling around for months now.

    • Clyde says:

      While Ford took monies for, ostensibly, “research”,and retooling for EV’s, the entire corporation wasn’t taken over like GM and Chrysler was. So, whenever you hear someone boasting Ford didn’t take federal money, you CAN call them a liar. Point them to this article. thanks,Buck.

  4. pepperhawk says:

    clyde, one could only hope this would be cut off since tax payers end up bearing the losses but it actually going through I have my doubts. Good for Thune though. This kind of waste must be stopped. GM moved their operation to Mexico and left us holding the bag. Wow, that sure worked. NOT!

    • Clyde says:

      Seems like the taxpayers ALWAYS take it in the shorts. As to GM moving to Mehico, they moved some manufacturing, and assembly. All the R&D, and engineering for North America is done here. They also moved some operations to China. My guess is in the next 10 to 20 years, GM will no longer build cars in the U.S. Thanks for coming by,Pepp.

  5. bullright says:

    But they won’t let us auction off the current government in DC. We’d be further ahead on that loss. Great find Clyde, Excellent summary. Yet they still call this “investing” — that gets me every time.