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

A tiny car company (Fisker Automotive Inc.) 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 (The Karma) 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.

“This is not for average Americans,” said Leslie Paige, a spokeswoman for Citizens Against Government Waste, an anti-tax group in Washington. “This is for people to put something in their driveway that is a conversation piece. It’s status symbol thing.”

The Karma will target an exclusive audience — Gore was one of the first to sign up for one.

Fisker’s top investors include Kleiner Perkins Caufield & Byers, a veteran Silicon Valley venture-capital firm of which Gore is a partner. Employees of KPCB have donated more than $2.2 million to political campaigns, mostly for Democrats, including Obama and Hillary Clinton, according to the Center for Responsive Politics, a nonpartisan group that tracks campaign contributions.

Read the entire article at http://online.wsj.com/article/SB125383160812639013.html?mod=WSJ_hpp_MIDDLTopStories

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2 responses to “Gore-Backed Car Firm Gets Large U.S. Loan

  1. I stumbled across your blog while searching Google. Thanks for the great share. I’ll be subscribing to your blog and adding it to my Google Reader.

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