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More Embarrassment for Fisker

In some cases, you could say things will get worse before they get better. For Fisker, however, that doesn't appear to be true.

You’re going to absolutely love this bit in the latest saga of Fisker’s nasty downfall. Aside from its founder and namesake leaving the company, not one car being built since last July and the mass pink slip recently given to 75 percent of its workforce, Fisker’s troubles continue to add up while potential investors move on in light of the automaker’s outstanding US government loans. And now it gets worse: Fisker was apparently still entitled to its US Department of Energy loan despite the fact that it violated the terms on several occasions.

According to Automotive News and Jalopnik, the Energy Department knew as far back as December 2010 that Fisker wasn’t meeting the specific milestones it agreed to in order to continue receiving taxpayer money. Even when Fisker began to default on those loans, the government still allowed the hybrid plug-in automaker to withdraw some $193 million from the $529 million line of credit it was given back in 2009. The USDE finally cut off Fisker’s access to the loan in June 2011. More information will come to light this week after a Congressional subcommittee hearing.

Oh, and one last bit of Fisker "hitting the crapper" news: Bloomberg reports that the automaker "spent more than six times as much US taxpayer and investor money to produce each Karma it sold than it received from customers." Fisker spent $660,000 for a car that had a sticker price of $103,000, meaning that it actually lost half a million dollars (of someone else's money) on each one it sold.

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