Archive for October 20th, 2011

According to ABCNews:

“DOE cannot be assured that the projects are on track to deliver the vehicles as agreed,” said the GAO report examining the department’s ATVM program. “It also means that U.S. taxpayers do not know whether they are getting what they paid for through the loans.”…

Between them, Fisker, at $529 million, and Tesla, at $465 million, have secured nearly $1 billion to jump-start production of their cars. Combined, the companies have already drawn down more than $300 million, Federal Financing Bank records show.

“Jump start”? But, according to the News Journal:

Fisker Automotive will not begin high-volume production of its second line of hybrids in Delaware until mid-2013,company executives said Wednesday.

This delays production for a year. I don’t know how many more jump starts I can stand… And rumors within the UAW state that there has been fundamentally no hiring.

So, 1/3 of the money gone, a minimum 1 year delay, and no jobs. Our “businessman” Governor has made another great investment. Makes one think back longly to the Minner-Carney days. At least we expected them to be incompetent. But what does this have to do with Bloom Energy?

According to PR Newswire, Kleiner Perkins was a 2nd round investor in Fisker Automotive to the tune of over $100 million. Around the time that the Federal government and Delaware’s State government ponied up over $500 million in loans and cash incentives, Kleiner Perkins put another investment in the 3rd round in financing.

Kleiner Perkins is also a major investor in Bloom Energy. The primary partner in Kleiner Perkins is John Doerr, who donated $1,200 to Governor Markell’s 2006 Treasurer’s re-election. I wonder how many State Treasurer races the most powerful venture capitalist in the Country, who is located in California, donated to???

In Jack Markell’s Blueprint for Change campaign book in 2008, he wrote:

The state should not be in the business of betting on the next great industry…. In no case should [business] investing decisions be made by state employees, elected officials, or anybody other than experienced investors with a strong track record of investing

I guess he wrote that before getting clearance from Kleiner Perkins — earning money the old fashion way — Crony Capitalism.


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