I was always under the presumption that corporate bail outs were for companies/corporations that if they went out of business (GM in Detroit) that they could get a corporate bail out. That’s why mom and pop shops don’t “get bailed out”, but shut down because of bankruptcy.
In: Economics
Fisker is not important to the economy or any political group anywhere. They simply just subcontracted out their manufacturing. There will be no bailout.
GM/Ford got bailouts because they employed hundreds of thousands of people, and many more downstream, and were considered strategic to the United States economy.
Fisker isn’t being bailed out. They’ve filed for bankruptcy and effectively abandoned operations. They’re certainly not building any more cars right now.
GMs bailout was the fed buying shares directly from GM. The Fed made a lot of money on those shares when they sold them. Fisker is not getting bailed out. They are filing for bankruptcy.
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I think you may be mistaking the first company named Fisker that went bankrupt with this new one. The old company made the Karma. It dissolved and a new company named Fisker was created by the same guy. The new company made the Ocean. Both were privately funded and neither were bailed out in order to keep operating. The first was liquidated and this new one is also being liquidated. EV’s are popular, Fisker worked at Tesla so he was able to convince investors to fund a second company even though his first attempt failed.
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