This transcript is automatically generated
You remember that this get -- -- car -- not it's the fancy electric car there is that costs over a 100000 dollars.
You -- half billion dollar taxpayer backed loan and -- when consumer reports was trying to tested.
My next guest says that this her fiasco could turn out to be even worse in the scandal -- -- -- -- joining -- -- yeah.
Associate fellow at the national legal and policy center hey Paul welcome to the show.
Laughter -- -- this story is just a gift that keeps on giving for journalists I think recently we had a report.
That there was a whistle blower saying that these cars were rushed nine.
Two dealers' floors so that the company could score federal dollars -- While.
We don't know the report said that if it was it's the it originated with a Green technology website and they didn't identify who the whistle blower was of course.
Fist Durbin is saying they think it was a just a -- -- dealers who may or may not really know anything about that but.
The company that the whistle blower was -- -- coda automotive which is another electric vehicle company caught up hired.
-- -- is head of engineering previously.
So it's possible I speculate in my article from last week it could be that had an engineering.
Thomas -- to.
-- words to see would be he would be in the know are about whether things were rushed or not.
Well you know it's not having it's common knowledge now -- this pair has major problems but despite getting a ton of money from US taxpayers.
Here's what consumer reports had to say about this car once they had a chance to live with that for a little while.
They said the speedometer and energy meter display disappeared.
When driving a top of -- several other -- warning indicators appear last week.
It's expected will be revisiting the dealerships soon we've had cars in the past have had some troubles but never never anything like this yeah.
How is it possible.
That we give a company that makes a product this bad taxpayer dollars.
Well you know money talks in the the company's backed by Kleiner Perkins which is a big venture capital firm out in the Silicon Valley.
There people donated back keys point six million dollars see president Obama's birth -- his campaigns.
So there heavily backing -- here.
And and and they lobbied heavily also forced to get for the loan from the Department of Energy over I think over vote O not an -- and fifth 2010.
Spend about 200000 dollars on lobbying and sister themselves have spent aren't nearly half a million dollars.
Keep -- lobbying Colby College crony capitalism if people who give to Obama then get.
Learn they get some loans for a company that they do work -- I mean what does that -- to you.
Well well there's a pattern here -- a bit.
We we've got that example we've gotten -- -- example we've we've.
Where George -- there we've gotten -- example with Tesla automotive sort of the counterpart to fist -- which also.
Produces a very.
Expensive electric vehicle Steve Wesley a -- where for Obama or what was was leading that charge.
So we've got a pattern here and in these companies have not proven their technology is viable.
And what we're doing really -- very vehicles they're so expensive even after all the subsidies we're we're subs are being.
Toys really for the wealthy but this is -- -- you know a third fourth or fifth.
You talk about some of the earnings of 1% OK so far you apps -- serve the biggest venture capitalists and Silicon Valley and Kleiner Perkins and the folks who buy this car have so much money they don't know what to do with it.
Let's talk a little bit about the SEC.
Putting together an investigation of the private backers at this -- what's bad about.
Well we don't know the disclosures came out I think two weeks ago of advanced equities ink.
And day -- there were called by Forbes is considered.
-- keep investment sellers and and they there was a real bad article in Forbes about about.
There are two leaders.
-- top inspecting and our Dwight badger.
And those two gentlemen who founded advanced equities in who've raised most of private funding for -- her.
-- are disclosed as is required by law that they were under investigation by the SEC picture I saw it may or may not be related to -- here.
It's unbelievable and then we haven't talked a little doesn't matter that would listen there's something I wanna bring up here.
And that we have actually it's not for this about where's the money -- because this -- not really based in this country.
Here's the energy secretary answering questions from -- congressional committee.
I -- money goes to Finland and sister Carmen is not allowed to use any of that money in Finland.
As it said that the the can we give the loans for for jobs in America and we're very clear about that.
So fiscal karma is not using any US taxpayer dollars involved I can get back to you on the details of that -- I know the overall scope of the loan is for -- actually had states.
Get back -- on the -- -- of that that doesn't sound good to me -- -- taxpayer.
Asks secretary -- record is sketchy at best he's allowing these sketchy characters to or get.
Funding for their projects.
We can I don't think we can really trust that the department of -- even tracking where this money's going sister has says they have about 600 employees.
Between California in the engineering side of things.
And in this plant that they were gonna -- build in in our Delaware -- refurbish GM plant which they had to shut down president DO we cut up cut off their loan.
We don't know we don't know where that money's going and I would suggest -- you chairman ice.
On the house government reform committee to -- really demand the documents there he's been going after the Solyndra loans and there are so many other loans here with the vehicles live Nissan -- refurbishing a plant in.
In Tennessee one point nine billion dollar loan I really don't think this for the Nissan leaf.
I'll see how that's gonna get off the ground if GM just shut down for five weeks to produce the leaf.
-- -- -- -- -- -- But -- need to operable power house Nissan and get the leaf off -- her.
And allow I'm -- -- and that's a very good point.
And this story is goes on and I -- paperwork CBO just said you know we tried on at this we couldn't because that bid documents and details are -- mess.
They -- they apparently don't have everything together over at the DOA Paul thanks for coming -- have you back yet as we.
Continue to follow this unbelievable story thank you so much.