Two prominent Senate Republicans are questioning the federal loan to Fisker Automotive which is negotiating with the Obama administration for funds to build its new facility at the old GM plant in Delaware.
The Wilmington News Journal reports that Senators Chuck Grassley of Iowa and John Thune of South Dakota fired off a letter to Energy Secretary Stephen Chu demanding that he defend the now frozen loan to the automaker.
Among the questions, the Senators asked why Fisker was allowed to build its first car the $100-thousand Karma sedan in Finland and what technical expertise the department used to approve the Fisker loan.
Fisker has raised more than $1 billion in private money and is backed by $18-million in state funds.
The Department of Energy froze the loan after Fisker missed sales and production goals of the Karma required for the federal loan.
Fisker has earned more than $100 million from sales of the Karma.
The News Journal says there was no immediate comment from the car company.
