The decision ignited a firestorm of controversy as critics blasted Fisker and the Obama Administration for using federal money to fund auto manufacturing in Europe. For a while, the Fisker DOE loan became a central point of the U.S. race for President as Republican nominee Mitt Romney blasted President Obama for lending federal money to a company that was struggling and building cars in Finland.
(Read More: Behind the Wheel, Putting the Tesla to the Test)
In 2011, the DOE suspended the Fisker Automotive line of credit after loaning the company $190 million of the $529 million the company was authorized to receive.
Meanwhile, as Fisker tried to get its finances in order, its launch model seemed to constantly be in the news for having problems. In 2011, the EPA rated the high priced EV as delivering the equivalent of 52 MPG, and an all-electric range of just 32 miles.
The results were well below what Fisker had promised and what auto enthusiasts expected. Early last year, the $107,000 Karma model Consumer Reports bought and was test driving stalled during its initial drive and had to be towed to a service center. Pictures of the Karma being loaded onto a flatbed tow truck became an embarrassing symbol of Karma problems.
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Finally, during Hurricane Sandy last year, Fisker lost 300 new Karma models that were damaged in the storm. An estimated $30 Million dollars in vehicles lost at a time when Fisker was struggling to get models into showrooms and into the hands of potential buyers.
—By CNBC's Phil LeBeau; Follow him on Twitter @LeBeauCarNews
Questions? Comments? BehindTheWheel@cnbc.com