Rep. Darrell Issa sent the Energy Department a letter supporting the company. Issa-backed car company folds

A Southern California auto company that was set to receive an Energy Department loan supported by House Oversight and Government Reform Chairman Darrell Issa is closing its doors.

Aptera Motors announced Friday that it will cease operations despite recently receiving a conditional commitment letter for a $150 million loan from the Energy Department.


The company said it had been trying to clear “the last remaining hurdle” — raising money to match the DOE loan — but was having trouble lining up private investors.

“After years of focused effort to bring our products to the market, Aptera Motors is closing its doors, effective today,” according to a statement from the company's President and CEO Paul Wilbur. “This is a difficult time for everyone connected with our company because we have never been closer to realizing our vision. Unfortunately, though, we are out of resources.”

The company had been in discussions with the Energy Department for two years in trying to receive a loan under the department’s Advanced Technology Vehicles Manufacturing program.

Issa sent Energy Secretary Steven Chu a letter in January 2010 supporting the company's request.

“They were looking for an answer,” Issa told POLITICO in October. “We simply encouraged it. It’s an interesting project for the commuter vehicle … and we simply wanted an answer.”

Issa said the loan would “greatly assist a leading developer of electric vehicles in my district.”

The California Republican has been coordinating with House Energy and Commerce Republicans in investigating DOE’s $535 million loan guarantee to the solar manufacturer Solyndra. He is also looking into billions of dollars in loan guarantees that DOE awarded to First Solar Inc., SunPower Corp. and ProLogis Inc. earlier this year, just hours before funds authorized under the 2009 economic stimulus law were set to expire.

In a statement late Friday, Issa again criticized the Solyndra loan guarantee while expressing sorrow at Aptera's demise.

"With officials playing the role of venture capitalist and picking favorites like Solyndra, success for companies like Aptera that have to compete against others with government sponsorship can be especially difficult,” Issa said.

"Nearly three years after Aptera sought assistance from the Department of Energy — and my request that their application receive full consideration — I’m sure it must be frustrating for Aptera and their employees that the clock ran out on their proposal before they received a yes or no answer,” he added. “Aptera never received the taxpayer backing they sought, and perhaps the only good news in this bankruptcy is that it occurred before federal funds were put at risk.”

Wilbur said the loan for Aptera would have gone to developing and commercializing a five-passenger midsized sedan — similar to a Toyota Camry — that would be base-priced at less than $30,000 and deliver more than 190 miles per gallon equivalent.

“We remain confident, even as this chapter closes, that Aptera has contributed ... new technologies to build a future for more efficient driving,” Wilbur’s statement said.

This article first appeared on POLITICO Pro at 6:40 p.m. on December 2, 2011.