Report: Electric-car maker Think hits brakes

Think Global, which makes the Think City electric car, is having difficulty securing money to continue operating and is seeking state aid from the Norwegian government, according to a report.

Reuters reported on Monday that Think CEO Richard Canny held a news conference where he said that the company needs up to $29 million in loan guarantees.

The Think City from Think Global.

(Credit: Martin LaMonica/CNET Networks)

It plans to reduce staff by at least 50 percent and stop production with an eye toward restarting in the first quarter of next year, the report said.

The company said the global financial crisis has made it difficult to get working capital and parts suppliers are demanding more difficult financial terms.

In a statement, the company said it had "limited possibilities for funding working capital through bank credits without extra guarantees in today's financial markets."

Representatives from the Norwegian government told Reuters on Tuesday said that it would not directly intervene to prop up the company.

Think, which used to be owned by Ford, is one of the more high-profile electric-car makers.

It is already manufacturing the Think City for sale in Europe. It had planned on rolling out a new version in Scandinavia early next year that would have a top speed of 65 miles per hour and a range of about 100 miles. Battery makers Ener1 and A123 Systems had been contracted to supply lithium-ion batteries for the city cars.

Think has run into financial problems before, having gone bankrupt twice. But it secured new investors in 2006.

[matthewbulat]

The Think City is a worthwhile car for export around the world. It is 1 or 2 years ahead of most of the competition. Electricity can come from many sources unlike oil. In terms of running cost the Think City uses works out about 1/10 the cost compared to similar sized petrol vehicle. Having a viable car industry in a country is worth more the $29 M. Electric cars can also help countries balance a payment issues. I have created a calculator that compares the Think City with a petrol car. The link is http://www.matthewb.id.au/media/Electric_Vehicle_Calculator.html See how much money you can save using an electric car.

[LinuxRules]

I hope they survive, but the real problem here is the US govt made a category for the 25 mph 'city car', really a street able golf cart, that only a few states even supports. That a lot of awesome electric car companies made cars for, but there is a very small market for them, because of the state laws do not allow them. In reality, we need electric 'city cars' that can travel at 45 mph, because there are more roads at that speed then 25 mph, even in the average city. The govt may have needed the 25 mph city car category, but they stop short too soon and helped hold back the electric car to real take hold of the street.

[hawkeyeaz1]

"Think, which used to be owned by Ford, is one of the more high-profile electric-car makers."

So tell me again why Ford needs this bailout money to convert to making electric cars?

[Shaun822]

Apparently because when times were good they decided they didn't need or want an electric car. Instead they just chose to continue to build bigger and less efficient vehicles along with reduced quality across the entire spectrum of passenger cars.

[Manhattan2]

The Solar Transfer car is the solution. More info coming Jan 20th.