Norwegian Electric Car Maker THINK in "urgent financial distress"
Think in Big Trouble
The Norwegian government has announced that it won't guarantee between 100 million to 200 million Norwegian crowns ($14.5 and $29 million) in short-term loans to rescue the electric car maker Think Global. The company has halted production of its City EV and laid off half its workforce. Think was rescued from bankruptcy in 2006, but will it be rescued again this time? Read on for more details.
"There are many companies that are in a demanding financial situation because of the financial crisis," Deputy Minister of Trade and Industry Rikke Lind told Reuters.
"The government cannot go in on the ownership side or provide loans to specific companies in today's situation," she said.
Think could still ask for help from the government, but it's going to have to get in line like everybody else and wait. We can't know if that help will be approved or not.
This could seriously compromise the sale of the Think City in North-America, which was planned for this year, with pricing at under $25,000, "less than the cost of a Prius." Speaking of the Prius, Toyota has put on hold the construction of its Mississippi Prius plant.
Via Reuters, Eart2Tech
Photos: Think/Knut Bry
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