Norwegian Electric Car Maker THINK in “urgent financial distress”
by Michael Graham Richard, Ottawa, Canada 
on 12.16.08
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.
Via Reuters:
"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.
Photos: Think/Knut Bry
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Sadly in business the bottom line is, well the bottom line.
IMHO, this is one more example of a lesson learned over and over that they way to a successful EV car and company is to convert existing "gliders" and let somebody else do the work that isn't necessary to produce an EV. Hopefully that method will work for Tesla.
Wow thats interesting, car companies that are eco friendly are in the same boat as non-eco friendly car companies. I can't believe Norway made a good financial decision for its country but we could not.
This is about world human survival. We need to get off the gas needle, and business logic be damned. EVERY electric car company is about to go under, not because of business fundamentals, but because trading cowboys destroyed our banking system. We cannot afford to let the hand of the market slaughter our future. Global warming will cost hundreds of trillions if it goes into overdrive. We are going to die of MBA ideology.
I wonder what would happen if instead ofpulling back from the market, they were to try to pull ahead? They have the product, now they need to open their franchise outlets in America and start selling the cars. Don't businesses typically pay a franchise fee to open an outlet? Include the battery as part of the cost of the vehicle and not leased on the side, and I'm ready to buy one.
Where did the trillions of dollars go that countries around the world gave to banks to solve the "credit crisis"?
I think it's wrong for an emerging company like Think to pay for the sins of banks and American automakers.
If there was ever a time to back a green company one would think that this is the time and Think IS THE company.
This would be the perfect time for Ford to repurchase the company. These cars would be a great marketing tool in the states.