EV Startup Think, Denied Bailout by Norwegian Gov't, Says It Likely Won't Survive

EV Startup Think, Denied Bailout by Norwegian Gov't, Says It Likely Won't Survive

The Norwegian government today denied electric-car startup Think financial aid it had requested, possibly dooming the Norwegian EV company that once belonged to Ford Motor Co.

The denial was reported by dagbladet.no and translated to English for our edification by translation-guide.com.

Oddly, the news comes only a couple of weeks after Think announced plans to double production early next year of its plug-in electric two-seater Think City and then double it again as it launches a European marketing drive.

Like many other car companies in recent years, privately-held Think said it had difficulties in obtaining working capital and that automotive suppliers offered tougher terms on parts.

"We are in a very serious situation," Chief Executive Richard Canny told a news conference this morning. He said the company would probably not survive without the government's help, and soon thereafter the government denied it.

Canny said Think needed 100 million to 200 million crowns ($14.5 million to $29 million) in the short term through guarantees, but declined to be specific on total capital needs for its planned expansion.

Think said it would temporarily stop production at its Norway plant and lay off 50 percent to 70 percent of its approximately 250 employees while sorting out its financial problems.

Think has gone bankrupt twice, most recently in 2006, but found new life with the backing of new owners and investors.

"I honestly think given what is going on in the capital markets it is going to be very difficult," Canny replied when asked whether it would make it without the government's help.

With one car model in production, the micro zero-emission Think City, the group had plans to ramp up production next year, launch the car in several European cities and set a date for its U.S entry.

Think City has been in production since late October, and the company produced between eight and 10 cars a day. It had aimed to reach 44 vehicles a day when running at full capacity sometime in 2009.

Scott Doggett:  is an AutoObserver.com Associate Editor.