EV-Maker Think Says U.S. Sales, Manufacturing Could Start Next Year
By John O'Dell March 12, 2009
Electric car builder Think
unwrapped its plans for the U.S. today and, as we suspected
, said that an ambitious goal of building a manufacturing plant here and churning out lots of its cars for U.S. buyers to enjoy will be heavily dependent on the federal government's willingness to give the struggling company a loan.
Norway-based Think Global's chief executive, Richard Canny, said the company has received an additional equity investment from the Kleiner Perkins Caufield & Byers venture capital firm after filing for Norway's version of Chapter 11 reorganization late last year.
But to fund a U.S. manufacturing operation apparently will take more than the venture community is willing, or able, to cough up, so Think will file an application at the end of the month for a loan from the Department of Energy under the Advanced Technology Vehicles Manufacturing Loan program.
While the scope of U.S. operations is dependent on receipt of a federal loan, a Think spokesman told Green Car Advisor that the company believes it still well be able to finance a U.S. operation and sell cars here if the loan application is denied.
The company said during its press conference at the Michigan Information Technology Center that Think executives are talking with representatives of eight states about incentives they'll offer to win an electric vehicle manufacturing plant.
The company said it expects to have winnowed the field down to two finalists by the end of the month and then it is just a matter of waiting for the feds to decide on the loan (a process than could take months if the ongoing processing of loan applications filed last year by other automakers, ranging from General Motors Corp. to Tesla Motors, is any indication).
If all goes well - and we hope it does! - Think by sometime next year could be building a limited run of its plastic-bodied City cars for use in demonstration and pilot projects in private and government fleets.
Spokesman Brendan Prebo said Think is in the process of arranging private financing but cannot discuss its progress beyond the announcement that Kleiner Perkins has made an unspecified investment to become a Think Global shareholder.
However, representatives of two other investment funds, Novus Energy Partners and Rockport Capital Partners, spoke at today's event. We're not sure if much can be read into that, though, as Rockport is a previous Think investor and Novus principal James Lyons serves as chief technology officer for Think North America.
Think said that if everything comes together as hoped, it will begin U.S. production with 2,500 cars next year, 16,000 a year later and up to 60,000 a year at peak capacity. A full-scale manufacturing plant would employ up to 900 people, the company said.
The Think City is a rechargeable battery-electric car capable of a top speed of 70 miles an hour and a cruising range of up to 112 miles. Much of the City's development was done while Ford motor Co. owned Think from1999 to 2003.
The company is working with two U.S. battery makers, A123 Systems and Ener1, whose parent - Ener1 Group - is a Think investor. Both are under contract with Think to provide lithium-ion batteries for the City.
Canny told reporters he believed that Think could sell the City for under $20,000 after federal incentives are deducted. There also would be a monthly battery leasing charge of $80-$90, he said.
John O'Dell, Senior Editor
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