Norwegian Electric Vehicle Maker Think Plans Factory in Indiana for Its City Car
By Scott Doggett November 18, 2009
Norwegian electric-car maker Think has plans to launch its vehicles in the United States and has picked a site in Indiana for its U.S. manufacturing facility, Reuters news service reported Tuesday, citing a major investor in the company.
The exact location and other details will be announced in a few weeks, said Charles Gassenheimer, chairman and chief executive of lithium-ion battery maker Ener1 Inc, which has a 31 percent stake in Think and has had financial problems of its own.
Think had said previously it was exploring the opportunity to launch its vehicles in America and was considering opening a new U.S. manufacturing plant and technical center.
Gassenheimer declined to give more details on Think's plans in the American market, but said the carmaker has applied for a U.S. government loan under a program set up to encourage production of fuel-efficient vehicles.
The loan application is in the initial stages, Gassenheimer said in an interview with Reuters.
Ener1, which also has a battery supply agreement with Think, took a stake in the automaker this year after the Norwegian company went on a fund-raising round to save itself and exit bankruptcy-court protection.
U.S.-based Ener1 gave Think another lease on life by agreeing to invest about $18 million in three tranches and convert $3 million in debt into preferred shares of the automaker.
In the fund-raising round, Think received $47 million from a number of investors including Finnish Valmet Automotive, part of engineering firm Metso, and Norwegian government-backed investment fund Investinor.
Think will now relaunch its zero-emissions Think City plug-in electric vehicle (pictured), which can travel up to 112 miles on a single charge, in Europe with initial production of about 5,000 units, Gassenheimer said.
Small and large automakers, including Toyota Motor Corp. and Ford Motor Co., are racing to launch electric vehicles and plug-in hybrid versions in the United States.
Think has been in the electric-car space since the 1990s but has changed owners and struggled for cash through the years.
It was formerly part of U.S. automaker Ford and its Think City electric car was produced after Ford took a major stake in 1999.
Ford invested $150 million in Think during its four years as an owner, according to Think's website, but decided to pull out of the electric carmaker in 2003. Norwegian investors bought Think in 2006.
Future production of the Think City car will now be done by Valmet Automotive in Finland.
Think plans to produce 5,000 electric vehicles in Europe next year with the volume doubling by 2011, Gassenheimer added.
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