Think City, the Electric Car that Could Change Everything
April 03, 2008

By Nick Kurczewski

MONACO -- Jan-Olaf Willums, CEO of Think Global and the driving force behind the company’s new electric car, looked like his own batteries were nearly flat by the time AutoObserver sat down to chat with him at the EVER Monaco ecological car show. Held March 27-30, EVER Monaco is an annual exhibition of alternatively powered vehicles and energy systems. After a full day of interviews and roundtable discussions, Willums’ eyes looked weary, his tie was undone, and he bravely tried to stifle a yawn as we began the interview.

Five minutes into our conversation, the fog had lifted and Willums had hit his stride. His eyes were sharp, and the professorial-looking automotive CEO made it clear Think will not be content to simply reignite interest in electric vehicles. Think wants to revolutionize how customers buy a car, how they consume energy and even how they interact with their vehicle.

The Think City’s long road to realization
Behind Willums sat Think’s latest creation, and the car the Norwegian company hopes will take it to the U.S. market by 2009. Introduced a month earlier during the Geneva Motor Show, the Think City is short and boxy, with doe-eyed headlights and a nifty glass hatchback. The City has a top speed of around 65 miles per hour, a range of more than 120 miles in city driving, and a full complement of safety features such as ABS and airbags. The cabin is comfortable, well-built and handsome.

Think promises that up to 95 percent of the City is recyclable. Even the body panels are color-impregnated plastic. This makes them tough and dent resistant, and also eliminates the toxins that are released during the painting process. Of course, the secret to the potential success of the Think City will not rest solely upon cute looks and recyclability — though they certainly won’t hurt its chances.

Think Global can trace its roots back almost two decades. Founded in 1991, the upstart electric car company was originally known as Pivco. Based in Oslo, Norway, the company’s early electric vehicles were unrefined and fairly ugly. Yet they were updated and improved to the point that they caught the eye of none other than Ford Motor Company. Seeking to counter General Motors' highly publicized EV1 electric car, Ford purchased Pivco in 1999.

Ford pumped tens of millions of dollars into what it curiously renamed the “Th!nk city” car. The bizarre spelling still crops up today, though most company literature now sticks with the simpler (and spell-check friendly) “Think.” No matter the name, Ford’s purchase of Think was disastrously timed. California’s electric-vehicle mandate was first watered down to include hybrid vehicles, then quashed completely in 2003 under continuous threat of legal action by major auto manufacturers such as DaimlerChrysler and General Motors.

Escalating financial woes — not to mention the PR nightmare brought on by the Ford Explorer and Firestone tires rollover debacle — meant Ford could not justify investing in a left-field project like a Norwegian electric-car manufacturer. Ford sold Think in 2003, and for several years the company remained in a wilderness of nearly completed projects and nonexistent business plans.

Recharging the Think brand
Willums maintained Ford’s sale of Think was not due to the electric-car company’s lack of potential. “There was always a very dedicated following amongst Ford for Think,” he said. He emphasized Think still has a “good relationship” with the American car company and many parts on the Think City, such as the steering wheel, are still sourced from Ford. For all you fans of automotive trivia: Think’s taillights are identical to those once used in the Lamborghini Diablo supercar.

Willums bought Think for a paltry $15 million two years ago. “I called two colleagues who had started a very successful multibillion-dollar solar company,” he said of the initial investment. Development has moved quickly because, as Willums readily admitted, much of the groundwork had already been done. “We had a 90 percent finished car and a good factory."

Early last year additional funds totaling approximately $93 million were raised for development. Investors include Dean Kamen, inventor of the Segway scooter. Google co-founders, Larry Page and Sergey Brin, are also big fans and invited Think to a brainstorming session in July.

Even German sports car specialist Porsche has played a role in Think’s rejuvenation. Porsche engineers were hired to visit Think’s factory in Aurskog, Norway, and offer suggestions for improvement. Willums said Porsche helped Think streamline production and increase the factory’s annual capacity from 7,000 to 10,000 units. But these hard numbers are only part of Think’s future sales strategy.

The company plans to sell its cars almost entirely via the Internet. Customers will buy the car, but lease the batteries in a system Think refers to as its “Mobility Pack.” Willums said the mobility-pack fee would be $100 to $200 per month (depending on the market) and would include the batteries, car insurance, carbon offsets and even Web service. An owner could text message his/her car and receive messages back with service updates and diagnostics. The batteries would be replaced and recycled when the vehicle detects they’ve lost their optimum efficiency levels.

On Sale in Europe, and On Its Way to the U.S.
The new Think City is already on sale in Norway. Sales in Sweden and Denmark will start “very soon,” said Willums. Orders are currently being taken in the UK, with sales expected to begin there in March 2009.

Willums said changes to government rules and regulations concerning electric vehicles have pushed some markets to the forefront. For example, France recently announced electric-vehicle tax rebates of around €5,000 (about $7,900). Willums said he now hopes for sales to begin in France by the end of this year.

Willums said the Think is sticking to its ambitious plan to sell the Think City in the U.S. by 2009. One obvious sticking point is the car’s high price. In the UK the Think will carry a sticker price of nearly $30,000. “We need to get the price down for the U.S.,” he said matter-of-factly. He defended the City’s price by saying it’s a “real car” manufactured to the same safety standards of any other vehicle. The mobility-pack system should also help keep costs in check.

As for possible low-cost competition from a super-cheap city-car such as the Tata Nano, Willums said he does not see the Indian-built hatchback as posing any real threat. “There is no way that the current Nano will ever come to Europe or America. It would require so much re-engineering.” But Willums didn't dismiss the Nano entirely. “It’s still a great car for India and other developing markets,” he said.

Willums said he believes a target price range for the U.S. would be $18,000 to $20,000. To make this possible, he said any Think City cars sold in America will also have to be built there. High manufacturing costs brought about by building the car in Norway — along with the weakening value of the dollar — make localized production a necessity for profitability. A search is on for a manufacturing site in the U.S.

Willums promised additional news relating to the American market will be coming very soon.•

Nick Kurczewski is a Paris-based correspondent working for AutoObserver.

Photo 1 — The Think City electric car, capable of around 65 mph, with a range of 120 miles in city driving.
Photo 2  — The Think City has been built to meet global safety requirements and has a level of refinement far beyond those of most electric cars, as evidenced by its well-thought-out interior.

Posted by Michelle Krebs at 4:06 AM under Business , Companies , Ford , Technology | Comments (13) | digg this | Seed Newsvine