Think Halts Production of Electric Cars, Begs for Money

Oops.

Think, the Norwegian company that wants to bring a two-seater, all-electric economy car to the urban masses, halted production on Monday according to Reuters and is seeking a bailout. The Norwegian government, however, has already told the company to suck a herring.

The company needs around 100 million to 200 million crowns—that’s $14.5 million to $29 million—in short term guarantees to stay afloat.

“We are in a very serious situation,” said Richard Canny, the relatively new CEO, said in a news conference, Reuters reported. “We would not have taken these actions if it was not serious. We need to intensify efforts to bring in new capital.”

Bankruptcy, something that occurred in Think’s past, is a possibility. However, the company hopes to start production next year.

The problem? Think says it needs capital and that parts suppliers are driving a tough bargain.

Maybe so, but Think has another big problem. Namely, that electric cars continue to be really, really expensive. Batteries aren’t cheap and they improve slowly. I did a cost analysis of the Think City last month. The car costs about $42,000 if you planned to own it for seven years. That’s a lot for a car that, if brought to the states, couldn’t even hit the 65 mile per hour freeway speed limit. (Technically, I don’t even know if it’s freeway legal. Think sells it for city driving.)

Petter Hummel at RohneSelmer, the dealer in Oslo that started to carry the Think City last month, told me he’s sold a few and gets a lot of requests for tests drives. But that’s also the experience Toyota had with the all-electric Rav 4 in the ‘90s. Lots of interest and only a few sold.

Electric cars are a great idea, but Think’s experience shows it’s going to be a rocky road for startups and established car makers alike.