THINK - The once was electric car
Had to take a blog holiday yesterday as we kept busy packing boxes out in the Garage.
I ran across the story of a Norwegian car company called THINK. THINK was one of the front runners in getting a full blown electric automobile to market. Theirs is a story of market forces. Specifically what the credit crisis and declining oil prices have done to bring about this car company’s death.
Riding high as recently as six months ago, THINK had sold 350 of their city model car that had zero carbon dioxide emissions and sold for about $30K in Norway.
As they gained a small bit of a grip in their host country the financial crisis hit and they were unable to raise the $60-$100mn they need to finance grow. Compare those figures to bailout money. In addition, crude oil prices fell from $145 a barrel in July and settled at about $46 last week in New York.
I’m not in any way suggesting that this company should’ve been bailed or saved but simply pointing out what real market forces are doing to small entrepreneurial ventures designed to compete with the big guys. There may be a bit of a Tucker Torpedo story hidden here. Interestingly enough, Ford at one time had a large position in this company and abandoned it in 2003.
As of now THINK has sought court protection, sent all 300 employees home on temporary leave, idled its factory and suspended its contracts with suppliers. Not too big to fail.
And okay, some shameless commerce, only 3 days left on our Busted Knuckle Garage HALF-PRICE shirt and cap sale.
Keep it between the ditches,
Owner/The Busted Knuckle Garage