Th!nk details U.S. manufacturing, sales plans: hopes to sell City EV for under $20,000
by Sebastian Blanco on Mar 12th 2009 at 11:55AM 
Click above for a gallery of the Th!nk City in Detroit
This morning at the Michigan Information Technology Center in Ann Arbor, Th!nk finally gave the media the details of it's planned expansion into the U.S. market. The short version: by 2010, Th!nk North America hopes to be building electric vehicles in the U.S. These City models (seen above) will be able to go around 70 mph, pass all required safety standards and be targeted at fleet customers, initially. Th!nk NA will be submitting a loan application to the Department of Energy on March 31, and its U.S. plans are dependent on getting this money. By that date, Th!nk hopes to narrow its discussions about actually building a production facility down to one or two states (this week, Th!nk is talking with representatives from eight states) and will also know by then exactly how much money they will ask for to build EVs in the U.S. As of today, Th!nk isn't giving out that number, but thay are saying they could employ up to 900 people and build up to 60,000 electric vehicles a year in the U.S. Price to buy one of these cars? Well, Th!nk officials were hesitant to put a firm number out, but Th!nk CEO Richard Canny said that the price to consumers, after government incentives, would probably be under $20,000, but you'll need to figure in an $80-90 per month fee to lease the battery.
We'll have many more details later this afternoon, including the highlights from Th!nk's slide presentation. For now, you can click through it yourself in the gallery after the jump.
Gallery: Think City in Detroit
[Source: Th!nk]
Gallery: Think's U.S. plans, March 2009
PRESS RELEASE:
Think Announces U.S. Factory Plans
Ann Arbor, Mich., USA, March 12, 2009
Think meeting with eight states to host Think EV plant.
Norway's pioneering electric car maker, Think, plans to open a new manufacturing plant and technical center in the United States. The company is currently in discussions with eight states, including Michigan, hoping to host the facility, which will initially employ about 300 workers with a starting capacity of 16,000 cars per year. The technical center will provide jobs for another 70 engineers and electric drive specialists. Plans ultimately call for up to 900 employees and a capacity of 60,000 electric vehicles per year.
"The U.S. is quickly overtaking Europe as an attractive market for EVs and is an ideal location to engineer and build EVs," said Think CEO Richard Canny. "We see ourselves playing a small but potentially growing role in re-inventing the U.S. auto industry by bringing back new manufacturing jobs to the U.S. to replace internal combustion engine vehicles that are expensive to operate and maintain with clean, efficient electric vehicles."
The plant will build the innovative THI!NK city, a sophisticated, high-tech compact electric vehicle recently nominated for England's prestigious Britt Design Award. The all-electric car can travel up to 112 miles on a single charge. The car is designed, engineered and produced to have the lowest possible carbon footprint with recyclable plastic body panels and a fully recyclable interior. U.S. production is expected to start in 2010, with the first-year volume of 2,500 units being available to pilot and demonstration fleet projects.
Canny and other officials from the company's subsidiary, Think North America, are in Ann Arbor this week meeting with representatives from the state of Michigan and seven other states to discuss options to bring electric vehicle manufacturing jobs to the U.S. The program includes a ride-and-drive event with the production level version of the TH!NK city electric car presently on sale in Europe.
Think North America also plans to apply for low-interest loans from the U.S. Department of Energy's Advanced Technology Vehicle Manufacturing program, which was created in 2007 to help develop U.S. production capabilities for the highly fuel-efficient vehicles needed to meet long-range energy security and environmental challenges.
Think is also collaborating closely with battery makers Ener1, Inc. and A123, which are already under contract to supply compact, high-powered lithium-ion power systems for the TH!NK city. The two companies are part of a growing U.S. supply chain serving the electric vehicle and plug-in hybrid car markets.
"We're seeing a whole new system of suppliers and producers taking shape in this country to create a new high-tech manufacturing base," said Ener1 CEO Charles Gassenheimer. "Having an important partner like Think here will help us continue to push the technology and develop this new industry even more quickly. It's also going to give us an edge against our overseas competitors."
Canny also welcomed Kleiner Perkins as a shareholder in Think Global. Kleiner Perkins partner, Ray Lane, expressed his support for Think's increased emphasis on the North American market.
"Electric vehicles like the TH!NK city represent an opportunity for the U.S. to become more energy independent," said Rockport Capital Partners Co-Managing Partner Wilber James. "Based on the production rate of 30,000 electric vehicles per year, the TH!NK city fleet would replace 900 million gallons of oil over ten years."
"The auto industry is poised for a revolutionary transformation enabled by fundamental advances in power electronics and battery technologies," said Dr. Jim Lyons, CTO of Think NA and partner at Novus Energy. "EVs are inherently simpler and cleaner as exemplified by the TH!NK city – a next generation solution to urban mobility."
Battery powered electric vehicles provide a number of advantages for the administration seeking to increase energy efficiency and security. Electric powertrains are about three times more efficient than gasoline counterparts.
Battery electric vehicles are also cheaper to maintain and operating costs for charging range from $2 - $3 for 100 miles at average U.S. electricity rates. The TH!NK city vehicle draws on the company's 17 years of experience in EV development and production and more than $100 million invested by Ford Motor Company during the four years the company held a majority stake in Think.
Think will also continue production of the TH!NK city in Europe. Think started producing the new generation TH!NK city at its Norwegian assembly plant in limited volumes last year.
About Think
Think designs, develops, manufactures and markets environmentally friendly vehicles and technologies. Think has been developing and producing urban mobility solutions since the early 1990's. In 2008, the company launched the TH!NK city, the latest generation electric vehicle designed and engineered by Think. Think vehicles are designed to be smart, flexible and continuously updated to deliver state-of-the-art urban mobility. Currently, the company operates production facilities in Aurskog, Norway with a plant capacity of 5,000 units per shift (max. 16,000 units/year).
About Novus Energy Partners
Novus Energy Partners is a clean energy fund established in 2008, with offices in Alexandria, Va. and Oslo, Norway. Novus focuses primarily on investments in wind, solar and electric transport technologies. Its partners include founders of REC, GE Wind Energy, and PowerSicel.
Some of the Th!nk City live photos in the gallery are copyright ©2009 Sebastian Blanco / Weblogs, Inc.
Reader Comments (Page 1 of 2)
Phil Kulak 12:53PM (3/12/2009)
How do you manage to build an electric car that costs $27,000 _without_ the battery? Take an econo-box, yank out the engine, transmission, add a much smaller and cheaper electric motor... and increase the price by 10 grand? I'll see what the Volt and iMiev can do for me.
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Darrell 1:54PM (3/19/2009)
It's simple just another greed scheme, and to make people rich of the back of normal working people
Anthony 1:25PM (3/12/2009)
Th!nk was here in the US for a while (Fisherman's Wharf area rental car company in SF had a few you could rent).
W/ hybrid prices dropping off a cliff because gas is in the $2,00 zone again, I just don't see the viability of these.
I really hope the government doesn't spend all it's time funding these startups w/ limited market appeal.
I believe people, in general, want electric cars that are really *cars*, not tiny 2 seaters that can't go on the highway w/o creating a great amount of ire from neighboring drivers.
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Herm 1:42PM (3/12/2009)
it really would have to be built in china to bring the cost down.. sell the car at a minimum price and make your money leasing the batteries :)
They would sell a LOT of cars that way.. lets say $6000 for the basic car. It can very simple and low cost.. no power brakes. steering or windows.. and of course no engine, radiator, transmission, exhaust system and gas tank.. about the only "premium" feature in this car would be the mandatory air bags. The perfect second car for a family, no trips to the gas station and almost no maintenance.. 100 mile range and 75mp is more than enough.
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Herkimer 3:57PM (3/12/2009)
@ Herm
Built in China? Really?
Can you please try harder to internalize the economic ruin around you, and understand that the more that is produced domestically, the better off we'll all be. (Even if it costs a little more in the short run.)
mike 2:05PM (3/12/2009)
I think this is one of the more clever and usable electric designs I've seen.
Also seems very market ready.
But that price.....
It would be nice to not be burning gas in my car.
But for most people this car would work for.. they could buy lots of gas powered vehicles well under $20G and spend not much more (and quite probably less) than $80 to $90/month to fuel that gas car.
That does not even take into account the electrical cost of charging this car.
I just don't really see the numbers working out.
But then again, a lot of people are buying smart cars in the US and with the engine they brought with it, I don't see the numbers there either.
So, who knows.
- m
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ryan 11:41PM (3/12/2009)
I am with you. My daily commute is about 60 miles to and from work. That brings my per month fuel costs to about $55. I own my car. It is a 1998 Jetta TDI that has a TON of life left in it.
I got excited when I first saw the headline, but as Mike pointed out, the numbers just DON'T work out. If the $20k included the battery, and it was warrantied for about 100k miles (nothing that I would expect any electric vehicle maker to do in the near future) then I would consider the Think City. My life policy prevents me from leasing anything or ever taking a loan out.
Sorry Think, but you are going to have to think a bit harder if you want my hard-earned cash.
Tom R Simenstad, 2000 Th!nk driver 12:22AM (3/15/2009)
You are right, Mike,
Th!nk IS market ready. US and European crash tests have bee passed! No other manufacturer will be market ready in the next two years. It takes that long.
Have you forgotten 1973? The fuel crisis? It has happened before and it will happen again. Be prepared, buy an EV now.
Rick 2:15PM (3/12/2009)
I don't see many sales for this tiny box anywhere near the $20k price point. Are they serious? That's a $5000 car with expensive tech, but people aren't going to pay that type of money for a toy car.
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polo 7:13PM (3/12/2009)
The FourTwo says your wrong. Add in $7,500 credit. How does about $12K sound?
Herkimer 3:18PM (3/12/2009)
Th!nk + $1k per year battery = ~$30,000 over ten years.
Volt + no leased battery = ~$32,500 over ten years.
Oh yes, one other *little* thing --> the Volt looks and feels like a car I'd actually WANT to drive. (not an ugly little 2-door matchbox like this)
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posterboy 3:17PM (3/12/2009)
I guess I'm too dense to understand, but how the heck would this cost 20K AFTER the $7,500 government incentive and STILL require the lease of the battery? What exactly is THINK going to be putting in these cars that costs so dang much? According to earlier ABG reports, BYD is currently producing a plug in hybrid in China for about the US equivilent of 20K, (would that be 12.5K after the incentive?) The Prius and the Insight include both an IC engine and a battery pack, and both are 20Kish without any incenitve. How is a 2 seat car without an IC engine and apparently without a battery going to cost so much more? Must be some serious Norwegian reindeer hide leather seats or something...
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jpm 3:48PM (3/12/2009)
Th!nk needs a reality check: NOBODY WANTS TO LEASE THE DAMN BATTERIES. Please take that idea that you got from Project *** Place and shove it up your ***. If the batteries aren't capable of lasting a car-lifetime, then don't sell it. The EV RAV4 was and is capable of lasting a car's lifetime. And Li batts are supposedly better than NiMH.
It looks like I'll have to convert my own EV. Nobody seems to want to actually sell one w/out leaving their hooks in you.
[NOTE: this comment has been edited. Keep it clean, folks.]
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Chris M 5:29PM (3/12/2009)
There are people who lease cars, so leasing the battery pack isn't really out of line, although it begs the question "why lease the batteries only, and not lease the entire car?" Maybe because tax credits and rebates are structured to purchase, not lease, the vehicle, leasing the batteries doesn't interfere with the credits but does reduce initial purchase cost.
The main reason for leasing is to reduce "up front" costs, and allow consumers the option of dropping the lease for a newer vehicle when the lease expires. Of course, over the long run it is more expensive, but so is paying off an auto loan.
I really think leasing should be optional for those who want it, not standard. Some people would rather arrange their own financing and pay cash up front.
Mark 4:11PM (3/12/2009)
If I have to lease, I'm not interested. There is NO guarantee that they won't stop leasing the batteries. What happens if they suddenly stop leasing the batteries to people? you have a 20K, overly large paperweight.
Either SELL or go home.
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polo 5:56PM (3/12/2009)
"W/ hybrid prices dropping off a cliff because gas is in the $2,00 zone again, I just don't see the viability of these."
I guess you mean hybrid "sales" not prices. In case you didn't notice ALL autosales are down drastically due to the credit crunch, lack of consumer confidence, and a global recession. However, hybrid sales still down LESS than other auto's.
When the financial markets are more stable and the economy picks up, so will gas prices. To suggest these aren't "viable" is laughable (and the kind of thinking that got the US automakers in trouble). Now is the perfect time to roll them out, get the bugs out, and then when the economy ramps up, ramp up production and maybe even a newer model right along with it.
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ryan 11:49PM (3/12/2009)
Polo, I think that you misunderstood what Anthony was trying to say. He was likely talking about the resale value of hybrids plummeting. In the $4/gallon days of late last year, used hybrids were skyrocketing in value. Now their prices, on the used market, are falling back to a more sustainable, and reasonable level.
You are right on about dying auto sales. First trucks were hit from high fuel prices, then oil dropped taking hybrid sales with it, and finally the rest of the cars followed suit. I may have mixed up the order on that....
Buddy 8:39PM (3/14/2009)
Dear fellow intelligentsia,
My name is Buddy Rojek from Melbourne Australia.
I have a proposal. Forgive me if this idea exists on the internet.
The main obstacles we need to overcome I see is "ease of use/refuel" for long haul traveller, distribution of energy from source (Solar wind, geothermal, coal or nuclear), then the efficiency/power to weight obstacle.
We have the problem of higher petroleum costs ( or diminishing future reserve) and a stagnant world economy. People just don't have the money to buy new vehicles, or many in the third world need a cheaper long run cost vehicle (Factor in fuel use over 20 years of the life of a vehicle and this is the real cost). So they will make do with existing vehicles. At this time in the history of man, we need to rebuild the economy through jobs and find a way to get from a-b with the least amount of costs, to avoid taxing the environment.
My proposal is a uniform approach world-wide, via uniform world government directive to produce a vehicle for the people. We can have different models produced to satisfy consumer wants but the technology/production platform will be the same. This will ensure economy of scale and technology (human capital expertise) sharing.
We need any new vehicles to be lighter. We need to build the frame from Aluminium.
We need to build a battery electric vehicle to provide the best power to weight to space ration.
We need a vehicle that has a removable battery from the bottom of the cart, so that the battery can be removed at a "refuelling station" and replaced, if the user needs to do long haul trips.
The car need to be recharged at ease by the user parking at home, over a "charging point" without the need to attach. These recharging points can be found at parking lots, and the user charged by credit card for "Refuiling"
Everything has to be simple and seamless to ensure the consumer does not need to be "inconvenienced" This will ensure uptake.
This will reduce our need for foreign oil. With use of green electricity generation this will reduce carbon pollution.
The benefits are a reduction in noise, need to get oil changed, or car serviced, replace mufflers etc. Lowering the long run cost of repair.
We have the ability to retrofit motors batteries and charge points in existing vehicles as a transition stage for people unable to afford brand new cars.
What we need is the "Refuelling" infrastructure rolled out.
I am considering developing a company based o this model, and would be interested in hearing from investors or fellow business people. I don't have the capital but I have the dream and energy to lobby this model. I can be contacted at birojek@hotmail.com
Your response, negative or positive would be appreciated.
Buddy
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Dave 8:29PM (5/12/2009)
GO BUDDY GO- the world needs guys like you to move forward!
Herm 12:25PM (3/17/2009)
leasing the battery is not a bad idea.. they are expensive and delicate, and the tech changes quickly. So every couple of years you get a new battery, cheaper, longer range and lighter, instead of getting stuck with ancient batteries. Think then resells your used battery to power companies or hobbyists.
But $20k for just a shell of a basic econobox is not going anywhere. Look at a Nissan Versa, $10k and it comes with an engine... heck I bet you could yank the engine out and resell it :)
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