Credit crunch hits Norway’s electric car maker
by David Masters
December 18, 2008
Norway-based electric car maker, Think Global, has declared itself in a funding crisis, and has temporarily laid off half of its workforce until the end of January.
The news comes just two months after the launch of Think’s flagship model, the Think City.
Extra-cautious suppliers have started demanding up front payment from Think, whilst the company is finding it increasingly difficult to secure financing following the global credit crunch.
In a last ditch effort to raise funding, Think went hat in hand to the Norwegian government asking either for a loan, loan guarantees, or a capital injection in exchange for a stake in the company.
Norway’s government, however, declined to help.
The staff temporarily laid off – over half of Think’s 250 employees – will lose their jobs permanently if the group cannot secure funding by mid January.
CEO Richard Canny said the group needs $40 million to continue operations, but the government is insistent that it will not be granting state aid.
The company, previously owned by Ford, has already gone bankrupt twice.
It planned to double production in 2009, including the roll out of a new version of the Think City, a 95% recyclable model with a top speed of 65 miles per hour and a 100 mile range.
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