After filing for bankruptcy for the fourth time in its history last month, electric car manufacturer Think Global AS has been bought by Russian investor Boris Zingarevich.
Think North America and Think UK, which remained solvent throughout, have also been acquired as part of the transaction.
The new Norwegian-registered company has been named Electric Mobility Solutions AS, although vehicles will continue to be marketed under the Think brand. Production is scheduled to restart during the first quarter of 2012, and a new sales and service network is due to be announced soon.
And sorting out the distribution channels is important, because previously the vehicles were only available in Norway, the United States, Austria and the Netherlands. Undoubtedly having such a limited market presence contributed to a measly and financially unsustainable 1,043 unit sales in 2010.
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| The Think City N van was launched in January 2011. |
Importantly, the deal includes a memorandum of understanding with key suppliers Valmet Automotive and lithium-ion battery maker Ener1 regarding their co-operation on the re-launch of Think. Both firms, which were creditors of the firm at the time of the last bankruptcy, are also negotiating equity stakes in the new operation.
Commenting on the purchase, Boris Zingarevich said: “Having achieved the position of one of the world’s most highly regarded electric vehicle products, the Think brand is a valuable asset that deserves to continue its key role in the global shift to electrification. With the potential of working with the leading American automotive lithium-ion battery maker and Europe’s top automobile engineering and manufacturing company, I believe we could have exactly the right combination and value chain to ensure that the brand will be increasingly competitive in the worldwide electric vehicle market.”
Indeed, that is the nub of the issue: Can a comparatively tiny concern like Think compete on price, range and performance in an increasingly crowded electric vehicle marketplace, especially one that’s now starting to attract mainstream manufacturers?
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