New Think: Buy the Electric Car, Lease the Battery

photo by KnutBry/TinAgent/Think Technology
Green Wombat popped into the Cleantech Forum in San Francisco this afternoon, where venture capitalists, entrepreneurs and others are confabbing about the latest trends and opportunities in green technology. Among the more intriguing companies in town was Norway's Think. The automaker is building a two-seater electric runabout with a range of about 115 miles (185 kilometers) called the Think City. What's cutting edge about Think is not so much its technology as its business model.  The company plans to sell its cars but lease the battery for either a monthly or by-the-mile fee. "By leasing the battery the consumer doesn't take the risk over the unknowns of battery life," said Think president Jan-Olaf Willums. Presumably, as battery technology advances, Think drivers can swap their power plants. "Our returns come from both selling the car and the services for which the car is the platform," he added. Among those services is a package that will include on-the-road WiFi,  GPS navigation and a media player. "It Will be most IT oriented car on wheels," Willums claimed. He said Think will also offer short-term car sharing and a program to offset greenhouse gas emissions from the electricity used to power the vehicles. "We're moving from a car concept to a mobility concept. People look more and more at the full cost of ownership."

The company closed a $25 million round of financing earlier this month and expects to complete an additional $50 million round in a few months, which will allow it to begin selling cars in Europe by September, according to Willums. He said the company expects to start selling the Think City in the United States in 2008. The company launched in 1990 and Ford (F) acquired the startup in 1999. After producing about 1,000 electric cars, Ford sold Think to a Kamkorp Microelectronics. That company in turn sold Think to its current owners, a group of Norwegian investors led by Willums.  So how does Think think it will succeed when automotive giants like Toyota (TM), Honda (HMC), General Motors (GM) and DaimlerChrysler (DCX) argue that the all-electric car is not ready for prime time? Think's answer is, dare we say it, think differently.

UPDATE: See Green Wombat's feature story on Think ("Have You Driven a Fjord Lately?" in the August issue of Business 2.0 magazine.

"We don’t have the baggage from Detroit," Willums said. Also, he noted that as global warming worries rise, European countries are offering financial incentives for electric car ownership, such as waiving thousands of dollars in taxes, registration fees and "congestion" charges imposed for driving in city centers. And driving small cars is nothing new in SUV-averse Europe. Then there's the jump start Ford's ownership gave Think. "We have today a fully developed and tested vehicle," Willums noted. "We were so lucky Ford spent a fortune on a very good car before they pulled out. Thanks to Ford's $150 million investment, we can introduce a modern city car in 2007 that meets the growing demands of the market."

Comments

[George Beck]

It's about time that we were offered an electric car, which, to me, makes more sense than the alternatives on the market.
When I was a kid, over 70 years ago, I recall being in downtown Chicago, where I saw some unusual black cars. They were unusual, in that their front end looked just like their rear end. My Grandfather told me they were electric. Imagine, being able to charge these overnight, when electricity is at its cheapest.

[Karen L. Seamons]

As a Ford stockholder, I'm furious. They threw away $150 million of the shareholders' assets....anyone care to start a class-action suit?? They seem to want to go bankrupt; if we won't buy one of their gas-hog SUVs or super- trucks, they force us to go elsewhere. I'll buy the first THINK I can find. Right now I drive a 32mpg Focus wagon that does everything a pickup truck can do, but can't buy another because they've discontinued the model. I could buy one in England, but not the US, the same car!!! I'll hold on until the THINK comes out. Ford.....you've sold me my last car.

[David Pagan]

Sounds like a great concept but the electric car won't begin to hold any ground in the United States until you have ones that can compete with current gasoline powered cars. If there could be more electric cars like the Tursa roadster for the fraction of the cost, then we have a revolution going on.

[Greg Dillon]

If anyone remembers, there were several EVs before this. This is not a new technology, even for Ford who had Ranger EVs once upon a time. In fact, every major auto maker had a prototype that they leased to a very small market around the same timeframe. There's a documentary, "Who Killed the Electric Car?" by Chris Paine, that showcases the plight of the electric car. In the film, GM is the major villain, but the other auto makers (including Ford and Toyota) also follow the same route of recalling all of their leased vehicles and destroying them as GM did. I also agree (as one of Ford's stockholders) that Ford deserves a swift kick in the pants for selling off the Think and kudos to Green Wombat for aquiring a truly plausible solution to the issue of global warming. Perhaps they'll maintain enough backbone in the face of competition to see this through. Good luck, Green Wombat!

[Tony B]

Yeah! Electric cars! Build up those coal fired electric generating stations!

[Liz]

What market are they trying for. 115 miles is not very far for a return journey. Until electric cars can compete on mileage they will not truely take off.

the think is still welcome though!!

[Kyle Dansie]

Electric cars ROCK !!!

No need for coal power plants, I buy all my power from wind generators, thank you :)

[Corey K. Tournet]

I agree, 115 miles isn't enough. Yes, it is enough for most daily travel. However, this will limit the sales to "green" customers, as many people can only afford one car, and won't want to rent a car whenever they have to take a longer trip (i.e. to pick up a friend at the airport).

Also, how much will they cost?

[kim parker]

i have been researching electric cars to figure out which one to get. i moved closer to work (i can even walk) but i don't want a gas powered car at all. 115 miles on a charge i am thrilled about. i have been looking at the xebra by zap, test drove one too, it goes no more than 40 miles on a charge. so i'll take 115 miles a charge, no problem. for those of you who don't want to rent a car to go a longer trip, get over it. (look at flexcar.com) you do it because owning an electric car is the right thing to do. the more people who buy them the sooner electric cars will be developed that can go 500 miles on a charge. when i test drove the xebra it is alright, bumpy, and bare bones on the inside. i wouldn't buy it because it is fabulous car, i would buy it because it is important and again, because it is the right thing to do.

[SusanK]

But how can we in the US buy any of these? Theres only Detroit for us poor saps, right? Or could someone import all these great European electric cars?
They seem to show in Geneva, Switzerland, but never get here.
http://www.theaircar.com
http://blog.wired.com/cars/2007/02/subarus_r1e_ele.html

[David Fraser]

It is true, electric cars do make more sense than combustion engines. Very little is said about the lack of maintenence and repairs to electric motors. Electric cars are simple and will be here soon...check out http://www.revaindia.com/futec.htm . I have been told that a left-hand drive model will be for sale in the USA this summer. I like the REVA NXG with a top speed of 120kph and 200km range.

[Colleen Dailey]

Think is wonderful!!!! You are also a threat to American made cars. But I know if you cam to the USA I would but a Think and many other people would too! I think the sooner the better. Many Americans only know what their government wants them to know and that is dependecy on oil. If We, Americans had the chance to buy a fully electric car I belive they would!!!!!
KEEP UP THE GOOD WORK! SOME ONE HAS TO HELP AMERICA! Bush wont. :(

[CommonSense]

I think there must be some kind of conspiracy going on. Lots of Americans wants to buy these kinds of cars, yet none is available here. It's really weird. It is true, this is not a family car, and certainly not one for long distance driving, but think about it for a second. Most of us spend 95% of the drive time commuting to work and going to the local gym or grocery store etc. This is city driving with poor mileage and when gas is $3.25, as is it was today, "it hurts". I'd love to have one of these for city driving and save my other car for the long trips. Most families have at least two cars anyway. Why not make one of them an electric car and still have the flexibility of using the other car for the long trips. It makes a lot of sense to me. The car looks cute, but I hope they have some with more "toned down" colors as well. I don't really want to "advertise" my car for miles.

[travis]

no need for more coal fired plants with electric cars. Most ppl will charge up at night when we don't have our lights on and when the world isn't using close to the same amount of electricity as during the day. Thus the current infrastructure will suit just fine. And though we will use more coal as a result of plugging in (unless we opt for green energy), we still save a lot of greenhouse gases from being created given the following argument. First, a vast majority of greenhouse gases from cars comes from a small percentage of cars that are not tuned up or have some problem. This way we isolate the greenhouse gas effects to only the electricity generating plants, easing the ability to regulate greenhouse gas emissions and saving money because we don't need to have emissions checks on individual cars. Second, we don't need to ship oil halfway across the earth, reducing transportation costs/greenhouse gases. Third, we have less weight in the car w/o a huge gas guzzling engine, instead just batteries, while though heavy, are not close to as heavy as the engine. I could name more benefits. Overall benefits for moving to all-electric cars are huge! For those who can only afford one car and need to be able to go 150+ miles to the airport or something, well we need to push for either 1. better batteries or 2. push for plug-in hybrids that can guzzle a bit of gas for longer trips.

[Lisa E]

I am really jazzed about the possibility of converting a hybrid or buying an EV, but what about when the batteries get old? Are they recycled or what happens to them?

[Yordan Georgiev]

Thinking about France - 80% of their electricity is nuclear - without any accidents, clean air , etc.
Finland built also a next generation nuclear plant ...
Sweden grows its own biofuels ...
Consider this before giving your next dollars to the arabs, detonating civils

[greencar]

Imagine you could buy a car with a battery and
a motor which is just made of 7 pieces of metal.
1 KWH per 1kg of weight of the motor. Imagine you could burn all kind of fuel - hydrogen, gas, alcohol, gasoil,vegetable oil with the samee motor - without changing anything... Just take a look on www.stelzer-motor.com. It really works I ve seen it. everybody can take a close look. Who will build it ? China ?

[Kathy]

Hmmm... I wonder what sort of charge it would take from a portable solar panel? Would it be enough to charge while it's parked at work?

[lvogt]

I average less than 10 miles per day commuting and shopping in downtown Chicago. This would be ideal for me. I suppose since it's Norwegian it can handle snow and cold. I could charge it with home solar panels. There are companies who will install the panels free and sell you the energy at today's price locked in for up to 25 years. It's certainly worth looking into.

[Kevin]

Does anyone know what kind of maintenance these cars will require? Can you point me to any articles discussing maintenance on hybrids/electrics cars?

[Francois]

I will like to drive A Think in Quebec because here the electricty is so cheap that will be a good deal for us .Imagine if toyota,GM Ford will get togother to buil a green car come on it is possible but do the industrie of fuel like this ideal...!

[Rob Matthies]

How many electric cars are now running in London because of the congestion tax? Is it really as high as 14,000 which is what "The Economist" article stated?

Did you know that Vancouver, Canada has the world's first licensed electric pickup truck that has a "zero-cost" battery -- runs entirely on discarded batteries that considered dead or unusable. There are *three* battery breakthroughs in this electric pickup truck, as well as a half-dozen workarounds/fixes to the (usual) weak components found on electric cars.

Here's what the Global TV evening newscast aired, from a Youtube download:
http://www.youtube.com/watch?v=UEq-GbVcFTA

Also, check out the EV Album entry for this electric pickup truck, with a Google search for EVALBUM FREEB or WORLD'S FIRST REVIVED BATTERY PICKUP DIARY.

Why bother to revive dead batteries for the electric car? In British Columbia, Canada, 80% of 4-wheeled electric cars are sitting unused because they are TOO EXPENSIVE to run, costing 2X-10X more than gasoline. One member of the Vancouver Electric Vehicle Association got less than 900 kilometers from his EV battery pack before it needed replacement, at some $1,700 cost. Therefore, it's quite possible that Londoners will be abandoning their electric Reva G-Wiz, Maranello-4, Mega City, Th!nk, cars, too. The "FreeB" in Vancouver runs off cost-free discarded batteries. Would London electric car or electric scooter or electric bike owners like this, too?

Please reply by email to:
Rob Matthies
Vancouver, BC, Canada
robert04mat@yahoo.com
or phone Canada:
(604) 739-7717 [with Jajah, call us free, we're on Jajah, too]

[scott anderson]

were can i buy one! cost?

[scott anderson]

were can i buy one! cost?

[Todd Woody]

See Green Wombat's feature story on Think ("Have You Driven a Fjord Lately?" in the August issue of Business 2.0 magazine. A link is in the post above.

[Laveda Wood]

I like the ideal of electric car, but it need to go up to 80 mph on the freeway. i can't afford car payment and rent a battery too. people living on fix income And low wage worker need cheap transporation. the bus system in green bay wisconsin is very limited. the bus stop is 5 miles from where i work. we need at car under $6,000.with battery rental or replace. if you work 40 hr a wk on minumun wage. the bank not going to loan you over $7,000. because you can't make the payment.

[Aquadican]

Check this out!!!

WWW.ELECTRICSTREETRODCORP.COM

Finally, Someone is making an electric car that really looks good...

I found out that they are going to offer their vehicles at 48K...

Is that a good price?

[Venuette]

Thanks Aquadican, These cars are really cool.
I am really thinking about buying one for my boyfriend. It has the street rod look that he loves. They say that their car has a range of 100 miles. I think that is plenty but my boyfriend will have the option to buy additional 50 mile battery packs so we can drive it 250 miles. Another good thing is that the charger is onboard and uses a standard wall outlet so we can drive it and charge it anywhere.

[G8RNation]

What Americans don't realize is that if we go to a nation of all electric cars, you will still PAY. Why? Because of electricity. As more demand for electricity increases because of the increase in the number of electric cars, that means more demand for coal, which is how most Americans get their electricity. Guess what that does to your power bill? You got it. And coal is NOT clean and good for the environment. The only REAL solution is to get this country on alternative forms of power....wind, solar, bio-fuels (and NOT ethanol...that is NOT the answer either...it does NOTHING with gas prices but just makes food stuffs more expensive, it is NOT good for the environment either...and it is NOT going to get us off of oil since we could never make enough of it)

[FloridaBoy]

Everyones points are well made what we all need is a EV:
Made from Carbon Fibres which are 25% of the weight of normal materials, and stronger than them too. Example Tesla Roadster @$92,000 this is too pricy.

Made with long lasting efficient next gen-Lithium Ion batteries that use capacitors to extend the life and provide extremely fast charge cycles, with warranteed life span of 10+years. These batteries last longer and are quick too charge. Imagine a battery that charges to 80% instantly. The technology is already in use in devices like cell phones. Example: Apogee Capacitors

The above combined with lightweight efficient and durable motors, would need to provide a EV that can last for 10+ years, get 300miles to the charge, and run atleast 80mph. The quick charge aspect of using supercapacitor battery technology would also solve the problems of ALL alternative fueled cars which is : How do you convert the existing OIL based infrastructure ie.. Gas Stations.

[Geoffrey O. Hartwig]

I love the concept of an electric car. Being from Texas and loving the big outdoors, I would love this driving option even more if I could buy a convertible pick up truck.

[Johnzane]

I've seen a few of Think's City cars tooling around San Francisco recently, and parked around City Hall. I had a chance to drive one of the test models some years ago, and was very impressed with the handling, and acceleration. I took it up Dolores hill, past the park, and the unique shifting mechanism was smooth. Too bad Ford gave up on it, but I can understand why, the City back then would have looked silly in their line up of vehicles. Now that gas is over $4/gallon, the economy is reeling from bad investments, and green industry is hailed as the true path to redemption, maybe it's time to bring the City back to the bay. $13K and $100/mo lease maintenance is cheap for a car you can drive into your loft without killing the air. I wonder how much it costs to recharge? If they ever outfit these things with regular edison plugs, we'll be looking a real mobility, and maybe even banking electric power on the grid. I'd certainly consider it over the Smart car, which is as cute, but like my rav4, still gets only 22 mpg. If only the City came in a gloss finish, and all white!

[dick leuellen]

like too know more about think , and where i can see and drive , one , more information, dick

[N Montoto]

When the new administration zaps the oil companies next year with windfall taxes and oil production is cut back. You can drive by the long lines at the gas pumps and wave bye to the fossil fuel vehicles.