Electric Car Manufacturers Inspire New Paradigms

Think Global, a Norwegian based company funded by Rockport Capital Partners, Kleiner, Perkins, Caufield & Biers (early successful investors in Google (GOOG), AOL (TWX) and Amazon.com (AMZN) to name a few) and General Electric (GE), is planning to introduce its partnership: Think electric cars in the U.S. market by the end of 2009. Price tag: about $25,000, made from 95% recyclable materials with a top speed of 65 miles per hour and range of 110 miles per charge.

Think is also working closely with the Brussel based Eurelectric, the European union of electricity industry. Think has established a U.S. headquarters and will begin sales in the U.S. before 2010.

The Norwegian company just last week met with Gov. Kulongoski, Oregon as the electric-car manufacturer may be eyeing the “green” city of Portland. Think may use the former Freightliners plant site to employ over 1,000 workers that would ultimately expand to make 60,000 compact cars a year.

Think Global managers want to develop the car plant and launch an engineering center, perhaps alongside. It is aggressively in talks with Portland General Electric Plug-In Charging Stations, (POR) and other states including Michigan, and California that are scrambling to offer incentives. Think plans to decide on a location within a couple of months, investing an as-yet-undisclosed amount estimated.

In addition to a recent electric car deal with NISSAN Motors (NSANY), Portland General Electric, the Oregon state governor and GE have also announced a joint venture with Mitsubishi Motors (MMTOF.PK) to develop and sell the Miev electric car with 85 mile range by 2011. The MiEV runs on a lithium-ion battery pack that can be charged in seven or so hours on a 240-volt line.

Now popular in Europe, Think Global meets all European and US federal motor vehicle safety requirements. By 2011 look for a larger THINK Ox. Think has also established partnerships in the U.S. with battery suppliers A123Systems and EnerDel Inc. (a subsidiary of Ener1 Inc. (ENON.OB)).

Think Global was formerly known as Think City, a prior Ford Motor Company (F) acquisition and part of a now-defunct Think division at Ford. The Think City was short-lived in the States with production halting in 2002 after just 1005 cars had been assembled. The revised Think from Think Global has emerged as popular in Europe with a more stylish design than the earlier iteration. It features ABS brakes, dual airbags, and is designed to meet all European and U.S. safety requirements. The electric car features three different battery options, two different Lithium-based (LI) systems – A123Systems and Enerdel as well as a Sodium-Nickel battery Zebra (Mes-Dea). Creature comforts include air conditioning, power steering, sunroof, and electric windows and mirrors. Think has even shown a convertible prototype. The modular, front-wheel-drive battery electric car has dent-resistant polymer-plastic body panels mounted on an aluminum frame and a steel chassis.

Think will offer a mobility service package is also offered at a monthly fee with “batteries included”. Think Global would own the battery, and take full responsibility for its performance. The customer will only pay a monthly fee about $240 (US Dollars) which includes a full maintenance service agreement; carbon offset payments and in some countries even all electricity used, and insurance. In other words, the customer can drive with the peace of mind that everything is taken care of including battery exchanges for the life span of the car. Tax credit incentives are also available to consumers in the U.S. market for sustainable “green” energy purchases.

Comments

[Mad Hedge F...:]

What about the second derivative effects? The transportation market is in the process of getting fragmented beyond all recognition. There are at least a half dozen different technologies to power cars with electricity under construction. Better Place is building stations in San Francisco, Hawaii, Israel, and Denmark to swap out 1,000 pound batteries in a car wash type set up. The Renault-Nissan Alliance is building fleet charging stations in Portland and Phoenix. The Chevy Volt is going to count on an overnight charge from a standard wall outlet. There are choices for 110 volt versus 220 volt, slow versus quick charges, and solar options. Massive government subsidies are upending commercial considerations. It is reminiscent of the early 1900’s, when steam, electric, diesel, biomass, and gasoline power options competed on a level playing field for consumers’ attention. In the end, gasoline won out because it was the cheapest and delivered the most energy per unit, but it took 20 years to sort out. I wonder how the hapless car buyers without the PhD’s in engineering are going to deal with all of this? This is a much bigger call than choosing VHS over Betamax, because owning a dead end technology could cost you $50,000. I bet a used Stanley Steamer didn’t fetch much in 1925 when gas stations made it to every street corner. Are we all going to have to haul around a trunk load of power adapters like we already do for cell phones, Blackberries, and laptops? Are we even going to need cars, or will they end up as toys of the idle rich and hedge fund managers?

Apr 24 09:58 AM

[BigJake:]

Looks like American car manufacturers are behind the curve once AGAIN!!!! Duh, here's our $40K volt, buy it please?

Apr 24 10:01 AM

[airglow:]

Hey James, if that's a compact car I'm Brad Pitt!

The Think Global would definitly be classified as a mini-car, several size classes smaller than a compact car like the Honda Civic or Ford Focus. This is a City only car, not suitable for most Americans who don't spend all of their time in Manhattan or downtown LA. I don't even want to think of what one of those things will look like after it takes on Suburban.

Electric cars a still a joke. They are either glorified golf cart city cars like this one or they are only for the very wealthy like the Tesla. They are also useless if you ever need to drive over 100 to 200 miles in one trip.

As soon as someone comes up with all day range (300 miles plus) or quick charge capability (less than 30-60 minutes) for a reasonable price (25k - 40k), electric cars will start to take over. The Chevy Volt actually sounds like the logical bridge until all day range or quick charging becomes available.

With a top speed of only 65 MPH and a 100 mile range, the Think Global will remain a niche City Car for conspicuous green consumers who aren’t' concerned about safety.

Apr 24 03:39 PM

[John Petersen:]

Remember that the $25,000 price they've been quoting for the Think City is a "batteries not included" price. If you want the car to drive you someplace, the batteries will take the price over $40,000.

www.autobloggreen.com/.../

Apr 25 09:36 AM

[Jack Lifton:]

Madhedgefundtrader. My dad drove a Stanley Steamer in the early 1920s, and told me about it 40 years later when I was already in college. The fuel was kerosine or anything else that would burn to heat the boiler. He kept the pilot flame lit at night, especially in the winter, so that he could raise steam rapidlly in the cold morning in Winipeg, Manitoba. Remember that a steam engine is an external combustion engine, an ECE. "Starting" the car was a matter of igniting the burner by turning on the fuel flow.

He said that the superiority of the steam powered car over the ICE was that you got full power and torque immediately. The same phenomena that customers like about electric cars.

Gasoline powered ICE using cars won the day by the 20s he said not because of fuel availability-diesels and steamers used the same fuel-but because gasoline and diesel cars had better performance and when "wound up" had more torque, he said.

If you just set aside the fantasy goal of an electric car with the same or better performance than an ICE powered car then we could build utilitarian short range EVs now, and could have been doing this coninually since 1900 with lead-acid batteries. Today we could be using lead-acid EVs, lead-carbon-acid EVs, or nickel metal hydride or lithium-ion hybrids. It is a pathetic joke on all of us that we seek perfection when it isn't at all or in any way necessary.

Twas marketing killed the utilitarian car and replaced it with a status symbol, positional good, and testosterone enhancer. Tis time to return to basics.

Apr 25 12:38 PM

[Wisdom vs. ...:]

65mph, 110 mi, 40k?! this is the same bad news we have been hearing the last 15 years, embarrassing.

Apr 25 01:04 PM

[HerrHansa:]

A golf cart with a nice body, for more than the price of a decked out Mini. Then I recall that my laptop batteries barely ever last four years. Considering the cost of batteries, these are disposable cars. Maybe they can sell it on the ability to be recycled.

The electricity for recharging has to come from somewhere, which means power plants. Depending upon where you live, power plants are often burning natural resources. The true impact of electric vehicles should consider the make-up of the power grids where these cars will be used.

I am more reminded of Segway, or that GM thing that Segway helped them build. Best take on all this has been that SouthPark episode with "It". You want something efficient that uses little resources and doesn't impact traffic and parking, then buy a motorcycle. Want to do better in a short distance, then get a bicycle.

Apr 25 01:51 PM

[Old Rick:]

James, Your analysis ASSUMES that carbon (specifically CO2) causes environmental damage. I think the jury is still out on that in spite of what the left believes. There is significant cause vs. effect debate on CO2. You also repeat the "peak oil" argument that I've been reading since the '60s. We have oil! What we don't have is the political will to develop/exploit it. Think Bakken and Alberta sands. Think offshore development which is currently prohibited. While I believe we need to move to non-petroleum based energy in the 20-30 year timeframe, near term moves away from petroleum can be handled with less/no impact using T. Boone's natural gas (CNG) plans. A few warts there too however. The problem for the left is that NG is still a carbon based fuel (note: you are a carbon based lifeform and exhale 12 liters of CO2 a minute.).

As far as electric vehicles, many writers here have stated some of the issues. Toyota still has not made any money on the Prius. What are the chances that a $40K Chevy Volt would ever be purchased much less make $$. Another point; a Jetta diesel has near the same mileage as a Prius and the Jetta Blue TDI will exceed the Prius. Oh, but there's that nasty carbon based fuel again.


On Apr 25 08:55 AM James Rickman wrote:

> Several global indicators on the supply
> of oil and the known carbon pollution environmental damages its caused
> all lead us to find cleaner ways of transportation. I found two
> great reads on the subject include; "The GAO Report on Peak Oil,
> April 7, 2007
> Crude Oil - Uncertainty about Future Oil supply Makes It Important
> to Develop a Strategy for Addressing a Peak and Decline in Oil Production"
> ; the books "Twlight In The Desert" by Matthew R. Simmons ; "Hot,
> Flat & Crowded by Thomas L. Friedman ; "The Meaning of The 21st
> Century" by Dr. James Martin -- all provide solid data -- I have
> even seen a large increase in people using bicycles in Oregon to
> commute to work - not to mention we might all use the exercise to
> lose a few extra pounds -- for example, bicycles in China are overwhelmingly
> widespread among common workforce people --

Apr 25 03:46 PM

[TinyTim:]

Good article. Glad to see the variety & availability of electic commuter cars (vs hybrids & PHEV) is rising. My personal criteria for an EV is 80/80 MPH/miles range, but that's because drivers either go 80 or stopped around here. It occurred to me after reading another EV article that the size of the battery pack not only affects range, but also longevity because of depth of discharge. While I'd been harsh on the need for outside recharge stations in the past, actually an intermediate charge may extend battery life. Fairbanks AK has had electric outlets on their parking meters forever, so it can't be too lifechanging.

Re performance- with proper engineering, a small light car can protect a driver well. There's no getting around the momentum laws of physics, but if you've ever seen a F1 or NHRA driver walk away from a vehicle broken into tiny pieces in a high speed crash, you get the idea. As far as quick, I'd give my left nut to own a Wrightspeed EV, so I could (quietly) blow the doors off Porsches and Ferraris.

Lastly, hybrids & plug-in hybrids are an unfortunate diversion. Since most families have at least two cars now, I foresee an electric commuter car and an ICE road trip car (you know, an Escalade or Dodge Ram crew cab ;o) in the future. Hybrids are just car makers attempt to hang onto ICE & also sell expensive high margin vehicles.

I see the technical complexity of hybrids is finally coming home to roost at Toyota, which has superb engineering. This article claims many Prius owners have had life threatening experiences with sudden uncontrolled acceleration:
www.phoenixnewtimes.co.../
Uncharacteristically, Toyota is blaming this on the floormats!!
The first law of technology: "Never buy anything with a low serial number."
The second law of technology: "Must be bad software."

Without researching the technology & engineering thoroughly, I think hydrogen fuel cells are a possible alternate. The bottleneck is infrastructure. I'd like to be a fly on the wall when an H2 franchisee asks to put in a hydrogen pump at Chevron. But isn't that what our progressive government is for, to stimulate beneficial technology and break bottlenecks.

Apr 25 06:48 PM

[notsosmart:]

nobody mentioned rubber bands or wind ups clockworks.lol

Apr 25 07:15 PM

[slowdown:]

So....when will we have electric ships...after all they put as much pollution in the air as half the worlds trucks and cars...oh yeah...I forgot...water and electricity don't mix well. I won't be buying an electric car of any kind. They will not meet my needs.

Apr 25 10:24 PM

[slowdown:]

I don’t’ want an electric car…and neither apparently does anyone in or outside of California or Toyota would have jumped on the bandwagon a long time ago. I’m sick of hearing about the Prius….I don’t want one of those either. They are small expensive unappealing cars that will not meet my needs. I don’t just drive to work everyday with nothing more than a bag of golf clubs like the TV ads profess Californians are doing. In fact, I dare you to go stand in the middle of any one of your states boat launches and count the number of Prius’s towing and launching boats. Go to campgrounds in your state and count the number of Prius’s hauling travel trailers or snowmobile trailers in the snow covered mountains, or lumber and landscaping materials of any size and weight from the local Home Depot. Those are the things that the rest of us do in our spare time…so quit trying to shove the Prius down our throats. What I do want is an SUV, cross- over or truck that will meet all of my needs and at the same time be fuel efficient or flex fuel to reduce emissions and dependence on foreign oil. We have those…they are readily available in our own domestic fleet. They are Chevy’s, GMC’s, Fords, and Dodge and have been on the market for 10 years. The transplant car companies….aren’t there yet. They are still focusing on cars that burn gasoline. A car that gets 60 mpg still burns 17 gallons of gas every 1,000 miles versus a car that gets 21 mpg using E85 (my Chevy Impala) that burns 7.1 gallons of gas every 1000 miles. In my mind – the Prius is not the benchmark, my Impala is because it significantly reduces emissions and oil dependency. That’s where we should be investing our money. The infrastructure/R&D needed to produce Ethanol efficiently and economically whether it’s from our own rubbish, wood chips, switch grass or corn (coskata.com). Instead – we wait to see what some other country develops and ships over here thinking that they have our best interests at heart. How stupid and lazy of our leaders to think that “let someone else figure it out” is the answer. I work in the domestic Automotive industry and I’m sick of being told we are idiots because we still build cars and trucks that pollute the earth that no one wants. The reality is that those ships in our harbors…yeah…those are the real polluters – (University of Colorado at Boulder (2009, February 27). Commercial Ships Spew Half As Much Particulate Pollution as World's Cars). Yet you say nothing about the fact that the 51,000 ships that traverse the earth daily bringing in imported goods including oil to our country emit the same amount of pollution as fifty percent of the total number of cars and trucks on this planet! And by the way – those Prius’s that you want us to buy…are manufactured overseas and you guessed it…shipped here and are sitting in your ports. So the way I see it…the ships in our ports not only pollute the earth…they bring in goods from foreign countries that practice economic protectionism instead of reciprocation and ultimately cost us jobs. Did you know that Toyota will not allow California’s NUMMI assembly plant (Toyota/GM joint venture) to export the Toyota Carolla/Tacoma to Japan? Does that bother you? It should. The practice has a direct impact on California’s economy. As for building cars no one wants – when the March sales numbers came out the Detroit 3 outsold the Transplant 5 with Toyota behind General Motors and only slightly ahead of Ford by 8,000 vehicles. Did you really expect the domestic auto industry to maintain marketshare when we opened our market to free trade without first getting commitments from those other countries to open theirs?

Apr 25 10:38 PM

[I'm Not Jim...:]

A niche product for a niche market.

Apr 26 03:04 AM

[User 434374:]

with the world seeking green solutions for energy generation.Is it possible to manufacture a car that powers itself through the gusts of air that it produces when it reaches high speeds.The gusts of wind can be channeled to turn wind turbines in the car which turns dynamos to produce electricity to power the vehicle.The electricity produced can also be channeled to charge the battery used for starting the car thus infinite probability of self powered electric car. [e-mail]

Jun 20 08:10 AM