The electric vehicle (EV) manufacturer Th!nk has filed for bankruptcy for the second time in its short history – highlighting the changing needs of the green consumer market and the immense challenges facing this industry.
The company produces the City, a Smart-sized EV meant for inner-city consumption, and was one of the pioneers of the EV industry in North America. Th!nk’s impending demise highlights the challenges companies face when they do not receive large government incentives (most noticeably Tesla) or have large-scale investment from a parent company (Nissan Leaf and Chevrolet Volt).
On a recent trip to California, I had the opportunity to chat to Marti Eulberg, vice president of sales and marketing for Fisker Automotive. Fisker operates at the other end of the EV spectrum from Th!ink and has only recently launched its Karma luxury plug-in hybrid-electric vehicle (PEV), following many years of marketing activities. In fact, most people that I’ve spoken to since returning to South Africa thought the Karma was launched years ago. “We have been very proactive in our publicity of the Karma, being at every motor show and public event possible over the last five to six years. We needed to boost the Karma’s profile in order to find investors for the programme,” Eulberg said. It took close to a decade for the programme to reach production. Compare this to the much shorter turn-around time needed for Chevrolet and Nissan to introduce the Volt and Leaf.
The fact remains that EV development is extremely (even excessively) expensive and, while technology advances continuously lower costs and increase efficiencies, smaller companies will struggle to keep pace as more mainstream manufacturers enter the fray.
Th!nk will probably be rescued by private investors: the EV industry is becoming increasingly viable and, while the larger manufacturers focus on large family vehicles, there may be a niche market for inner-city EVs. The company has tried to broaden its appeal, having recently launched a panel van (for inner-city deliveries) as well as a 2+2 derivative, but it has all come to naught.
At roughly US$35 000, the City costs about the same as the much larger and better-finished Nissan Leaf, which I drove during my visit to California (CAR, June 2011). This isn’t good news; Th!nk will need to drastically reduce its costs, invest in research and development and perhaps produce a more mainstream offering. Let’s hope it can find enough money to do this.