Offshore carmakers coming to U.S.

Norwegian, Korean firms are the newest "transplants"

Tom Stundza -- Purchasing, 11/24/2009 2:43:29 PM

Norwegian electric car maker Think Global soon will be making vehicles in Indiana and may open a technical center in the U.S., as well. A Reuters report quotes Charles Gassenheimer, CEO of lithium-ion battery maker Ener1, which has a 31% stake in Think Global. Gassenheimer says the carmaker has applied for a U.S. government loan under a program set up to encourage production of fuel-efficient vehicles.

U.S.-based Ener1 also has a battery supply agreement with Think Global and gave the Norwegian firm an $18 million investment. The carmaker also has received $47 million in seed money from Valmet Automotive and the Norwegian government-backed investment fund Investinor.

Think City will start making its electric mini-car in December in Uusikaupunki., Finland, since it has accumulated 2,300 orders, sales director Richard Waitz told Automotive News Europe last month. He added that the company aims to produce 4,600 units in 2010. Gassenheimer said Think plans to double that volume in 2011.

Meanwhile, Kia Motors Corp. has opened its $1 billion West Point, Ga., assembly plant, the company's first U.S. factory, with production of the Sorrento crossover vehicle. The plant eventually will have annual capacity of 300,000 vehicles. The complex includes transmission production and a body stamping facility. Kia also will supply transmissions to Hyundai Motor's assembly plant 80 miles away in Montgomery, Ala.