UPDATE 1-Norway electric carmaker seeks aid, halts production

"Every day we are getting increasingly positive signals."

Earlier in December, the Swedish government said it would provide up to 25 billion Swedish crowns ($3.15 billion) in credit guarantees and emergency loans to its ailing auto industry, but has no plans to buy stakes in Volvo or Saab.

RAMP-UP

With one car model in production, the micro Th!nk City, the group plans to ramp up production next year, launch the car in several European cities and set a date for its U.S entry.

Th!nk City has been in production since late October, and the company produced between eight and 10 cars a day. It aims to reach 44 units a day when running at full capacity sometime in 2009.

The company also aims to launch a four-seater version of Th!nk City, which is an emission-free, 95 percent recyclable car with a maximum speed of 65 miles an hour.

A five-seater is expected to be in production by 2011.

"We are ... about to become the world's largest electric vehicle manufacturer which will grow over the next 6-12 months period as we expand from hundreds of units to thousands of units," Canny told foreign reporters during a visit to its offices and production plant on Friday.

Think plans to launch its offer in Copenhagen and Stockholm first, then moving to Paris and London. Th!nk City -- about the size of a Toyota Yaris or Honda Fit -- runs on sodium or lithium batteries and can travel up to 110 miles (177 km) on one charge.

In Norway, which has high taxes on cars, the two-seater costs 212,500 crowns ($30,950), compared with about 170,000 to 190,000 crowns for comparable petrol cars, Canny said. (Editing by Andrew Macdonald)