Norwegian electric car maker Think has said it is talking with the government to escape its "urgent financial distress."

It was finding it difficult to obtain working capital while suppliers were imposing tougher delivery terms due to the global financial crisis, Reuters reported.

"There are limited possibilities for funding working capital through bank credits without extra guarantees in today's financial markets," Think said in a statement.

"The dialogue with the Norwegian government regarding urgent financial distress is well established and ongoing."

The news agency noted that Think has gone bankrupt twice, last in 2006, but found new life with the backing of new owners and investors.

There are plans to double capacity next year when the plant is due to move to two shifts from one and boost capacity to 10,000 units a year.

Launches in European cities and in the US are also planned.