NEVS Lays Off 200 Workers, SAAB 9-3 EV Delayed – Bankruptcy Coming Soon?

3 years ago by Jay Cole 11

Future Of The SAAB 9-3 EV Now In Question As 200 Workers Laid Off

Future Of The SAAB 9-3 EV Now In Question As 200 Workers Laid Off

It was only two weeks ago that we presented a first drive report on the new SAAB 9-3 all-electric prototype, and while it was no secret that finances of parent company NEVS (National Electric Vehicle Sweden) was questionable at best, this week’s news is disturbing nonetheless.

SAAB 9-3 EV Prototype

SAAB 9-3 EV Prototype

NEVS is now formally laying off 200 workers, and has put the launch of the SAAB EV on hiatus.

Previously in May, NEVs stopped all production work on the car as the company searched for replacement funding from a delinquent partner.  At the time a spokesperson was confident production would resume quickly.

“We are now seeking bridge solutions until sometime in June when we expect to have the result of the discussions with the intended partners,” SAAB rep Mikael Ostlund said.

Not so much.

The layoffs will happen this week, and with no clear financial exit strategy, it appears likely to us NEVS will be heading into bankruptcy soon as a meeting with creditors is planned for October 8th.

NEVS made the following statement today:

Nevs announces intention to lay off up to 200 employees due to lack of work, as the decision to re-start production will be further delayed.

Inside The Saab 9-3 EV Prototype

Inside The Saab 9-3 EV Prototype

Nevs has retained the permanent workforce for production since the production was stopped in the end of May this year. The reason for this has been that the company would be ready to quickly start up production, upon such decision.

The prerequisites for making a decision to start up production are to have long-term secured funding and a business plan that has been worked through together with a new majority owner.

The ongoing discussions on collaboration and ownership structure, which has not yet resulted in a binding agreement, indicates that the decision for a start-up of production will take time.

With this there is a redundancy of the workforce. Therefore, Nevs’ management has decided to hand in a notice of intention to lay off up to 200 employees to the Swedish Public Employment Service.

The terminations will take place in September in order to rapidly reduce the company’s costs during the reorganization period. This is a step in the reorganization plan that the administrator will present on the creditors meeting on October 8.

Nevs intends to retain the remaining staff to maintain the plant in good condition, to be prepared for the new production, after such a decision is taken, and to continue developing new products.

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11 responses to "NEVS Lays Off 200 Workers, SAAB 9-3 EV Delayed – Bankruptcy Coming Soon?"

  1. Mikael says:

    Just let it die already…

    1. john says:

      No , wait and see!
      If they get good partners they will have nice EV’s for us to buy. See here:

      I want one, good quality car and fun to drive (300km = 186 Miles)

      1. Mikael says:

        Look… I would love it if they would be able to survive and be competetive again. The engineers are (were? I don’t know how many they have left anymore) brilliant and they have always managed even with fairly little money and relatively small quantities of sales.

        But to really make it work they would need a chinese sugar daddy that understands that they would need to put in a lot of money and time to make it happen again.

        I’m afraid that if you want a SAAB you will have to look to buy a Qoros instead. Where a lot of SAAB engineers are today.

  2. kalle says:

    that factory might be something for tesla to keep an eye on, it is a rather good one.
    😉

    1. Rob Stark says:

      Under SAAB, the Trollhättan plant had a capacity for 190k units.

      Tesla does not plan small.

  3. offib says:

    Oh for feck’s sake!

  4. jmac says:

    Saab was a unique car company. They made a three cylinder, 2 stoke engine that Saab used until the late 1960’s.

    Just think of the sound of a chain saw and you have the basic Saab sound.

    Here is what you had to do to drive a two stroke down the road.

    And the sounds—- the incredible sounds that they made…..

  5. PG says:

    It Will be ok, I’ve read about their plans for the future.

    1. Mikael says:

      And they are?

  6. Rob says:

    Hey Jmac,i bet Erik ‘on-the-roof’ Carlsson didn’t drive HIS Saab like that 🙂
    Legend has it, that you would see his palm prints on the ground on the outside of right hand bends…