“You Need Money To Build Cars” – NEVS Halts Saab EV Production

MAY 21 2014 BY JAY COLE 6

It was just about 4 weeks ago that we reported the news that NEVS (New Electric Vehicle Sweden – ironically co-owned by Qingbo Investment Co. out of China) had begun low volume production of the SAAB 9-3 BEV for delivery late this summer..

That initial order of 200 fully electric SAABs was headed for delivery to the city of Qingdao, China either by the end of Spring or this Summer.

SAAB under the hood

SAAB under the hood

Well, not so much with those expectations it turns out, as the company had to halt production due to the pesky “whoops, we ran out of cash and haven’t paid our bills” problem.

The company says it is in arrears of its long standing debt due to Qingbo (the investment agency of the city of Qingdao) not writing further checks to NEVs after it had burned through its the cash on hand.

“The reason is that NEVS’ part-owner, Qingbo Investment Co., has not fulfilled its commitment to, when necessary, finance NEVS’ activity.  NEVS is therefore making a temporary and controlled halt of production, which hitherto has been six cars per day, and is reducing agency staff.”

NEVS spokesman Mikael Ostlund said that the company’s Trollhattan plant in Sweden will be idled for four weeks starting on Thursday May 22nd.  The NEVS rep was quick to point out that this was not the end of NEVS or this contract to produce 200 electric 9-3s, but a hiccup in acquiring the funding for it.

“Qingbo hasn’t terminated the deal, they say they will complete it. But we haven’t received the financing they had agreed with our main owner,” Ostlund said.

Automotive News reports that NEVS said it was negotiating with other OEMS to co-develop a new platform, as well as currently engaging in talks with another carmaker about buying a stake in NEVS.

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

…so it still doesn’t sound like the future is all that bright in the electric SAAB business.

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6 Comments on "“You Need Money To Build Cars” – NEVS Halts Saab EV Production"

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So there’s a near-bankrupt company making EV’s for Saab? This is intriguing.

No not really. SAAB went bankrupt in 2011 and a new formed company called NEVS (National Electric Vehicle Sweden – which has both Swedish and Chinese interests) bought the SAAB trademark and its bankrupt’s estate. NEVS has since december of 2013 manufactured around 100 SAAB 9-3 cars in total, all with gasoline engine which were sold to the public. NEVS plan is to start building a new electric SAAB on a large scale on the almost finished Pheonix platform. A few SAAB 9-3 (over 10 year old platform) without the gasoline drivetrain has already been manufactured to be shipped to China for the final electric drivetrain assembly.

Now we have to wait to see if the funding will continue to roll in, or if the story of SAAB will repeat itself from 2009 when Spyker bought the company and later went out of money – which led up to the bankrupcy in 2011. I have hopes for SAAB, but I am sad to say that today I’m abit sceptical. =/

Ah, thanks for the clarification. I knew I must have missed something. 😉

They have already got a new partner a big car maker.
Read more:

I can’t understand all the negative comments, they have only changed partners and shall adjust the factory for new parts. Other car makers have done that before without any critical comments.

Yeah yeah… just another SAAB story.