NEVS Inks 20,000-Unit Electric Car Deal

JAN 30 2016 BY MARK KANE 11



NEVS (National Electric Vehicle Sweden) again hit the news after Volinco announced its intention to purchase 20,000 electric cars from NEVS.

That’s on top of the announcement of 150,000 NEVS EVs to another Chinese company – Panda New Energy. NEVS hopes to launch not one – but several models in the next several years.

Volinco’s (China Volant Industry Co., Ltd.) official statement from December indicates that the company will be engaged in the production of NEVS cars:

“On December 29, 2015, VOLINCO signed the Strategic Cooperation Framework Agreementand Electric Vehicle Distribution Agreement with National Electric Vehicle SwedenAB (hereinafter referred to as “NEVS”) at the Development Research Center of the State Council, marking its official entry into the hottest new-energy automobile field. In the future, VOLINCO will cooperate with NEVS on motors, electric control systems and other key parts as well as the construction and operation of infrastructures such as charging points so as to develop both domestic and international markets.

In June 2012, NEVS signed an acquisition agreement with Saab’s asset manager to acquire Saab Automobile AB, Saab Automobile Powertrain AB, Saab Automobile Tools AB, Saab Automobile Property, Saab Automobile Development Center,Saab 9-3 and Phoenix Platform Intellectual Property, completely mastering the world’s leading development and manufacturing technologies of new-energy and traditional automobiles.”

A Reuters story from mid-January reveals the framework for a deal for 20,000 electric cars, worth some 8.5 billion crowns ($996 million) or $50,000 per car. Volinco will purchase those cars for employees.

NEVS’s EVs are to be based on the Saab 9-3 and deliveries are expected in 2017-2020.

Again, and as with all these large MOIs for future orders, there seems to be no hard numerical/specific commitments or deposits to buy these EVs from NEVS, so we still have some skepticism around the company’s future, given its very recent shaky financial position – at least until we see some actual volume production happening in lieu of press releases.

NEVS spokesman Mikael Ostlund said:

“The cooperation agreement means we will get an order but the final purchase agreement is not signed yet,” he said, adding that Nevs would also get access to Volinco’s suppliers.

“Volinco is a very large group with many interesting high-tech component suppliers. It is interesting for us to be able to have access to them for our production,” he said, adding that Nevs has not yet sourced the components for planned new models.”

“Ostlund said Nevs, which is building a new factory in China due to be fully operational in 2020, would produce and paint the bodies of the cars for Volinco at the old Saab factory in Sweden, and then assemble them in China.”

Source: Reuters

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11 Comments on "NEVS Inks 20,000-Unit Electric Car Deal"

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Sounds like a recipe for Bankruptcy !

Why, it sounds like the opposite.
Ready more about what to come :

Sounds like the Chinese want to OWN this market.
Bankruptcy for someone, not them.

Well, when two of the elements are the Chinese and creative financing, it does give one pause, albeit a brief one, to speculate on the future, or lack thereof, of this whole amalgamation called NEVS.

Why not just buy BYD cars for your employees? I am sure they are a lot less than $50k a piece and not based on an old 9-3.

Funny but true… I think someone behind the scene is getting well greased , What they’re doing doesn’t make good sense …

It’s not just cars they are buying, service and development for auto parts.

Just like Solar, not one panel or EV should be leaving the Chinese Mainland, that’s how polluted it is.

This is great the 9-3 is a good design, now electric.

Yet more empty PR, in the absence of any corroborating evidence (like setting up production facilities, or prototypes being shown). It also seems highly suspect that the car bodies for Volinco in China will be produced in Sweden, not exactly a low-labor-cost country.

A press release from a source with known credibility, or a big automotive or electric player is one thing, but why does InsideEVs insist on reporting press releases from untrustworthy sources with no other backup? That risks undermining your own credibility, which is a shame.

I think Reuters is a little more trustworthy than that, and its been fairly well reported in Sweden too (although no one there really seems to believe it)