Lack of funding forces NEVS to suspend Saab production for 4 weeks

Article by Christian A., on May 22, 2014

Production at Swedish carmaker Saab has been stopped temporarily due to lack of funds at parent National Electric Vehicle Sweden. NEVS recently disclosed in a statement that it currently has no sufficient cash to pay outstanding debt since its part-owner, Qingbo Investment Co., has not fulfilled its commitment to finance its activities when needed. NEVS is also cutting its workforce.

NEVS spokesman Mikael Ostlund divulged that the company will start idling its Trollhattan plant in Sweden on May 22, 2014. The production stoppage will last for four weeks. Qingbo -- the investment agency of the city of Qingdao, China – acquired a 22-percent stake in NEVS in 2013 and has ordered 200 Saab EVs for the city.

Ostlund clarified that Qingbo has not terminated the agreement and has vowed to complete it. NEVS is staking its revival plans for Saab on an EV version of a decade-old model, targeting China as its primary market.

The EV version of the model is planned to compete against models built by BMW, Volkswagen and Ford. According to NEVS, it was in talks with another carmaker to co-develop a new platform for new models.

The company said that it is also holding discussions with another carmaker over a possible stake acquisition in NEVS. Ostlund remarked that NEVS is seeking “bridge solutions” until June when the results of the talks are expected to be known.

Topics: saab, production

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries