Saab owner National Electric Vehicle Sweden (NEVS) facing financial difficulties

Article by Christian A., on August 13, 2014

Things are not working quite well for the National Electric Vehicle of Sweden (NEVS) a.k.a. the company that lifted Saab out of bankruptcy. It appears that the parent company is now facing the same problems as Saab as a Swedish court declared NEVS bankrupt.

The reason is that the company failed to pay Labo Test, which supplies test equipment for car parts. NEVS has failed to pay SEK150,000 or $22,000 since February.

For those who don’t know, NEVS is owned by a group based on Hong Kong and acquired Saab out of bankruptcy after Spyker Cars failed to revive it. Back in May, we announced that Saab production was stopped due to lack of funds at National Electric Vehicle Sweden.

The reason was that the company didn’t have sufficient cash since its part-owner, Qingbo Investment didn’t fulfill its commitment to finance its activities.

Qingbo is the investment agency of the city of Qindao, China and owns a 22-percent stake in NEVS. Back in 2013, Qingbo ordered 200 Saab electric vehicles based on the 9-3 sedan.

The acquisition of the assets of Saab Automobile AB – as well as subsidiaries Saab Automobile Powertrain AB, Saab Automobile Tools AB and its Saab factory – by NEVS was announced in June 2012. However, NEVS wasn’t able to acquire Saab Automobile Parts AB, which remains in the ownership of the Swedish National Debt Office.

Initially, NEVS planned to build only purely electric vehicles, including an electric version of the 2013 Saab 9-3 model, as well as continue the development of the Phoenix, which would be the replacement for the 9-3. However, former Saab owner General Motors continued to refuse licensing of the technology installed in the Saab 9-5 and 9-4X, resulting to the non-production of these models.

At first, Saab wasn’t able to use the Saab name on future cars. In September 2012, NEVS announced that it had completed the acquisition of Saab Automobiles’ assets. While NEVS could use the Saab name, it was still forbidden to use the griffin logo.

In January 2013, Qingdao Qingbo Investment Co. Ltd. acquired a 22-percent stake in NEVS for SEK2 billion and a production facility for models sold in China. Cars bound for North America and most of Europe would still be built at Saab’s plant Trollhättan, Sweden. In August, the plant reopened, and NEVS’s first Saab-brand vehicle rolled off the assembly line in September.

n June 2014, NEVS’ creditors were reported to have filed at the National Enforcement Agency in Sweden for debts of around SEK10.4 million.

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Topics: saab

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