Saab production stop

The news from Trollhättan is bad but not unexpected. Production will stop for a while and NEVS has short-term liquidity problems.

Saab plant Trollhattan @ saabblog.net
Saab plant Trollhattan © saabblog.net

In a nutshell: Shareholder Quingdao, who has a 22% stake in NEVS, has not yet fulfilled his commitments to provide liquidity. For this reason, National Modern Energy Holdings Ltd. has been financing since the beginning of the year. from NEVS founder Kai Johan Jiang the operations in Trollhättan alone. However, one is not able to transfer the corresponding funds from China to Sweden in the required time.

NEVS will therefore seek and use short-term bridging finance to bridge liquidity problems. The existing liabilities should all be covered. In response to this, it is rumored that for the time being 4 weeks will be suspended and the number of external consultants will be reduced.

The news is grotesque, and at today's Saab production stop, I have a déjà vu of events from the year 2011 in mind. Even if the news does not hit me unprepared, at this point I would not like to write about the situation in Sweden and at NEVS.

The press release from today in full length:

"National Electric Vehicle Sweden (Nevs) is preparing an extensive investment to develop a new platform on the Phoenix architecture, which will be the base for future car models. This development will be done in cooperation with other global OEMs. These collaborations involve sharing cost of development and reduced costs of components through significantly higher volumes.

Nevs has recently signed a frame agreement with a major international automotive OEM. A negotiation with another major automotive OEM is therefore taking place for part ownership. Saab as a global premium car brand name. The partnerships wants to contribute to secure the development of new products and distribution on a global basis.

Even if the long term perspective of Nevs remains very exciting and it is a short term cash problem.

The root cause of the current situation is that of Nevs' shareholder, Qingbo Investment Co. Ltd., has not fulfilled their contractual obligation to finance the operations.

As a consequence Nevs' main owner National Modern Energy Holdings Ltd. (NME) has since the beginning of the year decided to enter the position as the sole financier of the company. Recently, it has not been able to capitalize on its assets in China. This has been done in a time between the financing from China and the need of cash to pay suppliers. As of today NME has transferred over 3 Billion SEK to Nevs and made large investments in China, ie in the new battery factory and the technology development center.

It is important to state that the assets are much higher than the debt. This is bridge solution is planned to be realized in a near future.

To further support the situation financially and give Nevs time to align the strategy with the new OEM partners Nevs will also take short term measures to reduce cost. Among the measures to be taken are a short term stop of production, which today is six cars per day, and a reduction of hired consultants. "

Text & image: tom@saabblog.net

 

33 thoughts on "Saab production stop"

  • The fact that NEVS now runs out of money after only a few vehicles produced does not support solid financing. How one wants to set up a new product on this initial situation is a mystery. This once again makes it clear that in the medium term, NEVS will not have a marketable product for current SAAB drivers.

  • I would not hit a coffin nail !! That will be fine !! In no way compare with 2011. Muller was an air pump !! NEVS not. The Chinese have not only surprised us once and positive! So do not bury your head in the sand, Saab is back !! rely on it !!

  • As a "daily driver" of my 9.3 convertible MY08 with 160.000 km the decision was made for me.
    A seasonal license plate for the convertible and for everyday life something new, however difficult it is.

    • That is roughly how I suggested it to my wife yesterday. My favorite SAABs are already running on variable license plates when the weather is nice, but the good old working 9000 now also appears in a different light. You have to lease some cucumber for the rough, or a small electric car - let's see what happens until winter.

  • Do not throw the shotgun right now. Apparently there has been a recent chill on the Chinese side, new faces with different views. In addition, there have been delays in the electric Saab, the Chinese wanted to get him earlier. Maybe you want to exert pressure here. But what are all the speculations, if you do not know the facts.

    Let's wait, maybe Plan B will even be the better future for our brand.

    I find the story with the two new cooperation partners very interesting. Fingers crossed.

  • I'm sorry, but that's it. Crazy job to start the tapes again and free the GM car ... but so all trust is down the drain.
    Who wants to work at Saab who does not find another employer?

  • Yes, we've had that before. If someone asked me, I would say: Forget the Chinese, share the platform with the Indians, or anyone else, and develop the car together. Then build different cars in different countries on this basis. But this setback with the cessation of production is half the time. As sorry as I am ... bitter

    • How right you are. I do not believe for a long time that Saab gets on his feet again. So maintain the old Saab, until it is not worthwhile.

  • Let's see if the love for the old sweetheart is so strong that it lasts a lifetime. Many have become weak at what young crisp already. Especially when, after times of hope, it is time for delusion.

    • To stick with the picture - you have the old in the stable and enjoy it - you move the new (and that can be whatever it wants - variety) to protect the old

  • Translated to managed:
    Status update of Nevs

    Nevs is preparing a covered investment effort to develop new products from Phoenix Plafttformen. This action will be carried out in collaboration with other global vehicle manufacturers. Clearly, the development costs, and partly at lower cost for the components than larger volumes and greater purchasing power by means of share.

    Nevs has signed a master agreement with a major OEM collaboration to initiate the technological development of Phoenix's architecture into a platform for new car models. In addition, Nevs is negotiating with another vehicle manufacturer as a partner in Nevs for adding more resources to develop the Saab car into a global premium brand. This collaboration will surely help Nevs financially and in terms of development in the long term, and also Nev's chance for the production and distribution of key future markets.

    In the spring, the company got into a situation with an opening balance of cash, to a current situation today does not have sufficient liquid funds to pay outstanding debts. Nev's assets exceed the liabilities, but. The company is currently considering the possibility of short-term loans and cost-bridging until a longer-term financing. Nevs expect this to come in the near future.

    The reason is that Nev's partner Qingbo Investment Co.. Ltd. in the city of Qingdao, has met its commitment to the needs of the financial Nevs company. As a result of this, Nevs principal shareholder National Modern Energy Holdings Ltd. (NME) suspends the funding of operations on their own by using the group's assets in China. That took time and was not on par with Nev's spending flow. To date, NME has yielded about three billion trollhättan.

    Nevs is therefore a temporary and controlled stop of production, which has so far reduced six cars a day, and temporary workers in technology development. This is both cutting costs and investing in the new platform and its products are being sold together with Nev's new partner companies.

  • But - there is one more thing to say - KEEP YOUR TREASURES!

  • Can someone translate that please

    • oh ... there is nothing ...
      of course there is the press release in english ... if not, use the google translator.

    • Peter, that's the Swedish version of today's press release. So nothing new. “EV`s the future” seems to be very optimistic.

      • Let the dead rest, that's all there is to it.
        Or something else - "Even the Chinese don't have money like hay"

  • ... and the groundhog greets forever 😉 🙁

    Sniff sniff

  • So far I had the impression that NEVS is doing a very solid job! Not only in terms of planning, but also an overview of the financial resources and their security. Obviously, that doesn't seem to be the case! On the other hand, it can just happen with a community of owners that one “weakens”! I therefore consider the step of stopping production to be the right decision. It is important that the trust of the suppliers and contractual partners is not lost and that no liabilities pile up! Everything else will be found!

  • If NEVS is running out of money now, it's not a good sign. It is like a slap in the face for fans and customers. Now the fear starts again.

  • In fact, we have already seen that in the past.
    Promise but no actual transfers from the promised money. This is what Victor Muller has experienced so many times.
    Chinezen are but absolutely, right?

  • One can only hope that “A negotiation with another major automotive OEM is also taking place regarding part ownership” has almost come to an end and this message does not deter you ……….

  • That's like a slap in the face!
    After all the good news of the past weeks, the optimism is now strongly dampened and many critics are reiterated in their opinions once again.

    If now the money goes out, after you just started, that is very, very questionable!

    So the fear goes on / off again?

  • Now there's a Volvo, that's it for the brand, was to be expected !!!

    • The problem is, Volvo is simply missing a (beautiful) fabric roof convertible ... ME is an alternative to Volvo only for sedans and station wagons.

  • This again! Well, all positive thinking has not used! 🙁

  • And something like that will hit you on vacation Tom! Just switch off, even from Saab and relax, even if I know, it is not. We just do not want to hear such news, we have suffered too much together.
    Nevertheless, thanks for the information and especially a stress-free holiday.

    • Thanks, I miss either way the words to the current situation!

  • I don't want to read something like that (anymore) ... and I refrain from making another comment 🙁.

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