Explosion triggers the NEVS crisis?

Yesterday, Dagens Nyheter wrote that the cause of NEVS 'financial problems may be in a devastating explosion on 22. November 2013 Qingdao rocked.

Pengar crises at NEVS
Pengar crises at NEVS

At that time, a leak was discovered in a pipeline in China's largest oil company, Sinopec, in Qingdao's industrial area. An attempt to repair caused an explosion that cost the lives of 62 people. In addition, more than 100 injuries were reported, 18.000 people had to be evacuated. It was one of the worst industrial disasters in China last year.

Those blamed for the disaster include Zhang Dayoung, party secretary in Huangdao, a Qingdao economic development zone. One of the key players when 2013 signed the agreement between NEVS and Qingboo investment company Qingbo in January. He was dismissed in January 2014 as party secretary. Together with the remaining in office mayor Zhang Xinqi he wanted to settle in Qingdao new industries.

In the new, at the 12. The industry development plan in Qingdao is no longer mentioned in the automotive industry.

Only summer theater or facts?

So much for Dagens Nyheter. One might wonder whether the “Pengar crises” at NEVS should fill the gaps in the summer time, which is poor in news. Unfortunately this is not the case. Because what Dagens Nyheter publishes about the NEVS crisis has been known for a long time, but too speculative to write about it.

Zhang Dayoung's dismissal in January coincides with the sale of Kai Johan Jiang's Chinese assets, which also began in the same month. According to another Chinese source, the explosion sparked investigations that uncovered corruption and sloppiness around the investment company. Several high-ranking officials were disempowered, the automotive industry and NEVS is now settled for Qingdao.

Whether for Saab not only the Quingdao issue, but also China in general, is not certain. Mahindra is said to be working on the entry or takeover, but the negotiations are unconfirmed on all sides. The “Economic Daily”, on the other hand, as a Chinese source, sees NEVS in negotiations with several Chinese automobile manufacturers ... but without naming them. The progress of the Saab saga is more uncertain than ever.

Text & image: tom@saabblog.net

31 thoughts on "Explosion triggers the NEVS crisis?"

  • Hi Daniel:-)! Since you are not entirely wrong, that's true of Saab's page also made mistakes! Otherwise it would not have come so far. But GM did not understand Saab and the employees did not have the leeway they needed! When I send a horse into the race I should not tie his legs together. Before the whole SUV hipe Saab had already finished one, but it was not allowed to come !! Saab did not lack ideas but money! What many today very successful (German manufacturers) manufacturers had as well !!

    • @ Greif08: I don't want to deny that the people at GM didn't understand the people at Saab. They ruined a lot and nipped a lot of good ideas in the bud. On the other hand, the people at Saab were also totally stubborn and believed that they could continue to build cars as if there was no financial problem. They weren't interested in specifications. I just don't find it expedient if you always rail against GM when it comes to Saab. The Saab had to be "saved" by GM at all had its reasons ...
      Let's wait and see what happens.

      • Daniel! SAAB has certainly summoned his situation at that time and you are right that GM can not or should not be responsible for everything! Thanks to our dialogue, I can see that now a little more differentiated! It's probably also the rage that GM did not see or wanted to see the possibilities and potential of SAAB! And the approach to selling SAAB did not make GM like it either! Let's hope there is someone who wants to raise the treasure!

        • Let's put it this way, when a car manufacturer is taken over by GM, the tide does not necessarily turn for the better for the brand, even if it is considered financially "saved" for the time being. At Opel it was / is going similarly. You often ask yourself what they actually want with all the brands that they have in their portfolio. But of course it's true, you don't have to like GM. Unfortunately, their logo is emblazoned on all of my oil filters that are actually "original Saab" 😉

  • If it does not work now and a clever investor takes over SAAB, you should let the brand die in dignity! If politics shows no interest, grasshoppers only seek their Provit, it makes no sense! The employees are suffering and they do not deserve it!

    • The city of Trollhättan, Sweden or the Wallenbergs have / had it in their hands: At SAAB, the majority would be available for less than the expected unemployment benefits. At VW, the state of Lower Saxony has always been the largest shareholder, at Alstom the French state is leading the way, with Renault it is no different, Peugeot was “saved” with EU funds. Nothing is happening in Sweden. They prefer to dream of the post-industrial era, politics is driving BMW and jobs are disappearing in the direction of China. Every country gets what it deserves. The Wallenbergs finance the SAAB museum with a "generous" donation, after which SAAB was sold to Gangster Motors.

      • I don’t even know what that’s all about with “Gangster Motors”? Without GM, this blog wouldn't exist at all. After all, GM were the only ones who pumped money into the store in the early 90s. Otherwise Saab would be history since 1990. GM may have done a lot of things wrong, but Saab was always in their own way, an offer from Ford in 1989 was once quite generously wiped off the table. You stand with your back to the wall and still believe you are in a position to choose your savior.

        • The seriousness of GM's business policy is currently shown by the product recalls and the reasons for them. Even with a benevolent look at it, I can only call it an ugly company. You play with the lives of the customers and knowingly and years overdue wasted updates to earn a few cents more per vehicle. Hence the name Gangster Motors. It just takes more than selling Korean Kia's than Chevrolet to be successful in the premium segment. With the 9-5, GM was sure to have put together a great product. Apart from relabelling Buicks and Cadis, GM has not thought of anything since then.

        • Hello Daniel, you are so right. Only many do not want to believe that. It is sad but unfortunately true.

        • General Motors did not save anything! But eviscerated! And Ford ?? See Volvo, Jaguar, Land Rover ?? Great alternative! The Indians seem to be able to do it, a few Europeans might also be able to make something out of Saab, but never the Americans! Chinese ?! Well, we're watching!

          • Objectively, it seems to be the case that Ford has a long-term thinking management and operates differently from GM: unlike GM, it overcame the financial crisis without state aid and the companies it took over still exist today. Volvo, Jaguar and Land Rover were able to benefit from the Ford platforms and drives without being watered down and are therefore still on the market. In the meantime, GM has almost managed to kill Opel and let SAAB die with the Chevrolets. SAAB would be an investor like Ford!

          • Aha, and who then helped Saab out of a jam in the early 90s? As far as I know, nobody was interested in Saab at the time except for Ford and GM. Since they didn't want Ford in Sweden, only GM remained ... or went bankrupt

          • That GM has not managed to run a Swedish brand successfully for more than 20 years is now really clear - so it was not the right permanent investor!

            They weren't even able to prevent the end in America with their great vehicles (hodgepodge) - that they are still artificially kept alive is thanks to the American taxpayer, who had to make billions in payments to GM.

            For years there have been hardly any vehicles in the GM group that are without quirks - the current recalls are clearly led by GM - I really don't know how one could positively assess this group.

          • Hello Greif08! GM has not saved anything. But they prolonged dying. Without the takeover, Saab would have been dead for a long time. You have to talk to "old" Saab workers. With all the mistakes made under GM, the Swedes have unfortunately contributed a lot. Unfortunately.

      • Kai Johan Jiang, the main financier at NEVS, actually wanted to get started with SAAB, but did not sufficiently take into account the unreliability of his Chinese contractual partners - this risk was apparently somehow overlooked by Bergqvist + Co.

        So far, the Swedish politicians have not given Trollhättan enough when it comes to rescuing the site - good politics looks different.

        NEVS will now try to at least get the mission back in. Preparatory work has been done (company “pimped up”, qualified staff recruited, PHOENIX platform further developed) - actually a good opportunity for an investor who wants to take over the helm. Certainly, Mahindra would not only be suitable here - so a game of patience takes its course again.

  • Oh dear people, it's all like a bad “daily soap”.
    What rumors and speculation. Just sad the whole thing.
    I stick to it: We never knew anything and will never know the truth of what happened or happens at Saab / NEVS. Unfortunately.

  • This is unfortunately so common in China:

    High-ranking political comrades make decisions, sign contracts and get acclaimed. A short time later, they fall into disfavor, are sawed off and replaced by another, who thinks completely differently and sees no reason to comply with existing contracts or at least roughly follow the direction.

    I had to make this experience several times through my e-mobility work in cooperation with the Chinese….

  • VM would have at least open and timely communication.
    Now, from one to the other clashes with the press, these developments are being notified.

  • How can it be at all that contracts are worth nothing at once. If I sign a contract of sale, credit agreement, lease or whatever contract, then my contractor will always insist that I fulfill my part of the contract also, whether this company just a workshop is burned down or if another mitlerweile sits there on the executive chair. It is that the company goes bankrupt. Very good advertising for Chinese businessmen can only be said

  • The procedure of NEVS was as clear as a grasshopper: buy SAAB for about 300 Mio. Then sell 23% stake for about 330 million to the city of Qingdao. With the profit the remainders up and sell as soon as possible. This requires a manufacturing factory and possibly a product.
    Let's see if there is an investor who is interested. If there's even a chance for SAAB, then it's a complete new beginning, without the legacy of Gangster Motors, windy investors and inscrutable lawyers.

    • Well, you did not just overrun the purchase price of 300, but had other costs. With the share of Qingdao one has driven his risk to zero, but where should now come from the profit for the alleged grasshopper?

      • NEVS still has 77% of the shares. After all, a functioning work and a platform. Since Qingdao has not fulfilled its obligations, the interim costs will be left to NEVS. So a purely speculative financial investment with the intention of a quick resale. SAAB's existing customers are not present, as the communication from NEVS has shown. If SAAB still has a chance at all then with a partner who really wants to produce vehicles and get jobs.

        • An automaker in Sweden and with high production costs certainly does not want to buy anyone who would not be interested in a Swedish brand.

          And also on platforms there is no shortage. If anyone is interested in these, he would have a good chance to get these cheap from the next insolvency administrator.

          Also, I can not recognize otherwise that NEVS would have aimed at a quick sale.

          Instead of putting the next platform in the foreground and thoroughly cleaning up and decorating this "bride" for a locust sale, they only played soft tones and worked quietly and diligently on the supply chain and the resumption of the old 9-3.

          No, if Werk and Phoenix were to be speculative objects of a grasshopper, it would have behaved differently. The theory still does not shine on me.

  • China is a communist system and apparently contracts are not worth the paper on which they were written. What the rest of the world thinks about it does not matter, and that you do not care about that SAAB disaster, I remember Youngman and Co, losing face.

  • Oh, dear people, that was already apparent from the beginning!
    No marketing, no information, no functioning dealer network etc.pp. And again, a lot of people, who once again made themselves crooked for SAAB, hit the head and left scorched earth!

    According to the current state of affairs and the motto “We're tinkering a SAAB”, someone has taken a little bit of money out of their pocket and tried to sell cars almost without a back office. "Hurray, we have already sold a few in Sweden". That I don't laugh !.
    Those responsible for the "Sch ... deal" with NEVS at that time are probably already over the mountains ...

    But maybe there is still a chance to get it started with an investor / partner who knows and respects the European mentality. With the Chinbesen (no matter with whom) that will be nothing anyway. Have we seen it again?

    SAAB has finally earned a REAL opportunity with a professional partner.
    Bloody hell!

  • I had already suspected a corrupt Chinese provincial farce behind it. Unfortunately this was triggered by a tragic accident, but sooner or later the project would definitely have failed - other politicians, other “interests”!

  • So I tell you: these Chinese are slowly going to the bag!

  • That's something for the Wallenbergs: take over the factory with the supposedly ready-made new platform, the design of Gray or for my sake, the fat Castriota-burger sausage on it, a convincing development of the good four-cylinder in, finished is the 9-3W.
    And the Swedes would be back under the autonations.

    • So probably neither the platform nor the car on it is finished. And the engines would now have to be further developed into direct-injection engines, then a better exhaust gas treatment, and then there is still no work for it. And I suppose that you can derive from the H engine also no diesel.

      • Oh, you do not need diesel when good direct injection there are. A fast high-revving petrol engine with turbo makes anyway more mood than power-packed tractors.
        Thanks for the input, the “Grand Strategy” is there 🙂

  • For a start, I'm irritated by the article that an explosion involving 62 dead, 100 injured and 18.000 threatened *** was one of the worst industrial accidents of the past year. That should give you a nice picture of the Chinese industry and the standards there.

    On the other hand, it shows us the extreme political dependence of Chinese investments. Yes - the cash reserves there and the need to invest them abroad are high. But on the other hand, investments are only made where it is politically wanted at the moment. If the functionary level changes, the focus of interest may also change and the windfall is over.

    After this failure and the problems that have been leaked around us by Pang Da and Lotus Youngman past and present, I also see the planned involvement of Dong Feng very critical.

    And to be honest - I am slowly wondering whether the attachments from one short of breath owner to the next are worthy of the brand. There was a lot of vigor at Spyker, but nothing financially to support it. NEVS now also had to find out that automobile development and production quickly become very expensive. And large plants with the appropriate financial background and a well-stocked corporate shelf for certain component groups seem to show little interest. Sure - at the moment Mahindra seems interested again, but didn't they back off last time because of a price that was too high?

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