Paper can not defend itself when it is printed. Which is why some say that some things are not worth the paper they were printed on. Is the NEVS Reconstruction Plan worth it?

Experimental Workshop NEVS © 2014
Experimental Workshop NEVS © 2014

Michèl has already written about it; Here are some thoughts from my point of view. Essentially, there are two options that are under discussion.

OEM Track Plan A - Master Plan

A large OEM joins NEVS as the new major shareholder holding a maximum of 80% of the shares. Kai Johan Jiang's National Modern Energy Holding will hold at least 20%. Together with another manufacturer, NEVS operates a development company in which both companies have a half stake. The new company incorporates the existing research and development facilities and reduces development costs. NEVS plans to bring new models on the Phoenix platform 4, ranging from compact cars to the size of the Saab 9-5.

Complementary plan - plan B

Once the OEM Track, or Plan A, has been completed, NEVS starts its own OEM business under the name NEVS Industrial Services to develop and produce vehicles for other manufacturers. If plan A fails, the reconstruction plan provides that NEVS is able to survive as a pure contract manufacturer and developer. Production for several manufacturers could then be started in 2016-shift operation in 1; the maximum capacity is 200.000 vehicles per year. The plant in Trollhättan is one of the most cost-effective in Europe, and at the same time one of the most flexible.

How close to reality does the plan work?

The sales negotiations drag on from month to month; if you take a closer look, it is clear why. For what reason should a new major shareholder grant the previous owners at least 20% of the shares in order to secure their influence and power? In order to turn what is available in Trollhättan into a flourishing brand, billions are required. Kai Johan Jiang failed to provide double-digit million values. It's tough, but he's not an equal partner.

Mahindra off board?

Since the beginning of the week, people in Trollhättan have been saying that Mahindra has ended the talks or is at least about to disembark. There is of course no confirmation as to whether the NEVS Mahindra Connection was really cut. Just as there was never any official confirmation for negotiations.

However, the probability of failure of the negotiations is higher than the opposite. Since the talks became known, there were obviously irreconcilable differences regarding the value of the investments. And NEVS has hinted in the last few days that things are not going as expected.

And the external impact of NEVS is currently giving a disastrous picture. Gone are the days when you enjoyed “puppy protection”. The GT Expressen, which is not NEVS-friendly, brought the story about a previous employee, who was exceptionally well paid, with a background of 155 employees who were disposed of in a hurry.

2 million in 18 months.

Karl-Erling Trogen
Karl-Erling Trogen

Ex-Volvo man Karl-Erling Trogen did good business with NEVS. For 18 months - until January 2014 - he was a board member and advisor at NEVS. During this time, 18 million Swedish kronor, almost € 2 million, flowed to his company “Elne Consulting AB”.

An unusually high remuneration for a medium-sized company with no recognizable business activity. The question in Sweden is therefore: what for and where did the money come from? Did it come from NEVS or from China? Neither Trogen nor Kai Johan Jiang wanted to comment. In an email to GT Expressen, Jiang announced “eI just do not have time to give interviews and I'm busy with NEVS and its companies in China".

The Trogen story is not well received. Even personalities who have previously campaigned for NEVS are distancing themselves. Fredrik Sidahl from the Association of the Swedish Suppliers Industry considers the 1 million crowns a month to be "not surprising”And representative of the whole NEVS mess.

The plan B.

If the NEVS Mahindra connection fails, Plan B will come. NEVS will survive as a developer and contract manufacturer. With this, the company is competing against the giant Magna. For me, quite frankly, not a viable plan. At least not in the long run. For the next few years, it is possible to raise funds through the marketing of the Phoenix platform. Apparently it is close to being able to deliver a product. And then?

Companies like Karmann have got into trouble because contract manufacturing is tough business with low margins. Also because they were too small to withstand competitive pressure in the long term. Why should NEVS, whose management does not come from the auto industry, be successful?

The reconstruction plan includes 47 pages. Many colorful graphics, no concrete numbers. No names of possible partners, no binding declarations of intent. Nevertheless, lawyer Lars-Eric Gustafsson sees good chances for the survival of NEVS. He recommends the reconstruction to the 29. Continue on November. Presumably, he gets through with the creditors and in court. For me, the plan is just one thing: paper.

18 thoughts on "Paper"

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    I never realized why NEVS was granted the reconstruction. There are obvious facts:

    1. The legal situation is now so confusing that without bankruptcy a fresh start is not an option for an investor. In fact, it's extremely difficult to figure out what's left of valuable assets.
    There is a factory already sold and leased back by VM, which some local real estate investors want to make a profit on, the trademark rights are gone, potential products for a transitional period are loaded with licenses, no longer marketable and obsolete, the development company is outgesourced to a joint venture, etc. etc. Since there are only fragments of the whole company available, which can only very, if at all, put together again to a meaningful whole.

    It is also not to be overlooked that NEVS is a windy construction: NME Holdings Ltd. is the 78% owner of Nevs. The company was founded in 2004 by owner Kai Johan Jiang. It is registered in the British Virgin Islands and managed from Hong Kong. NME Holdings is the owner of State Holdings, a Beijing based enterprise which has pioneered development of renewable, clean energy in China.

    I would also keep my fingers off it.

    2. From the very beginning, NEVS has been acting like a financial investor. An industrial vision was missing from the start. It was about selling the remaining assets from the time of VM profitable. That's with the share of 22% for almost the same price for which one bought 100% to a Chinese city, also succeeded. But that was also the only official act in which NEVS was successful.
    Where does the billions, which are necessary for the development of marketable products and a resumption of automobile production are necessary, come to me not. Why NEVS wants to stay involved with 20% in a future company, not even. There is no added value. One wants to let others work again and then make a checkout.
    That's why the 2. Time: It is understandable, if interested parties keep their hands off this time bomb and this windy company construct.

    The progress in the negotiations, which was announced at the end of August, has also not arrived. Any time delay only increases the damage.

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    Saab is history and remains history. Let us take care of our artifacts and no longer worry about the money deflagration in Sweden.

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    What does all this really have to do with SAAB and how long should this suffering still be? We are moving away from car production of our beloved brand.

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      I hope that the reconstruction will be stopped.

      If these “air numbers” are continued, there will be no new SAAB automobiles, nor will there be permanent contract manufacturing for other manufacturers - for which manufacturers actually? With the exception of China, global sales of everyday cars are likely to shrink, and NEVS is not needed for the Chinese market itself!

      Unfortunately, even if the reconstruction were aborted, the bankruptcy of NEVS would not occur immediately afterwards, because allegedly one receives several million for the sale of the PHOENIX platform. The slow death in Trollhättan is likely to continue for the time being - but by breaking off the reconstruction, the court could make it clear that NEVS is declared unsuitable for finding a permanent solution!

      If Mahindra actually does not show any guts again (similar to the sales negotiations of Jaguar), this group would have disqualified itself.

      The court as well as a company willing to buy should actually be superior to these dreamers at NEVS and be able to usher in a more promising future - the whole thing, of course, with new SAAB models and not with any imaginary contract production!

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    It is always spoken of the Phoenix platfform as a healing charm, but that is no longer dewy?

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    'M curious whether there are new at the 8 October of the no longer existing SAAB name rights.
    My guess is that you at the 8. wiedermal hears more vague statements than real news.

  • blank Page 28 - if Plan A succeeds ... Pure theory ...
    Let's see what the 8.10 is. brings. Then yes, cards must be put on the table. Let's just assume that no investor wants to throw money out the window, just because the name Saab has such a fine reputation. And that no one printed page by page paper, because that's so funny, but someone thinks: Should work! (The very-very optimistic variant, admitted

    NEVS and their various negotiating partners seem to have one thing on their radar: With just one model with one engine and one body shape (the 9-3 with the far too thirsty gasoline engine with the notchback shape, which is unpopular in Europe), they won't win a flower pot in the long run. You think about a 9-2, 9-2x, a 9-3 also known as a “super convertible”, a 9-4x and a 9-5: All shapes and sizes. The MINI or VW system - or the Renault Smart Mercedes variant: serve as many tastes and wallets as possible on one platform. And that with various petrol / diesel hybrid e-models. Because the market is gradually developing there. This idea is not completely gaga. The only question is: Is there more space for a niche brand besides a Citroen DS5 or Jaguar XE to stink against the off-the-shelf goods a la BMW 3 Series, Audi A4 and Mercedes C-Class or VW Passat, Ford Mono and Opel Insignia? Should it really work, even with a lot of money from the Far East?

    For my part, I unfortunately had to get rid of my Saab a while ago - too often too expensive in the workshop - and now drive a BMW because unfortunately no 9-5NG SC was built anymore. For me, Saab is not what is on the doorstep, but what is currently being negotiated in Sweden.

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    General call!
    Buy (as long as it is still used) the book by Rolf Bleeker “The Spirit Of SAAB - more than a car”
    The best memorandum for our brand.

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    And don't forget - nobody, neither VM nor KJ, etc. have lost money here - on the contrary - the PERSONAL bags have grown….

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      Really ? Are there any more details ...? I would be interested! How did they ultimately finance it all?

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        Jens B Nordström's book claims that VM did not go empty-handed. At KJJ the final bill is still pending.

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    With such a paper you can seriously get no reconstruction! Ridiculous. That would have to blow the anger of every small company. Of course, more and more SAAB fans will have to take a new brand (e.g. Volvo). You won't get past reality after so many years of patchwork.
    October 8th is the end point. Anything else would be a joke. The credibility is long gone. In any case, I don't want a SAAB at any price. Technical progress is now flying past our brand. Phoenix doesn't save anything anymore. Unfortunately ! The other brands have no deep sleep.

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    Do not see a serious plan here. I'm just curious if you can get away with it.
    Let's listen to the 8. October.

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    Plan B would in fact roughly correspond to Magna Steyr's business model. That NEVS, to put it bluntly, could become a serious competitor of Magna Steyr out of the blue (which is an essential prerequisite for survival), is about as likely as NEVS 'original intention, To become one of the leading manufacturers of electric vehicles and practically out of nowhere (also here: because you could no longer build on the know-how that was once available at SAAB or the former partnerships and patents and the like) a serious competitor of the meanwhile established and to become leading manufacturers such as Tesla, BMW, etc. in the electric vehicle segment ...

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      Plan B is about getting something out of the Phoenix platform, apparently there is a customer who pays for it. The sticking point in both concepts is the money you need to invest to establish yourself. How NEVS wants to do this is not revealed.

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    Kai Johan wants to get his capital out again with all means - if he doesn't already have it - or still do good business with the plant ... I can't see any entrepreneurial activity here, just brazen speculation ... is his right, but then it will be Will there be more left than the smoking ruins of an automobile factory? Many former SAAB customers have switched to Volvo - beautiful cars, but no SAABs - one man's suffering, the other's joy - the SAAB's gap is still open, no manufacturer fills it! Possibly. was the Volvo manager there to reassure the banks? I can not believe in a "to-death-renovation" from SAAB in favor of Volvo! Kai Johan would do well to take the money offered and leave the field to others. For every form of change of course he needs money, which he doesn't have! And the new concept will not work again, because he simply has no idea about automobile construction ... even external consultants will not help ...

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    That's right ... paper is patient you can print on it however you want ... if you do it right it always looks good ... but whether in the foreseeable future Saabinen will run off the tape again ??? Unfortunately, it doesn't look like it 🙁 now everything revolves around getting money with things that you already have Phoenix platform blah blah blah but writing numbers while being productive nobody thinks about that ...

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    Perhaps I am wrong - but I think that the signs of a bankruptcy delay can be seen more and more clearly.

    Instead of ensuring that the reconstruction is extended, the lawyer appointed should better look out for a possible takeover candidate for the plant - this candidate should also have what it takes to get the brand name (because NEVS will in all probability no longer be this hurdle create).

    We as SAAB aficionados would not expect anything at all in a plan B which is currently emerging (contract manufacturing for other manufacturers).

    The possibility for SAAB replenishment is more likely if NEVS goes bankrupt and then a successor (M&M or another company with mum) rebuilds the brand - because NEVS as a contract manufacturer will not be able to maintain itself in the market for long!

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