Setback in the stablebacka. NEVS adjusts the production strategy, which will have a direct impact on future employment at the former Saab factory. After the summer break, the hiring of 200 was planned for additional employees and the start of the press shop and the paint shop. It will not come to that.
The plan was to build a clean assembly plant in Tianjin, which would be supplied from Sweden with painted and partially pre-assembled bodies. The final expansion to a full-fledged factory should take place over a longer period of time.
Today, the Sweden radio reports P4 Väst a change of plans. NEVS will build a complete plant, not just an assembly plant in China. For Trollhättan, the changed strategy means fewer new jobs and less production. In this context, the schedule changes; The first NEVS electric cars based on the Saab 9-3 are not included in the 2. Quarter 2017 run off the line. There is no information on the duration of the delay and on the additional investments.
Tightened conditions in China
As a background, the changed conditions in China since the beginning of the year can apply. In order to obtain one of the coveted production licenses, the administration no longer needs the construction of an assembly plant. Volvo, as a foreign company, also had start-up problems and it took more than 1 of years to get the approval.
Targets corrected downwards
But it seems that the conditions in China have additionally aggravated for startups. The administration wants to stem the flood of new providers for electric cars and therefore screws up the technical requirements. According to this Bloomberg report, only a very small percentage of 200's new companies will have the chance to even hit the market.
At the same time, sales of electric cars are not developing as well as expected. Although the market is growing dynamically, also due to massive subsidies. But 700.00's "New Energy Vehicles" annual target for 2016 will probably not last. The China Association of Automobile Manfacturers last Friday corrected the number on 400.000 units.