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
The general conditions that have changed in China since the beginning of the year can serve as a background. In order to obtain one of the coveted production licenses, the administration is no longer sufficient to build an assembly plant. Volvo, as a foreign company, also had corresponding start-up problems, and it took more than a year to get the relevant approval in their hands.
Targets corrected downwards
But it seems that the framework conditions in China for startups have tightened even more. The administration would like to stem the flood of new providers for electric cars and for this reason is increasing the technical requirements. According to this Bloomberg report, only a very small percentage of the approximately 200 new companies will have the chance to even come onto the market.
At the same time, sales of electric cars are not developing as well as expected. The market is growing dynamically, also due to massive subsidies. But the annual target of 700.00 “New Energy Vehicles” in 2016 is unlikely to be met. The China Association of Automobile Manufacturers corrected the number to 400.000 units last Friday.