Cash injection for the electric car Startup NEVS.

There is news from the owners of the old Saab factory. After there had been first indications of liquidity shortages, the electric car Startup NEVS now receives another injection of cash from China.

Production at NEVS. Credit: TTELA

New shareholder. Details and backgrounds unclear.

Behind the transfer of approximately 91 million € stands a company called Beijing Zhigan Shenghuo Technology, which is also a shareholder in NEVS from now on. How much and how shares have been acquired, for example through the issue of additional shares or through the departure of another shareholder, is unclear. There is no press release on the process, only the report in several Media.

The amount will not be enough to complete the Tainjin plant or to finance the start of production. But it will help over the coming months. The Chinese startup in the old Saab factory is hoping for Uber rival Didi to join as a major shareholder. A corresponding agreement is to be signed in autumn.

Important details in the local newspaper.

In the local newspaper Trollhättans was also reported by ex-CEO Bergman on profound changes. Again, there is no message to the media, although things would be important. There is only one paid article in the regional medium.

The changes in a compact form:

  • NEVS has stopped the search for a new CEO, President Stefan Tilk takes over the position of Mattias Bergman in Personal Union permanently.
  • The Tübitak Project, the development of a national car for Turkey, has been on ice for half a year and has failed.
  • The start of series production for the NEVS 9-3 EV is planned for autumn 2018. It is estimated that by that time the plant in Tianjin has been completed in the appropriate condition.
  • In the meantime, the old Saab factory is forging raw bodies and building prototypes.
  • The licensing and homologation of the electric car by the Chinese authorities should be made 2018.
  • The fact that the financial situation is not stable is confirmed to TTELA. Payments to partners and suppliers were late. The TTELA article was written prior to the announcement of the referral from China.

14 thoughts on "Cash injection for the electric car Startup NEVS."

  • The wind has turned - unfortunately! Last summer the euphoria and ambitions seemed great. Tom's report from inside the old factory was great. I still remember a sentence from an employee from R&D who said, "If we don't make it now, it's our own fault." This statement probably arose from the assumption that everything can now be done without constraints and without a GM corset. Liquidity was certainly available back then. That has apparently changed fundamentally. A real shame!
    I suspect the construction of the production in Tanjin costs much more than expected. Contrary to the old planning, the factory in Tanjin has to be upgraded to a complete factory with press shop, diamond construction and paint shop. The Chinese government wants it that way. That costs real money. Meanwhile, the factory in THT is almost silent with all machines. The executive floor of NEVS is certainly not to be envied. Maybe it was also the bad prospects for THT that made Mr. Bergman go.

    • The situation has indeed worsened. One of the problems of the company is the structure of the owners. There is no one who has the majority and NEVS is literally being wiped out between all the interest groups that just seem to glide on local interests. Production of the 9-3 electric car will take place in Tianjin (limousine) and New Long Ma plant (9-3X). The latter is chronically in deficit and it will not be enough for both locations. Meanwhile, the Swedish factory is still silent.
      In addition, NEVS is chronically weak capitalized. The funds, which make the partners free again and again, are not even enough to achieve minimal goals. That's the difference to Volvo, where a strong owner has the lead and from the outset made a low 2-digit billions of dollars available.

      • With this answer to the amount of Olaf, you leave the cat right out of the bag:
        Quote: There is no one who has the majority and NEVS is literally being wiped out between all the interest groups that just seem to glide on local interests.
        How should something “clever” ever (!) Come out ??? There is only a lot of money being burned ... and who can see through it. A job with no perspective is not really a driving force.

        • There would be more to report on what might happen in another format soon. The fact is: what happens at NEVS is not uncommon for Chinese standards. The electric car division of state-owned BAIC has more than 30 owners who are either state, parastatal, or private. Accordingly, the interests of the individual groups also have an effect there.

          • Thanks for the detailed answer Tom. I also think that it can not be so with the factory in Trollhättan. They are still doing the development work for China and then NEVS should consider whether they should not sell the factory and its inventory to someone who can do more with it. I could imagine Volvo, VW or BMW. All three have decent front-wheel drive platforms that would go with SAAB. All capital seems to have too, even if VW is struggling with investments for well-known reasons.

  • The types are unable to get into the hair tips. Sorry what happened there. How it works is shown Volvo.

    • Volvo is not as bled under Ford as SAAB under GM. It is still puzzling to me why the Swedes themselves have no guts to revive SAAB / NEVS. Buyer potential (especially current SAAB drivers worldwide) would be readily available, especially with the current appearance of other automakers.

      A solvent major investor with a good marketing department should still be successful here - but the current ownership structure now tends to speak against it.

  • Also THANK YOU for this “enlightening” article. 🙂 Even if the content is rather slow.
    It is becoming more and more difficult for me to imagine that NEVS will act worldwide at some point ...
    The NEVS will hit the market sooner. China WANTS el.-mobility. Therefore, Chinese cash injections will continue to flow ...
    Whether this mixed situation is enough for a successful independent future ... I am still curious. But without emotion.

    • The matter is completely without emotion. The time is over. Nevertheless, it could be exciting again if a potent new shareholder joins in and (finally) invests extensively.

  • Actually, you can no longer believe the NEVS troop. Something always doesn't work or just fails. Bergman once called it the largest industrial project in Sweden. I laugh myself limp ...

  • Does anyone really believe in NEVS after all these years ...

  • Thank you for the report, Tom,

    I follow like many others here for years, should I really call it development?
    The news that miner leaves Nevs was a Dejavu experience. A few years ago, the longtime top manager and SAAB watch rock (name omitted) left SAAB Spyker and after that everything went very fast. The positive news in the meantime about great products and the presentation of the new 9-3 electric vehicles just a few weeks ago are mild breezes compared to the stagnation. Nevs lets pass time. A SAAB fabrication of the highest technical standard (a few years ago) may fall behind. All major manufacturers of automobiles are working with maximum energy on alternative concepts. If Nevs came to the market today with the two cars presented, it would be hard enough to stand up to the competition. A lot will happen in one year and I'm afraid that it will be too late for NEVS.

    Can not an end be set anyway? SAAB can only be revived if a Solvent market participant has a meaningful use. Chances are low. NEVS finally provides appropriate vehicles. Chances too low. Until today I hope that finally something tangible will come out. But I find it increasingly difficult to get excited about the SAAB heritage. After all, my old SAABS still make me happy every day.

    Greetings from the Erik

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