Liquidity crisis and problems at NEVS continue.

The Chinese electric car startup in the old Saab factory is still struggling with problems. The bottlenecks of liquidity continue, the entry of a new major shareholder is delayed. And the future in the stablebacka does not look rosy at the moment.

NEVS. Companies in crisis.

The crisis began in the summer 2016

The crisis had already started last summer. Teamun left the circle of NEVS shareholders. This was not published, silence prevailed outside. According to our unofficial information, the shareholder did not fulfill financial commitments to NEVS. A big problem for the company. Because the capital requirement is enormous.

Since then, liquidity has deteriorated from month to month. Bills could not be paid on time, external consultants were no longer in the summer contract renewal. As a further setback, top performers left the company. For months, the Stallbacka has been running a strict austerity program.

In August 2017, the entry of a new shareholder was announced, combined with a capital injection. Here, too, everything is in the near. There was no press release, only one note in the local newspaper. The backgrounds of the newcomer? Not to be clarified. At Beijing Zhigan Shenghuo Technology, neither the owner nor the purpose of the business is to be determined. Equally unclear is the amount of shares that are to be taken over.

If they are taken over ... The capital injection of € 91 million could have solved the worst problems. But the money has not yet reached Sweden, or only partially. As a reason nennt Interview with NEVS CEO Stefan Tilk Problems transferring funds to Europe. What can be possible, because the administration in Beijing has repeatedly tightened the guidelines for foreign exchange management in recent years.

Negotiations with Didi are delayed

The situation is tense and has been for months. One shareholder has resigned. Another has problems with the payment. The crisis intensifies in a phase with very high capital requirements. Meanwhile, the competition is investing and wants to flood the market with electric cars. And negotiations about the entry of Uber rival Didi as a major shareholder are not coming to a conclusion either. Originally planned for the end of the summer break, NEVS now hopes to be able to report completion in the first week of October.

The situation seems grotesque. In China, NEVS is training staff, in Sweden it could now be about existence. The balance after 5 years is bleak. The personal bloodletting persists, the Tübitak project for the Turkish electric car has failed. Even contract manufacturing in the former Saab plant did not happen. In addition to the rental of test facilities and the production of body parts are hardly generated revenue. There is no sign of vehicle production in Sweden. And that the NEVS electric cars should have the status of series maturity, may be considered with some skepticism.

The startup, once exuberantly referred to as the “largest industrial project in Sweden” by ex-CEO Bergman, faces major problems. The next few weeks will show whether there will be any future in Sweden.

18 thoughts on "Liquidity crisis and problems at NEVS continue."

  • At least the Chinese have managed to get rid of the VOLVO competitor SAAB ... that was enough - nothing more!

  • What a sad state of affairs. But, certainly not a surprise. Within months of NEVS acquiring SAAB is evident that these people had no idea or interest in maintaining SAAB as we knew it. They had an ill advised plan to manufacture electric cars based on shaky financial promised from a city in China. They had no idea of ​​the value of SAAB as a brand beloved by many all over the world including a heavy presence in North America (and I apologize for living in a country with an insane and infantile leader). They could easily have resumed production and continued in the direction set by Victor Muller while doing research and development of electric vehicles. But they let the factory and the work force wither away, lost their dealership network, their reputation, and all else. It's wonderful to maintain a dream that this time a benevolent angel will step in and rescue SAAB from such an ignominious end, but so unlikely to be true.

  • I also dream about that, although I know that it will not be, and certainly not before China is out again:
    Saab aircraft takes over the factory with state guarantees, presses for the da
    https://i2.wp.com/saabblog.net/wp-content/uploads/2013/02/2014-Saab-9-3.jpg (thanks Tom)
    and then offers as finally again Swedish carmaker the new 9-3 with all body shapes as electric, hybrid or only with the magnificent 2.0 Turbo.
    As a concession for our always real-life-less able youth with their smartphone umbilical cord then an electronic chauffeur is integrated in God's name, which can be ordered by app.

  • The Swedes treat the SAAB automotive division in a very strange way. Even the SAAB AB did not have enough guts to develop an internationally known and valued brand and thus keep it alive - they completely parted with the auto division almost 20 years ago (sale to GM).

    After the failure of the Americans, the Swedish state and its great insolvency administrators were also completely overwhelmed - the preliminary result under NEVS does not really need to be commented on. But maybe they'll get the curve - this should finally crystallize out within the next few months.

    The desire for a new investor, who ties in with the SAAB AB and then does everything right, I think for reverie.

  • There is nothing left that you could (or should) acquire ...
    The train left!

    And how long would a comeback take? And would that have anything to do with our (old) SAABs?

    No thanks, I like to renounce this dream and on NEVS too.

  • The positive business card are the old long-lasting, and newer still SAABautos above the average!

    My dream would be the money comes from Apple. Mr. Wiedeking is the boss and innovative, chic iSAAB tumble off the production line in Trollhättan. ... and after 10 years GM is taken over!

  • Hello Björn, you speak directly from my thoughts. My hope was also that the state / government / parties would realize that one of the most important raw materials, the existing knowledge, will not just be given. But reality has shown that experience and knowledge in today's world does not seem to be worth much. On the other hand, it would have been extremely difficult to keep a small brand on the market in this global madness.
    Unfortunately, I experience a lot of recent Saab history every day at work and with us in the group throughout Germany. You don't understand the world almost every day and we have been very successful in our company for almost 160 years (especially without the group). But for about 5 years now it has been going downhill incredibly quickly, because “experts” in corresponding positions in the corporate management make VERY questionable decisions. In 2 years it would be the 170 year anniversary and from today's perspective it seems impossible that the company will still exist. This is what the future looks like 🙁
    To come back to Saab. Even if I have a 9³ TTID, I will drive it with GREATER FERUDE, as long as my father-state allows me. Yes exactly 🙂
    Greetings from Lusatia
    Marco

  • As stupid as that sounds but bankruptcy could be good for a Saab comeback. So a smart entrepreneur could acquire the bankruptcy estate for a small symbolic amount and revive it with state guarantees Saab.
    But this is only feasible with a sustainable concept. The company would have to be a small and manageable company that wants to serve a clientele that does not want to give in to the mainstream. But unfortunately I see no will in the continuation of a sustainable vehicle brand. And to be honest, the reputation of Saab and its management is not exactly a positive business card. Unfortunately

  • Hello Tom
    The dream would not have to stay a dream. Of course it's hard to implement, but not impossible.
    The formulation can be borrowed.

  • Hello Marco. Of course, you are right. We are surrounded more and more by bunglers, yes-men, and people without backbones. It is wanted that way (also politically). But there are enough exceptions that lead companies sensibly and sustainably. I would have liked that the Swedish state would at least have secured the reconstruction. Good managers could have turned Saab into a small and productive company. But look at the (formerly) well-known Swedish companies. I don't understand how Sweden lets its "knoff hoff" hit the wall like that.
    The argument “globalization” is supposed to explain a lot. But it's just an excuse.
    I repeat myself. But cherish and care for your Saabs. I just bought a convertible (last facelift) out of spite. I will always drive Saab as long as there are still drivable Saabs.

  • You can be really happy that the naming rights have been withdrawn to prevent further damage to the Saab brand. Saab had many descents during his lifetime. This NEVS development process was apparently recognized early enough by Saab AB. This ups and downs with the current owner is a tragedy. At the moment I'm not a fan of electric vehicles because the range is unacceptable and the infrastructure is not yet suitable and Saab as an electric car… ..never, but that's my personal attitude. Sometimes suspected news is going down the drain, I dare to doubt that there will be a new investor who will take over this aging plant to build cars there. Saab has always been a niche brand for lateral thinkers and I don't think this brand will experience a revival, although it deserves it.
    Look it up, a satisfied Saab 9-3 II convertible driver.
    Regards Ralf

  • Hello Björn, I've had this dream for a few years. I really don't want to and will not get used to the thought> never to get anything from "our Trollhattan" again <. But unfortunately there are now plenty of bungling managements, for example at Bombardier, BER, etc. 🙁

  • It's real! A problem for all Chinese companys to invest outside China!

  • Why would foreign companies invest in China if they can't use the profit from selling goods there or making business with Chinese companies
    That can't be true

  • After 5 years such a result? Slowly the disappointment is growing. At the beginning I thought that whole could be interesting, (even though I personally do not think much of e-cars) I hoped that in the near future you will see the heritage of Saab on the streets again. But as ?? But the Chinese seem to have quickly lost the desire for their new toy.

    Since I hope almost the NEVS bankruptcy goes, the factory is free again and the last remaining SAAB Group intervenes. The naming rights are secured. The longer the money problems of NEVS persist, the sooner I hope that there is something moving in that direction. In case of bankruptcy, the work would be a bit cheaper than before 5 years.

    Maybe you will then dare to start over in the far north ... maybe with a retro version of a 900? If you look at the IAA, it seems to be the trend to present concepts for previously successful models ...

  • Dreams even have to be! And I think “our Trollhättan” is a great phrase. I borrow them when I get the chance 😉

  • It would all be laughable if it didn't concern our Trollhättan. You seldom find such bumbling management. Fortunately, since the name SAAB is not in the hands of Nevs, it would be perfect to re-launch the brand with German and Swedish management. A small company that focuses on two promising models. I know what many think now: “Is Björn crazy?” Might be. But you can still dream. Or?

  • Thanks for the article! That's exciting and dramatic. It seems that it is coming to an end after 5 years. Why would someone get in there and continue to burn money? After all, there is a factory for sale. Maybe a real manufacturer is beating me, I actually have enough of amateurs.

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