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 in the amount of 91 million € could have solved the worst problems. But the money has not arrived, or only partly, in Sweden. 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 now. One shareholder has left. A second has problems with the payment. The crisis is intensifying in a phase of very high capital requirements. Meanwhile, the competition invests and wants to flood the market with electric cars. And even the negotiations on the entry of Uber rival Didi as a major shareholder do not come to a conclusion. Originally planned for the end of the summer break, NEVS now hopes to report execution 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.

Former CEO Bergman once described in exuberance as the "largest industry project in Sweden" startup faces major problems. Whether it will have any future in Sweden, the next weeks will show.

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

  • 19. September 2017 at 11: 37 AM
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    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.

  • 19. September 2017 at 11: 56 AM
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    It would only make you laugh if it did not affect our Trollhättan. Such a bumbling management is rare. 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 focused on two promising models. I know what many are thinking: "is Björn crazy?" Maybe. But one may still dream. Or?

    • 19. September 2017 at 12: 03 PM
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      Dreams have to be even! And "our Trollhättan" I find a great phrase. I am lending it to me on occasion

      • 19. September 2017 at 5: 59 PM
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        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.

    • 19. September 2017 at 4: 45 PM
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      Hello Björn, I've had the dream for several years. I really do not want to get used to the thought of never getting anything out of our trollhatta. But bumbling management, there are now plenty of, for example, at Bombardier, BER, etc.

      • 19. September 2017 at 5: 54 PM
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        Hello Marco. Of course, you are right. We are surrounded more and more by stumpers, yes-men, and people without backbones. That is so (also politically) so wanted. But there are enough exceptions that make business meaningful and sustainable. I would have wished that the Swedish state would at least have secured the reconstruction. Good managers could have made Saab a small and productive company. But look at the (formerly) well-known Swedish companies. I do not understand how Sweden lets its "knoff hoff" so in front of the wall.
        The argument "globalization" is supposed to explain a lot. But that's just an excuse.
        I repeat myself. But cherish and care for your Saabs. I just bought out of defiance a convertible (last facelift). I will always drive Saab while there are mobile Saabs.

        • 19. September 2017 at 10: 34 PM
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          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 from the recent Saab story every day at work and in our group throughout Germany. Since one does not understand the world nearly daily and we were in our enterprise almost over 160 years (above all without the enterprise) very successfully. For now about 5 years, it is incredibly fast downhill, because "professionals" in appropriate positions in the group leadership VERY questionable decisions. In 2 years, 170 would be a jubilee year and from today's point of view, it seems impossible that the operation still exists. That's what the future looks like
          To get back to Saab. Even if I have a 9³ TTID, I will drive, nurture and care for it with BIGGEST FERUDE, as long as Father-State allows me to do it !!! Yes exactly
          Greetings from Lusatia
          Marco

  • 19. September 2017 at 12: 07 PM
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    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 then you venture a fresh start in the Far North ... maybe with a retro version of an 900? Looking at the IAA, it seems to be in vogue to present concepts for previously successful models ...

  • 19. September 2017 at 1: 57 PM
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    Why would foreign companies invest in China?
    That can not be true

    • 19. September 2017 at 3: 46 PM
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      It's real! A problem for all Chinese companys to invest outside China!

  • 19. September 2017 at 5: 03 PM
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    One can really be glad that the naming rights have been withdrawn in order to avert further damage from the Saab brand. Saab had many downs during his lifetime. This development process of NEVS was evidently recognized early enough by Saab AB. This up and down with the current owner is a single tragedy. I'm currently not a fan of electric vehicles, as the range is unacceptable and the infrastructure is not yet fit and Saab as an electric car ... ..never, but that's my personal attitude. Times presumed news goes down the drain, I dare to doubt that a new investor finds that takes over the aging plant in order to build cars there. Saab has always been a niche brand for lateral thinkers and I do not think this brand is experiencing a revival even though it deserves it.
    Look it up, a satisfied Saab 9-3 II convertible driver.
    Regards Ralf

  • 19. September 2017 at 6: 42 PM
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    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

    • 20. September 2017 at 10: 58 AM
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      There's nothing left to buy (or should) ...
      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.

    • 20. September 2017 at 12: 12 PM
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      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.

  • 20. September 2017 at 10: 13 AM
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    The positive business card are the old long-lasting, and newer still SAABautos above the average!

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

  • 20. September 2017 at 11: 27 AM
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    The Swedes are dealing with the SAAB car industry very strangely. Already SAAB AB did not have the guts to expand and keep alive an internationally recognized and valued brand - they divorced themselves completely from the car division (sale to GM) nearly 20 years ago.

    After the failure of the Americans, the Swedish state and its great insolvency administrators were completely overwhelmed - the preliminary result under NEVS need not be commented on. But maybe they will get the turn - this should finally crystallize within the coming months.

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

  • 20. September 2017 at 2: 31 PM
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    What a sad state of affairs. But, certainly not a surprise. Within months of NEVS acquiring SAAB is SAAB as we knew it. They had an ill advised plan to manufacture cars in China. They have no idea of ​​the value of SAAB as a brand beloved by many in 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 been 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 their work force wither away, their dealership network, their reputation, and all else. A benevolent angel wants to step into and rescue SAAB from such an ignominious end, but so unlikely to be true.

  • 22. September 2017 at 9: 17 AM
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    At least the Chinese have managed to get rid of the VOLVO competitor SAAB ... that was enough - not more!

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