Losses, liquidity worries, hardly any perspective.

Almost exactly a year ago, Mark and I visited the old Saab factory. They were very friendly to us, and we met impressive people with Saab's past. Still, by the end of the day, the mood was dim.

NEVS Tianjin Factory. Picture: NEVS

Losses of 346.000.000 €

Was it the missing sun, the approaching winter? Or was it simply the tiredness after a night on the ferry in Sweden, where I had hardly slept? It may have been our last visit to the plant, I noted at the evening revue-pass-let. What at that time was only a dark premonition, that could be actuality.

Our contact persons from that time work today for other companies. Contacts we have had over the years have retired or faced new challenges. The signs are on storm, and NEVS is still looking for long-term funding.

NEVS, the Chinese electric car startup in the Stallbacka, is burning money. Since the year 2012 the losses totaled over 346.000.000 €. Alone in the year 2016 ran around 100 million €. Nobody dares to say when NEVS could be profitable. In the 2016 annual report, which was filed with a delay of more than two months, the auditors expressed doubts about the continuation of the company over the coming 12 months.

NEVS is planning to sell New Long Ma

In an article by Dagens Industri the whole drama becomes obvious. NEVS is trying to sell the 50% stake in New Long Ma. In the Adoption in August 2016, it was predicted that the breakeven point for 2017 would be reached. There is no talk of that. Our information speaks of ongoing losses and unsatisfactory quality of production in southern China. The investment is expected to have an intrinsic value of 52 million euros, which should now be converted into liquidity.

New-Long-Ma Mini bus, NEVS electric car. Picture: NEVS

Because liquidity NEVS urgently needs. Invoices from suppliers can not be paid on time, the financing of pre-production in Tianjin is unclear. In order to fill the most urgent holes, the Chinese are planning the real estate in Trollhättan with around 84 million € hypothecate, More money should bring the entry of Didi.

The Uber rival, it was hoped, could get into Trollhättan with 500 million US dollars (426 million €). Apart from a letter of intent in June, there are no tangible results. According to one DI Interview with CEO Tilk, they are now negotiating smaller partial amounts. 25.000.000 US dollars (€ 21 million) are to flow. It is questionable whether Didi will even get on board. Rival Uber recently closed its leasing business because of excessive losses set.

The entrance of Didi is more than doubtful.

It is doubtful whether the Chinese market leader Didi will embark on a similar adventure with financing a hardware supplier. Spicy: Also a major customer Panda New Energy relies on a comparable, possibly deficient business model. It is, in his own words, fully credit-financed. The future will show just how valuable the previously non-binding orders are.

Trollhättan currently has some 750 employees and 125 consultants on its payroll. High performers continue to leave the former Saab factory. The most recent, prominent departure was Chief Technology Officer Stig Nodin. With 25 years at Saab one of the last known names from an earlier time. He remains connected as a consultant, which is nothing more than a common phrase at NEVS.

The activities are increasingly shifting to China. In Trollhättan staff are being dismantled, hired in China. Around 200 NEVS employees should be busy there. This is done under pressure from the lenders and is funded by a loan from Tianjin Bank. A credit line of 125.000.000 € tied to investment in Tianjin keeps the activities alive and provides the necessary liquidity.

To read more about the difficult development in Trollhättan, the background and the incredible gains in Sweden in the following article in Tom`s rear view mirror.

35 thoughts on "Losses, liquidity worries, hardly any perspective."

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    Good news
    New investor and customer, ddi
    And the production wants to start sooner in Thn !!!!!

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    The established manufacturers from Europe, Asia and America are slowly but surely pushing power into other drive sectors. If the announcements are implemented, we will see something new in the next two, three, four years. New approaches to sales and ownership have meanwhile been announced, implemented or further developed.
    In my opinion Tesla has to be careful that they become profitable during this time, otherwise their exclusive (market) window is gone and they get massive problems. NEVS would have had a similar time window, but has nothing to show. Even if someone wants to put money in here, I don't see a big market opportunity.

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    I just read that Wiesmann will be producing again from next year, it's a shame that SAAB has so much bad luck ...

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    NEVS?

    Those were the blenders from the beginning! Chatter and the senseless destruction of capital.
    Every toddler knows that every now and then you have to show something new in order to keep people in line.

    What did NEVS do? The huge Fanschar left left and the technology, which perhaps new was stuck in an old body. You do not have to put half a billion in the sand, even small businesses can do better and, above all, faster!

    But one thing NEVS could do was lie, that the beams bend and demonstrate the lived Dilletantism to everyone.

    Speech bubbles are far too many in the world, SAAB certainly does not deserve that, my 900er is the best proof.

    vg

    Linus

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    ... And you could go back to the rutes immediately.
    Flechtheckkörserien are finally reflected in!

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      I see it coming: THE NEW SAAB 9000 CS

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    I have a good feeling because ...

    - SAAB AB has withdrawn the naming rights from nevs

    - SAAB AB plans to start as an automotive supplier

    - nevs goes more and more towards China (it is quite possible that they are selling Trollhättan due to lack of interest)

    - The SAAB AB has so far, although they have indicated that they want to get started in 2017, DONE NOTHING!

    It is quite possible that it was a move to deny the naming rights, so as to remain the owner of the naming rights to start something under his own name

    Even if not, then someone else, someone with more competence, can take over the saab plant in Trollhättan.

    Is a theory, but one may dream: D

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      Beautiful dream! May it happen like that!

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    Since it deals with gaudy finances and the losses are so great, it is conceivable that NEVS in Sweden requests bankruptcy and in China, under another name, further attempts to work something from original planning. If it comes to it, someone can pick up the terrain cheaply (as Jan here also says) and finally with a realistic plan the inhabitants of Trollhaettan again give a prospect of better times.

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    On the subject of NEVS, I only have a saying from Werner Brösel: "Dilettantes, olé!"

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    One can only hope slowly that the project fails to NEVS and a) the Saab AB has a heart (the dream of all I think) and the area can cheaply tap and then with the trademark maybe a small car maker builds or b) at least Volvo takes over the work / rents etc., then at least come real Swedish cars from the factory.

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      That with the real Swedish cars from Volvo is not what it used to be. After all, Volvo also has a Chinese mother. The small SUVs and the large sedan are now only available at Volvo from Chinese production, and I suspect that Trent will continue to shift production to China more and more. Before 2 years I was forced to switch to Volvo due to lack of Saab replenishment. However, if this Trent continues at Volvo this is my first and last Volvo. Sure, I will not buy a Chinas swing with Volvo label. My Trent is currently heading for France.

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        One can understand in parts, but ...

        ... in France, too, the times are probably over when a relatively small, conspiratorial community went its own automotive way. The trend is towards ever larger corporations, with ever larger model ranges or even entire brand portfolios. Everyone can do everything and has everything on offer. About SUVs. And that's exactly how SAAB came under the wheels, as one of many brands in the (GM) portfolio.

        I would again wish for more and smaller brands with clear ownership. Manufacturers who concentrate on just a few models, but build them really well with a lot of dedication. It was like that everywhere in and on the automobile world. Past ! ! !

        Gone, no matter where you look. Unfortunately also in France.

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        Modern cars are global products. What you are looking for is no longer available in France. Even the 9-5 NG was a colorful mix of global components from all over the world. Today, in Europe, the taste of Chinese buyers is considered more than that of the local population, and the components are bought where the price is lowest.

        It is not without reason that the proportion of youngtimers and classics in the street scene is increasing year after year. The “world car” is not a product that meets love and enthusiasm.

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          It is exactly like that.
          In my other family, there are still two cars younger than 15 years, one of which is a company leasing cart. Cars produced worldwide or in China primarily for the taste of the Middle and Far East.
          The 9-5 NG is a GM product, designed in Rüsselsheim, worldwide gesourced, certainly a special negative example or messenger of the future (and I like it visually quite), as well as the formerly proud Swedish manufacturer "Volvo", which today in In many parts only a Chinese label comparable to "Roewe" represents.
          In my opinion, PSA is currently much more European than “both” Swedish brands combined. In this respect, I can understand the look to France, if you don't want to drive the same "premium" products as all of your neighbors ...

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    And GM still can break brands. Opel is sold to Peugeot, so far so good. But the Ampera E, the new electric car from Opel, is not sold to customers, but given at very unfavorable leasing rates without the option to take over the car at the end of time. Because a fundamentally well-designed e-car is kept away from the German market with power. Great performance GM, thanks

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      Breaking brands is one thing - of course I fully agree, especially in the case of GM.

      But what I can not understand at all is the behavior of the Swedes in terms of SAAB automobiles. Why do you let a globally established brand with big fan potential from an American corporation take off the market without countering with power and intelligence?

      In any case, my previous good opinion of SAAB AB as well as of the state Swedish administration (including, of course, the administration of the bankruptcy) has suffered considerably in recent years.

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    The most incapacitated on the market, SAAB was thrown to eat. That's when the cold coffee comes up.

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    Hi,

    an unbearable, neverending, story. Thanks to you for bringing it all together. Joy is something else, hope there is no more and I catch myself that attracts me more and more of the star from Stuttgart. But my old 900 he stays as long as I have the ability to get them, whatever it costs.

    Greetings from Erik, the NEVS Depressed.

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      hello Erik

      If you need a good car to sell again after 5-6 years, Of course The Star is tempting. But the electronic and preservation problems continue at Daimler.
      You will not have any friends for more than 7 years.
      And then you're just one of many. Whether a modern Benz the same well-being triggers when driving, as a well-preserved 9.5 is then still open.

      It has to be everything for and again!

      In terms of BAIC, the C 60, C70 and C 71 would be a great alternative for a Saab, since nothing else than a facelift.
      Unfortunately, the old Saab engines do not meet the Euro 6 emission standard, otherwise you could buy the sedan like the SUV in Europe.

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        The old Saab engines, with Trionic, create the Euro 6. BAIC offers Saab engines in the X65.

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          Yes, but why is not that possible with the limousines?
          Or. Why does BAIC only offer the SUV s in Europe?
          The engines are the same whether X 65 or C 71!

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            Limousines are not really a boom segment. The German BAIC importer is a smaller provider, with an SUV he expects more opportunities in the market.

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          There you can see again what you have in SAAB, how far ahead they were and what we unfortunately lost with this brand ...

          I would have preferred SAAB to have continued to exist with its “old” cars and “outdated” technology than to disappear from the market in the midst of a model offensive with SUVs and the new 9-5 SC before they go on sale.

          The hectic model changes and the bloated model palettes (everyone can do everything) of the other brands produce all sorts of things, just no sustainability and no really appealing cars. Apart from a few Italians (who also all get sick and disappear), SAAB was the last European suitable for everyday use who focused on a few models ...

          And with much passion.

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        On LPG it does …… !!

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    For my personal well-being with my Saab, Orio and a Saab website are much more important than the future of NEVS. What do those - except a few 9 3 pilots - have to do with our cars?

    A consultant at 6 point employees? If it's Swedish, at least a few bright minds grab a lot of money, most of which stays in the country in this way. But that brings neither Saab back, nor NEVS forward ...

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    Is bankruptcy in Sweden actually punishable?

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    One dies on installments, that's all!

    Although it sounds tough, it would be better if NEVS gives up.
    In China, there are already some electric car manufacturers and BAIC has already presented the old 9.5 as purely electric powered.
    Especially since it has been configured for the Chinese battery replacement system.
    The NEVS 9.3 would just be one of many and is not even on the market, while other manufacturers already sell their e-cars to interested customers.
    He would definitely be late for a bomb. Or even profitable

    It would really have to come a company that takes over everything again and then build something sensational new. Something that strikes like the Saab 99 eg
    It's a pity that Saab has no interest in Trollhattan anymore.

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      BAIC is a good point. How many manufacturers can build on the same brand in the same market? NEVS has no chance.

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      La voiture électrique est très fortement concurrencée, les hybrides sont certainement l'avenir, la raison est technique: on ne sait stocker l'électricité avec des batteries que pour des petites puissances. La voiture électrique est une vieille histoire, en 1900 c'était la voiture des femmes car on n'avait pas besoin de tourner la manivelle? A quand le poids lourd de 40 tonnes électrique avec 1000 km d'autonomie?

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      No dying in installments - just Chinese industrial policy with which VOLVO was able to take over the market share from SAAB. Let's see how the monkey dance continues and why the property in Trollhattan is suddenly worth EUR 85 million ...

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    had to come. As the keyword Phoenix 3 or what did it mean, it became clear that the original Phoenix platform was not electric (enough?). This was certainly not expected and it has shifted the balance sheet to heavy losses. Besides, this is tricky with the electric cars as well.

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    Perhaps one should already plan for the time after NEVS? New chance for Trollhättan and SAAB? Just a thought ...

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    Daydream mode on -> Saab AB plans to take over the Trollhättan site <- daydream mode.

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