NEVS looking for investors for the time after Evergrande

NEVS claims the company has the 9 lives of a cat. It will be seen in the coming months whether this is true. There have been enough difficult situations since 2012, and the Evergande crisis could be the greatest challenge of all. It is true that through the sale of the "Meneko“Shares financial leeway that could be sufficient for several months. Nevertheless, as a preventive measure, the Stallbacka assumes that Evergrande Auto will not be able to survive the crisis. And prepare for the time after that.

NEVS Trollhättan plant, seen from the airfield
NEVS Trollhättan plant, seen from the airfield

Talks with investors

NEVS has been holding talks with potential new owners and investors for some time, as CEO Stefan Tilk did in an interview Bloomberg reported. He has not yet given any names, he is referring to confidentiality agreements. He is doing what he would have wanted to do for a long time, and what is now being accelerated by the Evergrande crisis, says Tilk.

His strategy is not just aimed at changing ownership. It is also about the financing of projects and it becomes clear that NEVS would like to stand on its own two feet in the future.

Assets of NEVS

NEVS not only owns the extensive Saab legacies in the Stallbacka. A battery factory could be built there, a long-cherished plan. The assets also include a stake in the sports car manufacturer Koenigsegg. At least as a hope value you can book the possible contract production for Sono Motors. It would bring jobs and the longed-for role as a contract manufacturer to Trollhättan.

The plant in Tianjin also still belongs to NEVS and with it the valuable production license. Now it is understandable why Evergrande Auto has all activities in Tianjin bundles and withdrawing workers and machines from other factories.

NEVS Tianjin Plant (Photo Credit NEVS)
NEVS Tianjin Plant (Photo Credit NEVS)

Key role for Evergrande

NEVS plays a crucial role in the survival of the electric car investment. The other Evergrande factories are under construction, or almost finished. A production license, which can only be obtained in China through a lengthy bureaucratic process, is unlikely to have been granted to any of these factories. And, in the current situation, not even got it.

The key role of this license is trump card and difficulty rolled into one. It makes NEVS valuable and indispensable for Evergrande in the current situation. Letting go of the company would mean the failure of Hengchi's plans, at least in the medium term. But the sale could wash much-needed capital into empty Chinese coffers.

5 thoughts on "NEVS looking for investors for the time after Evergrande"

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    PS
    If Evergrande bundles personnel and tools in Tianjin, that speaks against a sale, doesn't it?
    The work and license could even be more attractive as a blank slate for other manufacturers and brands. Blank paper is more valuable than waste paper.
    Who knows what else we will experience there?

    Capital and know-how are volatile substances. If the CCP exaggerates the hurdles in China, the logical consequence is actually manufacturing outside the PR. That would be a reversal of the familiar and it might be even more exciting than it already is ...

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      It's a high level game of poker. With an uncertain outcome.

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    The sale is likely to be just a drop in Evergrande's sea of ​​debt. The type of financing for the construction projects and the amount of debt do not make sense to me. Unlike in Germany, where the buyers of turnkey apartments or houses pay for the project step by step, i.e. for completed partial services, it said here that the Chinese buyer pays everything in advance. As in Germany, the projects should not be financed by the project executing agency via credit. Where does the debt come from? Half-finished projects shouldn't be because they are paid for by the customer, and Evergrande doesn't get any more money when they are finished.

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    You can only keep your fingers crossed for NEVS! For a time in China and with a better owner!

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    Unexpected trumps

    This is exciting. NEVS apparently has bad cards and still has a good hand, if I understand correctly?

    I am not familiar with card games, just know that in poker or skat there is also the possibility of winning with a "weak" hand. “Null Hand” and “Null Ouvert” are still dark in my memory from the long break in the 7th school year from Skat in winter. Is that a suitable analogy?

    If that were the case, I would be happy for Trollhättan. You have to have a pig sometimes ...

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