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.
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.
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.