The end of an era in the Stallbacka and the sale of NEVS
While giving up does not seem to be an issue at Evergrande Auto, the sales pitches for NEVS are continuing. At the same time, an era is ending in Sweden. The company tidies up in the Stallbacka and says goodbye to the inventory that is no longer needed for the future. And Sono Motors tests the Sion on the test stands at the development center.
Sale of NEVS
The matter is delicate. NEVS has hopes for the survival of Evergrande Auto (HK 0708), at the same time preparing for the possible separation. The news agency to Reuters continues to report ongoing discussions with future investors or new owners.
The possible valuation of NEVS, the equivalent of € 862 million, raises questions. If the negotiations only revolve around the properties in Stallbacka and the business activities in Sweden, then it appears to be over the top. If you add the stake in Koenigsegg, the number would look realistic. Adding the Tianjin plant plus the existing production license would be too low.
Especially since it doesn't seem realistic that Evergrande would do without Tianjin. Production is only possible in this plant; it is indispensable for the start of production. The question arises, what exactly should be sold?
end of an era
NEVS cleans up and sells parts of the production systems, mostly industrial robots from ABB and Fanuc. The oldest robot that has one Auction house came to Stallbacka in 1996 and 97 with the launch of the Saab 9-5 OG.
With the great wave of layoffs that began in 2000, more robots were added, and they were also dismantled. Just like parts of the production line on which NEVS built the last Saab 2014-9 in 3. The irrevocable end of an era that began late and cautiously at Saab. Automation only moved into the plant with the 9000 and the support of the Fiat group. At that time, the Italians were considered to be world leaders in terms of production efficiency.
In Sweden people were only too happy to accept help. Because before that, the 900 OG was built with too much manpower. A circumstance that almost led to the brand being canceled.
Sono Motors tests in Trollhättan
NEVS creates space for the future. The old robots are no longer needed; whoever wants to produce in the factory will insist on modern systems. In 2023, the solar electric car from Sono Motors is to roll out of the former Saab factory into the world. With a three-year delay, which might already be too late, you can see the speed with which the market is changing.
Hey Sverige. pic.twitter.com/TxDm3f3T98
- Sono Motors (@SonoMotors) October 14, 2021
A team from Sono Motors has been in Trollhättan for a few days and is testing on the test benches. Production is planned to begin in around a year, and the city on Göta Älv would be back in the circle of car manufacturers.
15 thoughts on "The end of an era in the Stallbacka and the sale of NEVS"
The first electric cars are now appearing in the Freundeskreis. The friends buy what is available from Korea and France. No one accepts eternal delivery times for a cheap plastic ID at a VW premium price. There's a MG agent nearby (hello Tom!). He can also deliver a lot of electric cars with good equipment and good quality. Immediately and cheaply. A work colleague is currently calculating, I think he will order.
In 2022, more Chinese will come with good and inexpensive and Tesla will spit out half a million Stromer every year in Grünheide.
Does anyone believe in a concept that might be built in Trollhättan in 2023, that you might get at some point when the list of pre-orders has been processed?
These are daydreams. Sono Motors would have had the big moment in 2020, also in 2021. In two years' time the electric car will be so mainstream that they won't have a chance anymore.
Nice cue. I think there would also be room for a car brand outside the mainstream from 2023, for EVs that do things differently in terms of design and technology ...
You just have to really want to and be able to do it. At Sono Motors, I am missing a clear signal that I am a serious car manufacturer and that I want to be measured in terms of quantities.
In marketing, Sono envisions how many people (up to 10) should rather share a Sion than buy it.
A brand with models (plural) apart from pompous and multi-colored EV would definitely have its place on the market. Why not at least sketch something on paper next to the Sion and put it in the shop window of the upcoming Sonos?
Maybe the platform will provide something?
There is no unmistakable signal to Sonos that they really want to build (and sell) cars. The loss of trust and interest is homemade and Sono has placed the option of sharing so much in the foreground that no buyer can show more ownership pride. If the Sion did come, after 2023 and with this image it would have a hard time finding buyers outside the existing community. Too bad.
Some time ago there was this signal that there could be more than just the Sion. How specific that is, I have to leave it open. I'm not close enough.
Generally they are right. You can bring a new product plus service onto the market, which then decides whether it will be accepted. At Sono Motors everything is very ideological. Suitable for the speech bubbles of a certain political direction that appears patronizing.
But I would like to make my mobility decision independently, that scares me off, and with me some of my friends with whom I have discussed the topic.
Exactly, that's what I mean. I feel like you and your friends.
Sono begins the “Milestones” section on the homepage as follows: “We want sharing (…)”
I'm already out, although I like the concept of the Sion - just as I liked an A2 as a second car back then. But Audi didn't want to sell it for other reasons ...
The Sion and an A2 have something in common. And I don't understand Audi or Sono. Why develop a space-saving and sensible vehicle if you want to sell as few of them as possible - for whatever reasons - and to deter as many potential buyers as possible?
At the time, Audi feared that the A2 would damage its image. Too reasonable. With Sono it's the other way around. The Sion is not reasonable enough for the "manufacturer" itself, so that it should be shared by 10 users if possible. “We want sharing (…)”.
Yeah, how stupid is that? You don't even have a single model on the market, not a single car delivered and the biggest worry is that too many Sion could end up being used individually and owned 24/7? Serious?
If so, what is the point of developing the Sion? Car sharing can be offered by a service provider without their own EV. An app would have done it.
All that remains is the leftover ramp in Trollhättan ..., as already mentioned, scrap metal, scrap and obsolete machines. A tragedy, again.
Sono Motors… time is running out.
When I look at the tweet of 14.1021, I don't see anything from the SONO, just cityscapes. Should be Trollhättan, or not. Slim. I don't see anything of the vehicle. 🙁
That becomes clear in China. done differently!!! See public “Test drives” from the Evergrande SUV.
Well, so far a lot of people have had exciting (well-paid) jobs.
Is Trollhättan and the access to the R&D Center. But Sono is definitely not Saab. They don't dare to drive wildly through Sweden with prototypes or pre-series. They transport their electric car in a trailer.
I laughed out loud at the valuation of € 862 million.
NEVS 'stake in Meneko has been history for a few weeks and Koenigsegg has bought back 65%. That asset is gone.
The connections to the NEVS plant in Tianjin are walking the gauntlet in a legal minefield, which will always work in favor of Evergrande.
SONO will remain a niche product, it is too late and also technically obsolete. The music in the electric car world is played by China Opera and not Schuhplattler.
What the NEVS management is doing now is the right thing. Selling everything that is no longer needed.
From experience with such sales in the steel industry, I know that if done right, this can put good money into the cash register.
The factory cabling alone, which is no longer technically sufficient today, has a scrap value of millions.
Even the buildings are no longer sufficient for modern production. The paint shop is too small for that. And this is the heart of a modern car factory.
The entire system can be demolished without risk and processed into steel and concrete scrap. This, too, brings a lot of money, if it is approached correctly, and helps to transform NEVS into a pure engineering company.
In the interests of the many employees, I wish the company management the courage it takes to cut the financial ties with the mother and to realign the company.
Please add the 20% stake in Koenigsegg AB in the evaluation. Acquired in 2019 for € 150 million. More valuable today as Koenigsegg is doing well. The paint shop has been history for a long time, the factory has not been ready for production for a long time.
Koenigsegg Automotive AB as a group has a turnover of between € 20 - 30 million.
Christian von Koenigseggs, the largest single shareholder of Koenigsegg Automotive AB, will be listed in the WealthyPersons register as of September 2021 with a net worth of US $ 125 million.
Even if shares in supercar companies are traded for rather extraterrestrial amounts, I do not believe that the purchase price of 2019 for the NEVS share in Koenigsegg Automotive AB could be redeemed at the present time.
In the whole thing, something is forgotten that the money NEVS invested in the Meneko joint venture for the 20% paid by Koenigsegg Automotive.
When I look at the financial interdependencies Evergrande Group - Evergrande Automotive - NEVS - Koenigsegg, I see the common 'loading' of Chinese groups between their various holdings and the parent (sponsor company), which I have been following and analyzing in the Chinese steel world for years.
In the event of the liquidation of NEVS, the stake in Koenigsegg would be valued by the liquidator for € 10-15 million.
Koenigsegg Automotive AB's sales in 2020 were around € 64.4 million. It goes without saying that valuations are different in the case of liquidation than in the case of a sale. But liquidation is not yet up for discussion, only sale. Even these activities should be assessed with caution, because someone has to want to sell in return. So far, one only hears about separating intentions from Sweden, in China one pretends not to know about it.
I wouldn’t think so bad because the model is up-to-date. But time costs money and wastes trust. The question mark as to whether Sono and NEVS can hold out for that long and can be financed is growing every month. Too bad.
I just picked up the report that Tom wrote after his visit to Sono Motors. https://saabblog.net/2019/07/24/sono-motors-die-firma-wir-erfahren-nachhaltigkeit/
There was really talk of 2020, now 2023 is the date. At the time I actually thought that would be the salvation for Trollhättan and Tom would have ordered a Sion. Neither has happened. I think that's a shame.
As always the view of the peripheral areas of Evergrande, in the other media Evergande Auto and NEVS does not play a role.
Let's hope things go well for Sono-Motors and Trollhättan!
NEVS probably creates space for the Sion. However, 2023 is very late and I see dwindling opportunities. The opportunity to score points as a pioneer was probably passed in Munich. As soon as the electric car is pressed into the market, the bonus of the early start is gone. How many people will opt for a lean SEV from an unknown manufacturer from 2023 is questionable. The competition is too great.
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