No production contract between NEVS and Sono Motors

Two years ago, NEVS and Sono Motors announced the planned production of the Sion in Trollhättan. Up until now it was believed that the contracts were binding. However, these do not yet exist, as NEVS CEO Stefan Tilk announced in an interview with Dagens Nyheter. In Trollhättan, the first thing they do is wait for Sono Motors to go public. Only then do you want to sign binding contracts with the Munich company.

NEVS - look into the old Saab factory
NEVS - look into the old Saab factory

Successful IPO is a prerequisite

Sono Motors passed that on October 22nd Registration Form for the planned IPO. The company hopes to be able to raise the necessary funds for the production of the Sion. Only then does NEVS want to conclude binding contracts. In the Dagens Nyheter interview, that Electrive.com had made public, Tilk emphasizes that the production for NEVS "must be worthwhile". A remark that suggests that the production fees have not yet been fixed.

In general, the situation in the Stallbacka seems to have been clarified and viewed with a previously unfamiliar kind of realism. Because NEVS will not “stand or fall” with the order, but welcome the “additional service”. So far, Sono Motors has been using test benches and test facilities in the old Saab factory. NEVS also supported the Munich-based company in the manufacture of some components for the Sion and prepared parts of the factory for production.

Start of production in 2023?

The inevitable question is how resilient is Sono Motors' schedule under these circumstances? In Munich, the last quarter of 2022 is currently being proclaimed, and after several postponements. NEVS CEO Tilk says that 2023 “would work”. However, one must not forget that there are 12 months in a year and that 2023 is therefore a broad field.

290 fewer employees

NEVS now also has the negotiations completed on downsizing. 225 employees will lose their jobs if they quit. 75 of them from the workshop and production area, 150 from development and administration. The remaining jobs have been cut by employees who have already submitted their resignation. NEVS almost halves the number of jobs.

The company is thus embarking on a strict austerity course and hopes to bridge the time until the sale or entry of new investors.

5 thoughts on "No production contract between NEVS and Sono Motors"

  • blank

    As dry as crispbread

    I like the realism in Trollhättan, NEVS 'view of Evergrande and Sono.
    The information will certainly not benefit Sonos' IPO, but it has to be that much honesty.

    I already wrote once that Sono does not give the impression of becoming a manufacturer with bite and wanting to grow as such. What an investor should speculate on is not clear to me.
    More than a sharing app and the processing of pre-orders and liabilities to the community is not in the shop window - the production by NEVS is also on clayey feet. That is thin. It's a shame, but it's your own fault.

    • blank

      I guess Tilk has (finally) drawn the right conclusions from the last few years. Big visions are one thing, money on the table is quite another. The press for NEVS has been particularly bad in the last few days. Almost every Swedish medium has reviewed the promises that have not been kept and "accidents" since 2012. That goes to the kidneys.

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        Oh dear, that doesn't make a nice press review.

        Because we had the topic recently:
        When reading across the Sono Motors homepage, I did not find any signs of planning or even a vision of other models ...

        So much frugality before going public? In perspective, I would put a sonnet and a sonata next to the Sion and in the shop window for investors.

        The Sonett would be a roadster with a hardtop that could be driven either open or closed.
        The sonata a little shooting brake. The market segment is completely fallow - as an SEV anyway. But it is also interesting that old combustion engines are sometimes noticeably performant here. A good A2 or a Smart Roadster can only be bought second-hand for a number of years, but then after 1 or 2 years of use it can be easily sold at a profit.

        Demand exceeds supply. A perspective model range from the Sion to a sonnet to the sonata, each in the form of environmentally consciously dimensioned SEVs, would be a real announcement to potential investors. Childless singles and couples, divorced and single parents with only one child (Sonett), sporty people to pensioners with golf bags and other sports equipment (Sonata) and a decent car for parents (Sion) in everyday life - social developments and the market speak for themselves for positioning yourself as a manufacturer in these growing niches in one way or another. In precisely these three niches and precisely in this combination of three models. All on one platform, but each with its own unique selling point on the market.
        If that were the plan, I would buy stocks. It is a real shame that Sono is so frugal and devoid of visions. Also for Trollhättan.

  • blank

    Castles in the air, this time from Munich to the amusement. That will hardly boost the IPO. Presumably, the next step is to ask for tax money as a subsidy.

    • blank

      Tax money is only available for jobs or system relevance. Neither can be an argument for anything at Sono Motors and you probably know that too. I'm also not yet convinced that the Sion will work, but the store is certainly not completely naive.
      After all, you know where to sell “castles in the air” because you are planning to go public in the USA. That could even work, there are always investors who are looking for opportunities and diversifying them so widely that a failure does not overturn them.
      Still says nothing about a possible sales success of the Sion ...

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