NEVS starts production of 2014 Saab 9-3Enlarge Photo
However, with crucial funding from the Chinese government drying up earlier this year, production has come to a halt and NEVS is now facing bankruptcy itself. The company managed to secure bankruptcy protection from a Swedish court but that has since expired so NEVS is currently seeking an extension on the grounds that it is in talks with two Asian firms, believed to be India’s Mahindra and China’s Dongfeng, and that a deal with one of them is close to being finalized.
NEVS says it has signed a letter of intent with one of the Asian firms over a deal that will see the Asian firm become a majority shareholder in NEVS. NEVS says that if a due diligence phase proves successful, the Asian firm will provide NEVS with 5 million euro (approximately $6.2 million) per month in bridging loans until the acquisition of a majority stake in NEVS is complete.
If all goes to plan, NEVS maintains that its aim is to continue production of Saab cars in Sweden as well as complete development of the crucial Phoenix platform so that a new generation of Saab cars can be launched. Unfortunately for NEVS, the company has also lost the rights to the use of the Saab name during all of this, though it seeks to regain these rights from the actual owner, the Swedish defense and aerospace group also known as Saab.
Stay tuned for an update.