The latest news, the Swedish National Electric Vehicle Company (NEVS) recently said that due to insufficient funds, it will temporarily suspend the production of its Saab car.
NEVS acquired the bankrupt Swedish car brand Saab, which had a small-scale maternity production of Saab last year. The company said there is currently not enough cash to pay outstanding debt. Nevs said in a statement that one of its shareholders, Qingbo, failed to fulfill its contractual obligations and provided financial support for Nevs' business. NEVS has therefore temporarily suspended production, with an average daily output of 6 vehicles, and will also reduce agents. NEVS spokesperson Mikael Ostlund also said that the factory has been discontinued for four weeks.
Qingbo Investment Co., Ltd. acquired approximately 22% of NEVS last year and ordered 200 Saab electric vehicles for urban transportation. Ostlund said: "Qingbo has not terminated our transactions, they said they will continue to perform the contract, but we have not received their financing."
NEVS launched an old Saab car for China's domestic market, hoping to let go of this electric car brand to come back to life, because the Chinese government is promoting clean car technology. The Saab electric version will compete with the corresponding models such as BMW, Volkswagen and Ford.
NEVS said it is negotiating with automakers about the development of new platforms for new models and is also negotiating with another automaker about the purchase of NEVS equity.
Ostlund said: "The company is looking for relevant solutions and expects to have a valid outcome in discussions with prospective partners in June.