NEVS said this week that a key investor in the re-born Swedish car brand, Qingbo Investment Co. Ltd, is yet to fulfil its contractual obligation to finance the operations.
As a result, National Modern Energy Holdings Ltd (NME, NEVS’ main owner) has decided to become the sole financier of the Saab project.
In the meantime, however, the lack of cash and a slower-than-expected response from China has resulted in a time-lag between Chinese financing and the mounting bills from parts suppliers.
Rather than retreat, NME has stepped up its commitment to China by investing AU$500 million in a new battery factory and technology centre.
“It is important to state that the assets are significantly higher than the debt, but NEVS is planning to use short-term credits to cover all outstanding and near-term obligations until the long term financing is secured,” NEVS said in a statement.
“This bridge solution is planned to be realised within the near future.”
NEVS said it will temporarily halt production – which currently stands at six cars per day – and reduce the number of hired consultants in the short term to lower costs.
It could soon be a case of ‘back-to-the-future’ for Saab, as NEVS has also announced the signing of a “frame agreement” with a major carmaker to cooperate in future development of Saab’s Phoenix platform.
On top of this agreement, NEVS says a second major carmaker is currently negotiating a deal for part-ownership of Saab, although NEVS has not revealed who either carmaker is at this stage.
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