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Saab’s new owners run out of money, production suspended

Published by on May 22, 2014 in News Leave a comment

Saab Production Trolhattan

The Saab saga continues and not the way the Swedish carmaker planned. Just five months after the Swedish brand’s new owners, National Electric Vehicle Sweden (NEVS) resumed the Saab 9-3 production, activity at the Trolhattan factory was once again frozen due to lack of cash and it looks like things will stay that way at least four weeks.

According to the official statement from NEVS, these financial problems showed up after Qingbo Investment Co., one of NEVS’s strategic partners failed to deliver their part of the deal and provide the required money. “The reason is that NEVS’ part-owner, Qingbo Investment Co., has not fulfilled its commitment to, when necessary, finance NEVS’ activity. NEVS is therefore making a temporary and controlled halt of production, which hitherto has been six cars per day, and is reducing agency staff,” the statement said.

Saab’s new owners are looking to bring the Swedish brand back to life through a range of electric versions of the 9-3 and 9-5, for which the company will use the same platform and the same components that Saab developed almost 10 years ago, when the last generations of the two models were launched.

Qingbo Investment, the strategic partner of NEVS, represents the investment agency of the Chinese city of Qingdao, which has already ordered a fleet of 200 electric Saabs that will be used by the local authorities. According to NEVS, production will resume at the Trolhattan factory depending on the result of current talks with several potential partners in Europe, with which they are hoping of jointly developing platforms for future Saab models.

Source: NEVS

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