TTELA: No NDRC approval needed

In an article from reporter Valdemar Lonnroth, TTELA delved into the structure of National Modern Energy Holdings, the 51% majority owner in NEVS. Because they are primarily headquartered in the British Virgin Islands and merely registered in Hong Kong, the NDRC doesn’t have as much of a direct say in the matter. Which makes this whole process much, much easier. The translated article is after the break. Much more on NEVS to come later this week.

National Modern Energy Holdings, the main stakeholder behind the electric vehicle consortium looking to buy Saab, is registered in the British Virgin Islands, which in turn is controlled by a holding company in Hong Kong. And behind it all stands the Swede Johan Kai Jiang.

It appears when TTELA begin examining the ownership structure behind the National Electric Vehicle Sweden.

When TTELA revealed the companies behind the electric vehicle consortium in the week before last, it appeared that National Modern Energy Holdings was the principal owner of electric vehicle consortium, the National Electric Vehicle Sweden (NEVS) – by 51 percent. The other shareholder is the Japanese Sun Investment. Then it was said that the National Modern Energy Holdings was “Hong Kong-based.” But when TTELA search the Business Directory for companies registered in Hong Kong does not show its name.

By some accounts, it was thought that the principal owner of NEVS instead would be based in China itself and not in the standalone administrative region Hong Kong. And in that scenario the “super ministry” NDRC approval would be needed – the department that was one of the factors that dragged on for Saab last year.

But after TTELA spoken several times with communications officers for electric vehicle consortium in the Springtime, the entire ownership structure was presented.

“Nevs is owned by Hong Kong,” says Mikael Östlund at Springtime, but not directly, it turns out.

The holding company National Modern Energy Holdings is registered in the British Jungru Islands, island group east of Puerto Rico. This holding company is fully owned by the China Dragon Base Holdings, registered in Hong Kong – and who are in the business register in Hong Kong. And in all these companies,  the Swede Kai Johan Jiang is principal owner.

The ownership structure looks like this means there is no need for approval by the NDRC in terms of interest about Saab.

It is noteworthy that Kai Johan Jiang controls the Chinese biofuels company State Power Group, which he founded, from right National Modern Energy Holdings in the British Virgin Islands.

larssverre
Member
4 years 3 months ago

Not good for Saab, I think.

SaabKen
Member
4 years 3 months ago

Why ?

Rolf Hägg
Guest
4 years 3 months ago

If you have to play ownership games and register your company in another land to get out of your countries rules, you are not an established company and will be flying by the seat of thier pants, not planning and wasting money. This will lead to the eventual demise of Saab (again).

Smoke and mirrors as they say, smoke and mirrors.

M&M would be better.

JasonPowell
Member
4 years 3 months ago

If it’s NEVS in the end then your point about M&M would be better doesn’t apply because it’s not and we might as well wait and see rather then just come down on them saying they are no good and they play games.

Rolf Hägg
Guest
4 years 3 months ago

Perhaps, but I hate smoke and mirrors and this is what I can see for now. They came out of nowhere, pulled some strings to get around their countries laws, won’t say anything to anyone, they are relying on venture capitalists and yet they win the bid. Not a good start in my book.

JasonPowell
Member
4 years 3 months ago
“P”, how much has Mahindra said to anyone? Not much, that is what is impressive and frustrating through this whole process. The only ones to talk has been Youngman which actually makes me more worried about them, almost like they have nothing to lose so keep on talking. I am not prepared to give up or walk away from anything because even with NEVS, I don’t know as neither do you what their intentions are fully. I don’t have a crystal ball so I don’t pretend to know the future and I refuse to live in the past because the… Read more »
Dan P
Member
4 years 3 months ago
Exactly right, we know almost literally nothing – about anything. What do we really know about the plans of M&M or YM, or even BMW if they were actually in the picture? Until we actually know something concrete it’s utter, utter foolishness to decry the direction they “seem” to be taking. It’s pure speculation. Ok, we’re all passionate and it’s actually fun to speculate, but give it a chance before declaring the end is nigh. Regarding ownership and business setup – it’s not uncommon for a business to be based somewhere, but registered somewhere else. There are tax benefits. And… Read more »
Chris Hansel
Member
4 years 3 months ago

Jason, brillant,” the good old days are how we got here.” Indeed, And I don’t want to live in the past either, good insight. Time to move on.
Chris

Piet-Hein S.
Member
4 years 3 months ago

the ownership-construction sounds quite complicated to me…let’s hope that they have enough resources (i.e. M O N E Y) to restart production of cars, not windmills…

spacy
Guest
4 years 3 months ago

I assume this post is here because:

1. It is confirmed NEVS have bought the assets of Saab Automobile AB [or at least the bits they wanted].

2. If 1. is confirmed, they [NEVs] have sufficient funds outside China to buy & finance the new Co’s’ development [that % not financed by Sun Investment], otherwise they surely will need NDRC approval to move money to invest in the west.

kevinl
Member
4 years 3 months ago

Feels like too much smoke and mirrors. I don’t get a good feeling from this group.

fanofsaab
Member
4 years 3 months ago

Doesn’t seem likley that national ELECTRIC vehicle sweden is likely to produce our beloved Saab Turbo’s anymore. Should the NEVS be the victor/winning bidder, I just can’t Imagine the product and time it would take to produce a car we Saabophiles can claim as ours

Rolf Hägg
Guest
4 years 3 months ago

Saab is dead. RIP

Jos Callinet
Member
4 years 3 months ago

Agreed

fanofsaab
Member
4 years 3 months ago

I’m as skeptical as anyone about NEVS. I also can try the optimist approach…how about looking at it as if they just went into hibernation, employees come back and revive the company who understand Saab DNA and can help develop not just appliances, but Saab’s we’d at least consider buying

hans h
Member
4 years 3 months ago

No, Saab is not dead. It is dormant.
And this is confusing and frustrating.

I will look for my patience in my bed (or in a glass), because I’m out of it now.

David-SAAB
Member
4 years 3 months ago

SAAB died last December. Wea re looking for a resurection!!

Jos Callinet
Member
4 years 3 months ago

Why NEVS has any interest in SAAB is beyond my understanding – and, as I’ve asked before, why all this speculation about who’s bought what BEFORE the bankruptcy court makes public its own announcement?

I’m frankly getting frustrated by all the second-guessing and unsubstantiated rumours.

PLEASE CAN WE JUST HAVE SILENCE UNTIL THE BANKRUPTCY COURT TELLS US THE WHOLE TRUTH AND WE HAVE SOLID INFORMATION TO DISCUSS!

Allan B
Member
4 years 3 months ago

Fascinating story. What else do we know about Johan Kai Jiang? He is half-Swedish, half-Chinese right?

saabyurk
Member
4 years 3 months ago

Well, here’s some reading for you. A long interview with him in Mar 2010 with regards to Dragon Power and biomass energy. Apparently they were not making any money back then.
http://www.knowledgeatwharton.com.cn/index.cfm?fa=viewArticle&articleID=2187&languageid=1
.

Coke is it
Member
4 years 3 months ago

If there will be a new Saab 900 eXWD combi or hatch as Saab already planned to build I will consider to get one if it is released within 2 years from now. If they have plans to build an EV or a traditional hybrid (that works as Prius) I will move on to another brand for now.

My first choice is still to get a new 9-5 SC immediately if GM caved and let them build them.

Mark
Member
4 years 3 months ago

I would of probably purchased a 9-5SC this year if they had survived.

Jos Callinet
Member
4 years 3 months ago

The 9-5 SC is just the car I would jump at the chance to buy – but at this point I seriously doubt we’ll ever see manufactured any more SAABs as we’ve known them.

paddan
Member
4 years 3 months ago

I’d prefer seeing this outcome than nothing at all. I don’t think the new 900 Turbo is coming anytime soon, though.

Turbo_Charged
Member
4 years 3 months ago

“smoke and mirrors”, the true owner may one day be revealed. What a fantastic error of judgement by the Administrators.

Turbo_Charged
Member
4 years 3 months ago

Can’t wait to see what happened to the parts operation. Sold to a single entity or split, despite implications to the contrary?

Coke is it
Member
4 years 3 months ago

I found something troublesome on Saabs homepage…

http://www.saab.com/en/international/ is now the home of Saab Automobile Parts AB. I think that is a very recent change. My guess is that NEVS will not build any more Saabs… they are just after the assets, this looks more and more like they want to buy all of the assets and then just sell off the parts one by one.

Take this as pure speculation but as long as the administrators are quiet we don’t now anything so we must speculate 😉

spacy
Guest
4 years 3 months ago

SEE MY COMMENT BELOW [WHEN IT APPEARS]

Mark
Member
4 years 3 months ago

NEVS – this is what you have to live up to…
http://cars.uk.msn.com/features/the-best-saabs-ever#image=12

Can you do it?

BMW Rider
Member
4 years 3 months ago

Geez, which shell is that pea under again?

davidgmills
Member
4 years 3 months ago

Which pea?

davidgmills
Member
4 years 3 months ago

One good thing. The Virgin Islands aren’t that far from the US.

The rest — Good God Almighty! Who are these guys?

100%Saab
Member
4 years 3 months ago

Something has happened, because http://www.saabusa.com is now http://www.saab.com/en-us/usa.

spacy
Guest
4 years 3 months ago

This is the same as what happened in the UK.

The ‘new independent’ parts business, takes over the old Saab automobiles web sites.

http://www.saab.co.uk/gb/en/start#/home/

NB And why is my comment ”Your comment is awaiting moderation”.

spacy
Guest
4 years 3 months ago
I was not going to say on this, till the Administrators actually confirmed this situation, however. What does surprise me is the chain connected to NEVs, by way of all the elusive off shore registrastion, which no one will be able to actually say who’s who in this situation. It has been stated on here many times, about the administrators’ being held personally responsible for the decision they make. ie; they are responsible for the outcome of the bid & into the future if they choose the wrong party. Therefore following that argument, how can anyone say if they do… Read more »
TonymacUK
Member
4 years 3 months ago

Check out Kai Johan Jiang on the internet, loads of info re him and Dragon Power.

David-SAAB
Member
4 years 3 months ago

OMG! Whinge, Whinge, Whine, Whine – have a listen to yourselves! Enough speculation on what will happen to SAAb under ownership of NEVS. The company hasn’t even spoken about what thier intentions are! Just everyone calm down and wait to see what this outcome will be. We really dont have a choice anyway. OK I’m gonna say it….ready…….”Keep calm and carry on” There….. you made me do it! 🙂

derek
Member
4 years 3 months ago

I hope NEVS last a long time. I think they are a risky venture. Look how GM would be if they depended on the Chevrolet Volt or how Nissan would be if they depended on the Nissan Leaf to survive.

I hope that NEVS is paying much more than Youngman or Mahindra because the creditors should get as much as possible.

For the driver who likes the Saab 900 or Saab 9-3, NEVS offers little. The only comfort is maybe some people will be offered a job at the factory.

NorthOfAtlanta
Member
4 years 3 months ago

I think I’m going to wait and see what NEVS has planned for SAAB, after reading this interview from 2010 with Kia Johan Jiang it might be interesting to see what their plans are for SAAB.

Link http://www.dpcleantech.com/medias/news/interview-with-chairman-of-dragon-power-kai-johan-jiang

turbin
Member
4 years 3 months ago

Now THAT is an interesting insight and many here would do well to read it.

Dan P
Member
4 years 3 months ago

Thanks for posting that, interesting reading. How it will translate to cars is at once clear, but a bit hazy when it come to the things we love like turbocharging. But, do you need a turbo to generate momentum in an electric car…? 🙂 This is actually what makes a Saab hybrid exciting to me – turbo-4 with electric axle (to help with low end and lag) sounds awesome!

Peter Gilbert
Member
4 years 3 months ago
Keith
Member
4 years 3 months ago

However implausible, it may be a step up from Spyker. At least they aren’t funded by North Street Capital.

talladegan
Member
4 years 3 months ago

But do we actually KNOW that they aren’t? 😉

davidgmills
Member
4 years 3 months ago
Found this: Jiang: We introduced Denmark’s most advanced technologies and localized them, making the plants burn a variety of crop stalks and forestry waste to improve the adaptability of biomass fuels. This made our combustion efficiency 30% better than that of our domestic counterparts. In addition, we are committed to reducing power plant construction costs, having already cut the per-KW construction costs of a 30 MW power plant from RMB 11,000 to RMB 9,000. More important, however, is our business philosophy. Even now, the purchase price of biomass energy doesn’t cover the generation costs and only a handful of our… Read more »
saabman
Member
4 years 3 months ago
This is interesting… I just looked at the NEVS website again after a couple days. I see that they have somewhat altered their English text to make it sound a bit more natural: the word that stood out to me as odd–“innovativeness”–has been replaced with “innovation.” When the sit first came up I was going to question whether innovativeness is even a word, but I looked it up and it seems to be legit, just not very natural or common. It sounds better now. Though, they write that “Saab Automobile, Trollhättan and Sweden stands for innovation…” It should be “stand”… Read more »
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