NEVS Has The Money Needed For Production

August 15, 2013 in NEVS, News

Yesterday P4 West reported that in the annual report of NEVS first year that as a company they had lost SEK 120 million and they have enough money to produce Saab cars once again.

Mikael Östlund stated that the loss was expected and was all according to the business plan.

In early summer became the Chinese city of Qingdao partner and has paid 649 million dollars for 22 percent of the shares. While it has given promises to Nevs may borrow further over 1.1 billion, according to the annual report.The money is enough to start building Saabs again, writes Nevs.

We have financing that covers the company’s activities in 2013 and that is enough to resume production at the factory in Trollhattan and it derives also from the enhanced funding we received in that Qingdao is now a partner in NEVS, says press officer Mikael Östlund P4 the West.

According NEVS will get more money this year, but the work to include developing cars and start production will also lead to increased costs.

Very interesting times at SAAB/NEVS to say the least. Personally, I would like more information than that production is starting again. It’s great to hear that production workers will be once again making SAABs and SAAB cars will be on a road in the future but for me, I want to know precisely what roads and a layout as to when and what markets will be added.

This is a great thing to be celebrated and I am so happy for the workers that will be called back.

63 responses to NEVS Has The Money Needed For Production

  1. The loss is 120 million swedish kronor – not Euros.

    • You can probably blame the mistake on Google Translate. It thinks it’s smart by inserting the euro symbol in place of kronor, but it doesn’t change the number. It does worse stuff that drives me nuts.

      • yep google translated it and I took from there…. to me it’s not so much about how much was lost because there was no way to make money without cars and hopefully we start to see more and more about that in the near future, the cars are what matter to most of us here.

        • Jason,
          you are right, it is not so much about the losses in 2012, but it is still a difference between 18.5 Million Dollar (SEK 120 Mill) and 160.2 Million Dollar (€ 120 Mill).

          • I’m slightly relieved to hear that it’s “only” a loss of £11.8m (or $18.5m or €13.8) still quite a bit but I expect that it takes a lot of money to re-start a business…

  2. Well SR P4 are creating news apparantly…
    Of course a company that don’t sell anything will make a loss.
    Nothing to be bothered about.

  3. 120 million SEK is approx. 14 million Euro….
    …or 19 million USD.

  4. My wife claims that she saw some kind of checkered strange looking SAAB on the E45 highway between Trollhättan and Göteborg this morning… Did anyone else see anything like this today? Was it for real? What was it? I know it sounds kinda like a UFO-sighting report but I want to believe!! ;)

    • Where is “Djup strupe”? “Deep Throat”

      • Talking to me ;)

        • I know you can’t reveal your sources TIm—-but are you certain the source is credible? Aren’t sources sometimes kooks who are looking for attention?

        • Speaking of which, as mentioned in another comment—-I’m on Spyker’s e-mail list. And now I’m beginning to understand why some of the Saab faithful are happy with NEVS’ silence, as compared to Mullers “Blah, blah, blah.” Frankly, I think there’s a reasonable middle-ground and saying NOTHING is just as bad as saying too much—-but to the point: I received an e-mail that Spyker’s new model would be unveiled “soon” (big announcement coming) and it showed a car with a tarp over it. Then, a few days later—-another e-mail, showing the car itself (a little roadster, not bad looking but undoubtedly overpriced and with a laughable dealer “network” too). But when I read it—-the whole thing revolved around this being a CONCEPT not even a new, available model. It apparently won’t be available in the U.S. until 2015, and that’s if all goes well I’m assuming. What a crock. What a ridiculous crock. If that’s why people have challenged me when i say NEVS needs to talk more—-I now understand—-I get it. No, I don’t want NEVS performing stunts like that—-which wreak of a pyramid scheme in some ways. That’s not what I’m looking for.

    • Maybe it was the Landvetter Airport’s friction tester on a wrong way :D

  5. Good that they give a sign of life, once in a while . New saabs , new standards , together . O no , that was another brand.

  6. Jason: To NEVS, the “Great White North” is probably northern China. Don’t hold your breath, buddy! Too bad Muller didn’t speak Mandarin. Maybe he could have lined up this province as a partner!

    • how do you know VM doesn’t speak Mandarin? Might be one of his hidden superhero skills!

      • It’s an assumption based on his begging the Russian underworld for loans instead of going to the great wall.

      • VM could learn to speak Mandarin in a heartbeat if a Chinese automaker was struggling for survival, and he could figure a way for another fat pay-day.

        • Always seems to be looking for “funding” or “investors” doesn’t he?

          • Yes, and a miserable failure in every venture..except enriching his parasitic bank account!
            Saab is just another one of the prostituted companies of VM.

            • I wonder at what point one of his ventures will be self sustaining—-making profits that he can use to fund its growth—-instead of turning to other sources to “borrow?” I thought the idea of seed money was to grow plants that bear fruit. Seems like he grows a hell of a lot of weeds—-and keeps asking for more money to buy seeds to grow more weeds—-and we never see fruit.

  7. Losses during the pre-production phase are expected. The real test comes once manufacturing (and the related production cost) begins . For example, the previous owner lost more money selling cars than NEVS lost while selling nothing.

    • The previous owner had some thousands employees aswell and that is not yet the case for NEVS yet. You have to compare apples and apples, but in general I agree to your comment and let’s take a look at the result in 2-3 years.

  8. what is so frustrating is that this is not “real” news – when? who is going to sell and service them? will they in fact be coming to the US? What about parts – which is my own frustration – not thrilled with “after market parts” that do not perform as well as originals.

    • Harriet: I’ve tried. Many times. Don’t bother. NEVS is in “NEVS WORLD” and they will speak when…well let’s see: Umm… “They will speak when Earth’s Moon aligns with Venus, and when the piece of rock formerly known as the planet Pluto’s rotation encroaches closest to Neptune—-when pigs fly and when doves cry. Only then can they tell us “ancient secret” that indicates which markets Saab will be sold in under their control.”

  9. Jason, Although the article states that financing is sufficient to cover the Company’s activities in 2013, based on the amounts discussed in the article can this be interpreted to mean 2013 plus some time beyond that?

  10. So far, NEVS has delivered on it’s promises and that is great, but at this time and point, it would be nice to know what exactly they are preparing to build. A fecelifted 9-3 ok, but with what engine and drive train? Looking at what is coming down the BMW hybrid and EV pipeline, a new partership with the Teutons would be very positive.

  11. The BMW X-1, all wheel drive, panoramic sunroof—stickers at around 35K, US. You’ll spend more if you’re Johnny gadget and need “the technology package” or if you want to load it up further. But for mid-30s, you can get a very capable little sport-ute with BMW heritage, resale value, handling, etc. Can NEVS deliver something like this, for around the same price?

    • Angelo,
      what was the price of a comparable 9-3x?

      (personal interest)

      • I never priced those—-but I think the 2010 X stickered for between 36,500 – 38,500 or in that range—-based on a quick Bing search. As a 2013, my guess is that adjusted for inflation, a comparable one (to the BMW I priced) might cost 38,000—with discounts, maybe 33,500? In fact, same ballpark as the BMW and the Saab would be leather. I think I priced the BMW with leatherette. If Saab offered leatherette or textile, you could drop it down another thousand bucks or more. I’m a big believer in giving cost conscious buyers the chance to opt in to a luxury brand—-without having to spring for leather, 18″ super styled allow wheels, every piece of electronics crap available (that most people won’t use), etc. I love the way BMW sells the X-1. You can load it up with all of that stuff if it makes you feel better—-or get the same chassis without the extra features, for many thousands less. NEVS should have a hard look at that. By the way, check out this link to see some reviews on the Saab 9-3, 2010. Great stuff. The 9-3 is still very competitive—-don’t believe otherwise (add the www). .cars.com/saab/9-3/2010/consumer-reviews/

        • Angelo,
          you are just talking about the way we Europeans buy our cars. At least here in Germany you can get almost any model without leather and electronic gizmos, but if you like you can also buy the base engine fully loaded with the most expensive trim and all the electronic gizmos. It is not exactly BtO but almost, but you have to wait many moths for your car and the price rises up to the sky.

          • Well, if the prices rise up to the sky—-it sort of defeats the purpose of doing without leather, metallic paint, electronic everything, etc. It would only make sense if decontenting the car would bring it in at a lower price. Back in the 60s and 70s, I remember the American car companies allowed you to order a car—-to be delivered in 6-8 weeks—-completely custom to your wants/needs. My Dad ordered a few Cadillacs that way. You pick exterior color, vinyl top color (if so desired, interior color/surface material, carpeting color, dashboard color, engine, transmission, etc. You could specify a lighted vanity mirror for the passenger and a plain mirror or no mirror for the driver visor. You could put an outside mirror on the drivers side and not the passenger side if that’s what you wanted. Clock or no clock. There weren’t “packages” but instead, a giant list of options and it was ala carte. I remember one lighted vanity mirror for the passenger side costing $40.00.

            • I managed to add 20.000€ to a base Audi A1 (86 hp; 16.000€). You end up with a car that looks like the top of the line A1 and costs almost the same but with a very lame engine ;-)

        • BTW, I’ve checked the price of the X1 here in Germany, and for the most basic 4WD X1 with sunroof but textile seats and basic radio, BMW ask a sticker price of 35.000 €, and you only get the 180 hp engine, for the 240 hp engine as offered in the US they are asking 42.300 € (still with basic radio and textile seats and no electronic gizmos) which is about 56.500 USD.

          I’m saying this only to put in perspective when you say that Saab should sell the 9-3 for 25.000 €, and we in Europe say that it can’t be possible.

          • How is Volkswagen selling cars in the U.S. in the 20s—-that are pretty well equipped? I think I know the answer: Many of these cars are manufactured in Mexico. For Saab to be a serious player, it is possible that they are going to have to produce some higher volume cars outside of Sweden—-China comes to mind. Or, if they really do have a lot of punching power (some here have suggested that they are very well financed) then they might eventually consider building factories closer to the markets where they will sell. Kia put a factory in the southern United States—-I believe they build Optmas and Sorrentos there. They have a hard time keeping up with the demand. BMW has a factory here, as does Mercedes. Most of the Japanese brands have U.S. domestic factories too—-not for all of the cars they sell in the U.S. but for some. There are large car factories in Canada and Mexico too. Can NEVS think big? Can they deliver big? We don’t know yet.

            • I don’t know which cars sell VW in the US in the 20′s but as far as I know most of the US VW are made in USA or Mexico and they use inferior materials as in their European cousins, (I know from the US Jetta and Passat).

              So maybe this is one argument, the other one is that ht eUS car market has been perverted by the war between the car companies, and as you know one of the three big american car companies died in that price war, and the second one did not die thanks to a very expensive heart transplant at the very last second thanks to the US tax paying citizens. My point of view is that VW must be present in the second largest car market if they want to be the biggest car company in the world, and they don’t care much if they only make some cents in profit for every car sold. Currently they have the Chinese market to make money.

              Regarding NEVS building factories closer to their markets, what do you think is the reason NEVS will build that factory in Quingdao? But I don’t think that it makes sense for NEVS to think about an American bound factory (Mexico would be the best as Mexico has some free market agreements with countries in southern America and northern America).

              • VW has definitely cut some corners to lower the price on the Jetta and Passat but they are still competitive with other cars in their price range. If VW has to charge an Audi price to have higher end materials, what’s the point? I’ll just buy the Audi. But if VW can give me a decent platform with good driving characteristics—at a relative value price—-I’m willing to put up with less than stellar plastics inside.

                Where does that leave NEVS? I think it leaves them pretty much where they were when the Muller experiment failed—-except without the outstanding 9-5 and 9-4. They are not perceived to be Audi, BMW or Mercedes, so my belief is that no matter how good their cars are, they cannot/should not price their cars the same as those makes—-they might want to slot between Volkswagen/Subaru and Audi perhaps. I do think NEVS plan might be higher volume and lower profit per unit. If that’s the case, that factory in China might be making cars for markets outside of China. I’m okay with that. I’d love to see the first “made in China” cars on American roads as Saabs—–affordable Saabs that outsell anything else Saab has ever offered here. Will it happen? If anyone knows, please pass that information along—-whether it’s a yes or a no.

                By the way, if you’re referring to Chrysler as the company who died and GM as the ones who got the taxpayer funded bailout (heart transplant), I actually beg to differ. I think Chrysler got a heart transplant—-and the heart that’s now beating (Fiat’s) has done some really remarkable things with Chrysler, so far, on a relatively small budget. They have upgraded every Chrysler product interior since FIAT came in—-all of them look upscale now and feel upscale too. The Dodge Dart is a FIAT product that is better than any small car Chrysler has ever offered—-much, much better than the Neon or Caliber (that it replaced). It’ll be interesting to see where this leads. They’re the ones with the new heart. GM? A few decent, interesting products, but I fear, the same crappy management and behaviors that landed them broke—-will break them again.

                • Angelo,
                  you got it right. Saab was, as far as I was able to compare sticker prices in the past, somewhere between VW and Audi, but still Saab was accused to be to expensive. Many SU readers asked for BMW fit and finish with a Kia sticker price, but this will never be. I don’t know in what price range will be the NEVS-Saab cars, but I hope that they will keep an affordable price.

                  Yes I was referring to Chrysler and GM, and I beg to differ. One thing is what FIAT has managed to do with the company, but Chrysler was dead prior to the contract with FIAT. And GM was almost dead, got a bailout from the taxpayer so it is now still alive. Maybe the current management still believes that GM is “too big to die”, but which brands will GM kill next time?

                  • Actually, the talks between Chrysler and Fiat were years in the making before it actually happened. Chrysler and GM were both in bankruptcy. The only thing is that GM’s was different in that bond holders were never paid—–but because the government stepped in with taxpayer money, GM did not reorganize and shed legacy costs like union wages/benefits and pensions, healthcare for retirees, etc. In the long run, the bailout is going to harm them way more than it will help them. Using our standard bankruptcy laws, they could have emerged much leaner—-it would have been a much tougher road for a few years, but they would have been positioned for the future. Now, I see them as a junkie. As soon as they blow through this money, they’ll be begging for more. if we have common sense folks in power at that time, the answer will be “no, now go away.”

                    • I think I could agree with you on your GM analysis.

                    • This article has opened my eyes on «the great GM rescue»
                      http://www.stansberryresearch.com/dailywealth/2125/gm-americas-biggest-bankruptcy

                    • What would have been the point Angelo to cut all the “legacy costs” due the workers? To have American workers work for so little they could never hope to buy the cars they made? I have never understood this race to the bottom that libertarians seem hellbent on making. We need higher wages for workers not lower wages. And the people that actually make things, rather than push paper, need to be paid, well not crappy. Pay the paper pushers crappy. They don’t do anything worthwhile anyway.

                      Here3′s a great article on the subject called “On the phenomenon of bullshit jobs.”

                      http://news.infoshop.org/article.php?story=20130820174826479

                    • David: I will read the article with as much of an open mind as I can muster. My family has some first hand experience with a union who was being unrealistic with their demands. If my Dad had paid what they were demanding—-he’d have no chance at winning contracts anymore. He sold the factory, which at its peak employed about 100 people in a very small town. The people who bought it, converted to a largely automated operation that made a completely different product—-and probably employed no more than a dozen people. Net loss of around 70 jobs in a small town hurts. Those jobs first went to the southern United States and later, perhaps Mexico or overseas. And David, it’s not a race to the bottom—-but those people screwing the cars together in Detroit, with platinum health insurance, an extremely high salary considering educational level—-and pension/healthcare for life—-averaged out to be making triple the amount of the people they were asking to buy the crappy cars they made. Is it any wonder America switched to Honda and Toyota for basic transportation, Mercedes, BMW, Volvo, Lexus, etc. for the luxury cars? And the point of cutting some of those costs in an organized, traditional, standard bankruptcy would be to emerge as a viable entity again—-not needing to raid taxpayers pockets to stay afloat. When their booty runs out, which it will, they’ll be knocking on the door again for more moolah from Uncle Sam. I hope next time, the answer is a hearty laugh.

                    • All bankruptcy usually does Angelo is protect the banks. The bondholders get priority payments and everyone else gets the shaft. Just like what happened with the banking bailout. All the taxpayers foot the bill for the banks’ frauds that caused the debacle.

                      It is always the little guy who gets the shaft.

                      What irks me is that BMW pays its German workers about $60 per hour in wages and benefits and comes to the US and pays our workers $20 in wages and benefits. That is the real reason BMWs are cheaper here. If Saab wanted to compete in the US market it needs to come to the US and produce cars where wages are cheap and getting cheaper. Pretty soon we will be working for a dollar a day.

                    • What’s wrong with protecting shareholders and making sure they are paid out? That was one of the travesties of the GM bailout—-ridiculous. And sure, maybe Saab should make cars in the U.S. for sale in the U.S., if that will make the price more competitive. Kia assembly line workers in the U.S. seem to be quite happy with their positions—-as do many of the employees of car assembly plants in the southern U.S.

                    • I said bondholders get protected. Shareholders usually get the shaft. And you never answer my question of why you think our workers need to work so cheaply. I conclude you hate your fellow Americans. Either that or you envy anyone who makes a decent wage. Or maybe you just like a country with gross inequality, which incidentally has now been linked with poor health for all citizens, not just the poor. Stress is a bitch.

                    • I’ve seen the alternatives for all you mention—-socialism, communism, nationalized healthcare, etc., and yes, I’ll stick with inequality, which is often the result of “harder you work, more you accomplish, greater rewards” and also, for those who give us new products and conveniences, cutting edge pharmacy drugs, fads our kids can’t live without, etc.—-for those creative minds, they deserve to make a fortune and I have no envy toward them at all. They make my life better. It’s not envy, but anger I have toward people with less ability, who do less work—-who live off of my tax dollars on the government teet. What would you like David, a system that gives us Ladas and Trabants? Perhaps you’d like a nice Trabant 601 custom cabrio? Okay, I’ll bite: What’s wrong with bondholders being protected?

  12. why nevs is so quiet, no marketing or advertising, in my opinion Nevs has no money enough to re start production, lack of luxury cars demand is on of the main reason to delay the kick off

    • Sorry buddy but your opinion doesnt matter…

      What matters is the truth: that nevs is not yet ready for maketing.

      Starting a new company to produce cars is not something anyone can do in just a year and a half.. Take it easy and wait!

      • Oh God, how I wish NEVS had started a new car company. Tim—they’re not starting a new car company. They’re squatters, and they’ve squatted in the car company named Saab. You’re right about one thing—-they’re “starting” a car company in that they had no clue what was involved in doing it—-clearly, they’re learning on the job, on my time—-because they never built a car. An established car company (Mahindra, BMW, Fiat, Volvo, etc.) would have had more people back to work by now and quite possibly, cars rolling off the assembly line, dealership agreements secured, etc. The Receivers made a mistake. Thats over now, so we’re living with it, hoping for the best. And yes, I know that some of the suitors didn’ want to keep Saab intact—-they might have just wanted factory capacity for a different brand maybe. In that regard, naming NEVS as the new owner made some sense for fans of Saab—-but I thought there was more involved in the decision than that. And while our opinions might not matter to you, I sure hope they matter to NEVS. Arrogance on top of incompetence is really quite problematic when you’re trying to sell a consumer product, wouldn’t you agree?

        • “And while our opinions might not matter to you”

          Our as in who ?
          I would have to say that those opinions are not shared by me for example.

          • Beakon: I was responding to Tim’s comment to Rafael. Tim wrote “Sorry buddy but your opinion doesnt matter…” To clarify: I am just saying that I hope he isn’t speaking for NEVS by telling someone on a Saab fan site that their opinion doesn’t matter. A company selling products should absolutely care about the opinions of potential buyers. Now, if Rafael doesn’t live in China—-and if NEVS doesn’t intend to sell cars outside of China—-then I guess it doesn’t matter. NEVS can be as deaf as they want to be with people who will never have a chance to buy another new Saab unless they relocate to China.

  13. Oestlund said the 9-3 will be sold in Europe and China initially with U.S. sales possible later. “Saab will again be a global brand, but we will gradually add markets. The U.S. market is important for us and we intend to enter when we see that we have a business case,” he said.

    I wonder what that’s supposed to mean? There will NEVER be a “business case” that will require Saab to sell cars in North America. They can sell in China only. Or they can sell in China and Sweden. If they are paying their expenses and making a profit—-even a small one—–they can linger forever that way. What “business case” is he talking about? If he means the ability to sell cars in one of the most lucrative and competitive car markets in the world—-perhaps where the most money is spent on cars—-that case is already made. Think big Oestland, think big. Start to commit—-don’t be so darn iffy. Let us hear “We will bring Saab back to North America once we’re up and running with Chinese and European sales—-it’s not a matter of if, but a matter of when and we’re determining that.” Take a stand already. Geezus.

    • Angelo, the electric vehicle market is beginning to get very competitive, with nearly every manufacturer announcing plans for their own. I don’t see how NEVS/SAAB will stand out. Why would anyone want to take a chance on these people. Maybe in China, but I’m afraid they are done in North America. I’m looking for a new brand, they can shove it…

      Best of luck to workers in Trollhättan – may you not get screwed over again!

      • I tend to agree with you Baver. If they manage to save Trollhättan, they will have accomplished a lot. Unless they come up with something revolutionary, like a hybrid with four wheel motors, I don’t see how they can reestablish themselves in NA where profit margins on cars are very slim.

        • They can reestablish themselves by making Saabs in China—and selling for less in the U.S. than they’ve sold since the early 1970s (obviously in relative terms). Saab outpriced themselves. This isn’t strictly about thinner profit margins—it’s about product positioning and they (Saab) sucked at that. The perceived value of a Saab was less than they were selling them for. Now, if they can sell Chinese made Saabs for LESS than the perceived value, they’ll find new buyers. The fact that it’s taken this long to have a public presence since the bankruptcy has doomed the brand further. No one seems to get that, least of all NEVS. There was a window of opportunity to get Saab to a COMPETENT, QUALIFIED new owner and the Receivers failed at that in my opinion. Then, there was another window of opportunity to get Saabs cranking out of a factory again as quickly as possible and salvage dealership agreements in some form—-NEVS failed at that—or it just wasn’t important to them. And I’m not only talking U.S. here. A friend of mine has a cousin who has a Muller era 9-5 and understandably, is terribly upset—-and is a mouthpiece for telling people not to ever trust Saab, never to buy one. He’s had problems with his car and zero support. Going out of business like this is a mess. Sadly, people charged with making the best of it—-made it worse.

          • Well I hope they make a cheap Chinese Saab for you Angelo. I will be looking elsewhere.

            • My vision for Saab would allow me to buy the “cheap” Chinese small hatchback and you could lay down 60K for a Made In Sweden Mullermobile with no sunroof David. They could make Saabs in both countries. Multi-national, big, bold, ambitious—-and actually, if things broke right, maybe they’d someday put a plant in the U.S. (Please God, in a right to work state), and you could get an American made version. By the way—-do you think Apple products made in China are “cheap” and not worthy of your purchase?

      • Well, if that’s the writing on the wall, I guess we’ll all be moving to another room—-or another house. It’s really disappointing. And frankly speaking, it’s pure insanity to believe that there’s a long term future for Trollhattan if the primary goal is selling cars in the fastest growing market, China, with a representation in Europe. That means they will pacify people in Sweden for a while, making the old platform 9-3. The new factory in China will make the Phoenix platform cars, for China. Trollhattan will be put back in mothballs when China is up and running. These people might not be the brightest bulbs on the tree, but I’m sure they understand profit—-and the notion that cars will be made in Sweden, for Chinese people to buy—long term—-is a laughfest, it truly is. The only way Trollhattan would be in play for the long term future is if Saab has a global presence—-needing 100,000 cars for North America and more for other places—-several lines—-perhaps a less expensive series made in China and the higher end, larger cars kept in Sweden, where many consumers feel more confident with their purchase. But again, if this is primarily China, with some European smattering since the brand is European—-Trollhattan will be phased out when the Phoenix arrives. Darn those damn Receivers.

  14. So when is the new Saab going to make an announcement that the rumours of their demise are premature and will have a model to show and a date to kick off? All of the mainstream auto media are moot about Saab and any news.

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