NEVS apply for reconstruction (again) – updated (again)

Just as I published the last post saying we won’t have to wait for it too long PV Väst announces that NEVS are at Vänersborg court with a revised Version of their application.

Update 1:
NEVS states that they have secured a loan of 20 million crowns to get through the first 3-4 weeks of the reconstruction. They also stress that the reason for the reconstruction is not to reduce the liabilities to the creditors and that NEVS intens to pay it all in full.

Update 2:
NEVS expects to have an agreement on a development cooperation for the Phoenix platform in place that will generate obe 1 billion crowns of cash for NEVS. That will be enough to pay off the debt of 400 million crowns and fund the company for another year. My educated guess is that this Partner will be Dongfeng.

The deal with a possible new owner has been negotiated for six months now and according to NEVS the board of that prospective owner has decided to fill this deal with life if some last requirements are met. As I see it, this will be Mahindra.

The decision by the court is expected for this afternoon.

13 thoughts on “NEVS apply for reconstruction (again) – updated (again)”

  1. Strange, I thought I read in some Swedish news site that Dongfeng said they had never been contacted by NEVS. Mahindra said “No comments”, which is much more understandable.

    • A chinese reader of SU even posted the original piece of news (in Chinese) here. DongFeng is a name that comes from many sources. You can call it the Chinese car maker if you like. Important is, that this car maker is interested in sign this contract.

  2. Seems that NEVS can now only use the IP they have in the Phoenix platform.
    Will there be so much value in hat in order to save the production plant in Trollhattan?
    The Saab name cannot be used anymore so there is no added value there.
    Of course we have seen several revivals with Saab in the past but never was the situation so that one could not speak about Saab anymore. Now the name to be used is NEVS, and what is that name standing for?
    Wait and see, that is all we can do for the moment and take even more care of the Saabs we do drive in right now.

    I am however in he first place thinking of all the Saab employees who gave their best in doing the good work.
    Hope they can soon see a more stable and foreseeable future for them and their families.

    • For sure. Right now the first priority is just to make it somehow through the month with minimal expenditure. They will need to employ additional people, buy materials, equipement etc. to make some progress later on as they develop new product(s)… hopefully.

      • If we go a step forward..
        50 mil SEK = 5,5 mil EUR. How many internal employees, how many external consultants, external engineering companies, costs for enhancing test facilities, lawyers, toolings, asset costs (building, production line), taxes, insurances,..
        How much is the cost of prototypes?
        Buying back the channel and after sales (ORIO) to benefit from after sales revenues? Or build it up by self? Partnering with ORIO will not generate (big) revenue.
        50 mil SEK a month is a best case calculation and maybe has not all costs in scope. But we will see, the future will tell.
        I don’t like to be seen as a pessimistic voice. I don’t like to see only the positive aspects.

  3. This is getting far too sophisticated for me to follow. I’d have trouble understanding this process if it was in American courts, much less dealing with Swedish law, which I know virtually nothing about (limited to what I’ve learned from Tim). On the surface, this “sounds good” to me. For some reason, it strikes me as positive—like there’s a legitimate plan proposed. Is the plan a long shot and things would have to fall perfectly for it to work? Or is the plan realistic and if approved, could actually jump start Saab and take us to the next adventure with this resilient brand?

  4. I don t know, but it sounds like it won’t be enough money…. Also sounds like Nevs would be in the driver seat.. Also the Phoenix won’t be so unique once other makers get it. Joint License.

    Nevs may be making deals that has nothing to do with the brand name Saab… They may have a new car brand.

    Sounds like a mess,,, also they still would be way short of cash over 5 to 6 years until the new car is ready…..The name Saab may be dead…. Another words nothing we would care about,,, Not sure ,,, 30 to 40 days will tell.

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