Press Release: The District court approves Nevs’ application for reorganization

The District court of Vänersborg, Sweden, today August 29 approved the application for reorganization from National Electric Vehicle Sweden AB.

The District court has appointed Mr. Lars Eric Gustafsson, Attorney at Hamilton law firm in Stockholm, as administrator during the reorganization period.

34 thoughts on “Press Release: The District court approves Nevs’ application for reorganization”

  1. I just read on that SAAB AB has revoked the right to use the SAAB brand name, so NEVS will no longer be allowed to call their cars SAAB anymore.

    • Depending upon the agreements between Saab AB and NEVS, this may or may not be possible without court approval. The right to use the Saab name is a major asset and a bankruptcy judge would not easily let this asset be taken away.

      • This is what I posted on Swadeology about brand name:
        My sense (hopefully) is that this is just a legal maneuver on SAAB AB’s part to protect the name and make sure that they have a say in what happens during reconstruction and any “sale” of the company. Extending that argument, it may be that they’ve finally had it with these jokers that have drawn Saab though the mud with their amateurish attempt of being an automobile manufacturer, that they are trying to influence the “sale” negotiations to make sure that Mahindra will call the shots after any reorganization along with whatever conditions they want to impose for continuing manufacturing in Sweden.

        • I agree Hugh—-and truth be told, there will be a learning curve for Mahindra too. They are not BMW—we know that. But they are worlds bigger than Vic Muller’s enterprise or NEVS. Bigger, more experience, more money. The slot could be perfect—-not as big as GM (who was never focused on making Saab a success because they had so many other divisions worldwide, particularly in the U.S.). But bigger and more capable than Vic or NEVS. Learning curve? Of course there will be one. Bumps in the road for a lot of reasons. But this might give Saab some much needed stability. I don’t think Mahindra would enter into something like this on a whim or as a quick flip and sell off—-if they buy in, I honestly believe they are in it for the long haul. While it might not be easy, especially at the beginning—-I think Mahindra would rebuild Saab very carefully. It will be their prestige division—-something they will invest heavily in and consider an integral part of worldwide expansion plans. You can bet they will not treat Saab off-handedly as GM did. If Mahindra can step in to save Saab and give Saab the most permanent home it’s had in a long while—-I think much good can and will come of that.

  2. At this point in the game does the name SAAB really mean much? It has been dragged through the mud not only in the automotive press, but through mainstream media over the past several years. If you are trying to re-launch the brand, why not start for scratch?

    Since it appears any future version of the company will be based on the Phoenix, why not brand the the company as such?!?! If you build a quality product that consumers want and market it (this is key!!!) you can survive the change.

    • ‘Phoenix’ brings to mind the failed effort to keep Rover Cars going in the UK by the Phoenix Consortium which bought Rover from BMW for £10 in 2000. They never made a profit and went bankrupt in 2005 after trying to form deals with Chinese car makers. Incidentally, Phoenix never owned the Rover brand. Tata owns the Rover brand currently.

    • Without having an inside contact at Mahindra, I can’t answer that question definitively. But reading the tealeaves, I think that yes, they are a part of this equation. I think what we’re seeing today is being driven by the fact that someone is still interested and by process of elimination, who else might it be? I think Mahindra is interested.

      • I could have come up with an answer that good. No offense Angelo. Both you and I are in the US and we can both give it our best guess from half way around the world.

        How about someone a bit closer to NEVS or Mahindra answering the question?

        • NEVS doesn’t do a whole lot of talking—-not sure if even some of the higher ranking execs at NEVS have a clue as to what the CEO is really thinking. You’re right—-trying to analyze this from North America is a fools game.

  3. If SAAB AB prevents NEVS from using the Saab brand name, but Mahindra takes over (as majority shareholder, and reduce NEVS’ % ownership), then Mahindra can negotiate directly with SAAB AB as far rights to use the Saab name, no ?

      • All they need to do is to agree on what kind of new vehicles are worthy of the SAAB name. Which can infact be quite difficult.
        Here’s an idea: Unless a model is developed and also built in Sweden it can’t have the badge until 9 year since launch. This way other plants around the world could assemble these cars for local markets and carry on doing so as long as there is a demand.

  4. I think some are getting ahead of this,,, Nevs owns the Phoenix,, they may be making moves that has nothing to do with said brand,, Selling tech sharing it etc. Which by the way devalues it. as unique ( who knows what Vehicles may have it). They need money.. Saab AB can’t stop this. The plant, they can etc. Maybe this the only leverage they have against Mahindra’s demands…

    One thing is for certain in my mind If Mahindra doesn’t control the future and isn’t majority stock holder this will die fast as it gets done.

    I am surprised if leaks don’t come forth who is in and who isn’t.

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