The news Yesterday of NEVS approaching third parties although they are still in Talks with the two Assian car manufacturers.
Well later yesterday they sent a preliminary reorganisation plan to their creditors, and helped us understand what this Plan B means.
According to their press release:
As a complement to the main track prepares Nevs an action that has the potential to become a leading contract manufacturers and development partners in the other vehicle producers, as the two carmakers Nevs negotiating with are positive. This means putting the company’s assets in the work by taking advantage of the facility also to produce for external customers.
In other words, they are moving in the same direction as SWAN was trying to do on their last days. At that time SAAB Automobile AB created an engineering consultancy to create an added source of income.
Is there a market for that? I work in such an engineering consultancy, and yes the is a big market for that, but only if you can offer solutions to the questions of the car manufacturers. Other people say, you have to convince the OEM that they have a question to the answer you offer them, but this is another story.
Many people may say that doing this, you will sell your USP to other people making your products less unique, but nowadays almost no car manufacturer have a real USP. This is the reason why for example Volvo is not advertising their cars as being more secure than others, but they put the brand and their Swedish roots in the foreground. You see similar effects with other brands.
Will this Plan B really help NEVS survive as a car manufacturer? Time will tell, and according to their reorganisation plan it is only a complementary plan. If Plan A succeeds they would habe an added source of income with Plan B, if Plan A doesn’t succeed they say that the income of Plan B would suffice them to stay afloat.
My personal view on this is that NEVS was not contemplating Plan B till the administrator came on board. He must present a backup plan to the creditors on October 8, otherwise the creditors will not support him a let the reorganisation continue till November 29.
The 29th of November is no special date but the end of a 3 month period since they were granted reorganisation. I don’t know if they can ask then for a further continuation of the reorganisation, or if this is the end, but according to their reorganisation plan they are willing to have an outcome to plan a and plan b till then.
Rough translation of the text.
- Negotiations are underway with OEMs regarding JV / TDC
- Work and discussions with financiers under way regarding NEVS Industrial Services
- Agreement on a new issue in NEVS
- Reorganisation period of 3-month expires on November 29
You can find here the complete reorganisation plan. Although most is written in Swedish, the information on the plans is in English.