NEVS (National Electric Vehicle Sweden) is a Swedish electric car company that acquired the assets of bankrupt automaker Saab in 2012. The company has been struggling financially for some time and has now announced that it will halt all activities and go into hibernation mode. Article in SvD will analyze the reasons behind the shutdown and the potential implications for NEVS and the Swedish automotive industry.
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The collapse of the idea of electric Saab cars, without the SAAB logo on the hood
NEVS was created with the aim of producing electric cars based on Saab’s technology. However, the company has faced a number of challenges since its inception. One of the biggest issues has been securing funding for its operations. NEVS is owned by the Chinese Evergrande Group, which acquired a majority stake in the company in 2019. Evergrande has been experiencing financial difficulties in recent years, which has had a knock-on effect on NEVS.
Laying off almost all of its 340 employees in Trollhattan
Today, February 23 2023, NEVS announced that it was putting all activities on hold and laying off almost all of its 340 employees. The decision came after negotiations with Evergrande and other investors failed to secure the necessary funding to keep the company operational. NEVS cited the need to reduce costs and clear supplier debts as reasons for the shutdown.
Another unsuccessful attempt to save a company in January
In January, Nevs announced that they had new secret owners. But it wasn’t quite right. For DN, the fired CEO Stefan Tilk tells that the deal was not completely finished.
– “I took my CEO responsibility to complete the deal, but was stopped by Evergrande’s top management. Then I said that then you can fire me because I have to save the company. Then they fired me.”
The shutdown will have a significant impact on the local economy
The announcement has been met with sadness and concern from NEVS employees and the wider community in Trollhättan, where the company is based. The shutdown will have a significant impact on the local economy, as NEVS is one of the biggest employers in the area. The company’s closure will also have wider implications for the Swedish automotive industry.
Sweden has a long history of automotive manufacturing, and the country is home to some of the world’s most innovative car companies. The industry is a key contributor to the Swedish economy, and the closure of NEVS is likely to have a ripple effect throughout the sector. The shutdown is a reminder of the challenges faced by electric car startups, which require significant investment and a supportive regulatory environment to succeed.
Despite the challenges, there are still reasons to be optimistic about the future of the electric car industry. Governments around the world are increasingly supportive of the transition to electric vehicles, and consumers are becoming more aware of the benefits of electric cars. There are also a number of established players in the industry, such as Tesla, that are continuing to invest in research and development.
In the short term, however, the closure of NEVS is likely to have a significant impact on the Swedish automotive industry. The shutdown will be a blow to the country’s reputation as a hub for innovative car companies, and it will also have a negative impact on the local economy. The Swedish government will need to work closely with the automotive industry to ensure that the country remains a leader in electric vehicle manufacturing.
In conclusion, the closure of NEVS is a reminder of the challenges faced by electric car startups, which require significant investment and a supportive regulatory environment to succeed. The shutdown will have a significant impact on the Swedish automotive industry, and it will be important for the government and industry stakeholders to work together to ensure that the country remains a leader in the field.