Sun Has Yet To Set For Saab As New Investors Are Sighted
Industry News
Indian car manufacturer and all round conglomerate, Mahindra & Mahindra, have agreed to buy majority shares in cash stricken Saab in what is being unofficially billed as a joint investment with current Chinese owners NEVS (National Electric Vehicle Sweden). NEVS purchased Saab from Dutch supercar maker Spyker NV after GM sold its control stake and ran for the hills. NEVS promised to turn Saab into a Plugin-Electric car maker, the market for Plugin-in electric vehicles is being accelerated by the likes of BMW, Mercedes and Mitsubishi and more manufactures are following suit. NEVS EV product strategy looked unpromising at the time but the market has changed, NEVS hasn’t confirmed the buyer but according to various sources the deal has been all but completed. NEVS only moved to confirm that an Asian manufacturer was in talks on a possible joint venture to produce a new generation of Saab cars. Talks with an OEM partner (rumored to be DongFeng) is also continuing and until a finalized deal on a Joint Venture can be achieved with this partner, both parties are now preparing a development contract in which NEVS will work to develop technical solutions for this Chinese partner. NEVS has failed to deliver upon its business plan, its struggled to pay suppliers and has sought protection from creditors. NEVS target for Saab was an annual production of 120,000 units per year by 2016, currently the assembly lines remain inactive. If the rumors are correct then Mahindra & Mahindra may be willing to cover “idle” costs until the agreement is completed, that won’t be until February 2015 and it is estimated that 5 billion euros a month is required to keep Saab ticking over. NEVS revealed one of its shareholders failed to commit on a planned $155 million dollar investment and this kick started the current Saab malaise.  Saab-95-Sunset
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