SWEDEN: Mahindra & Mahindra silent on NEVS speculation
NEVS' Trollhatten production at standstill for month
The Swedish operation has been at a production standstill for four weeks, following contractual shareholder issues and is racing to secure funding to pay salaries beyond this month's due date of 25 June.
"We don't comment on market speculation," a Mahindra & Mahindra spokesman told just-auto from India, while a further, unnamed, Asian investor is also believed to be interested in the Saab 9-3 producer.
Last week, NEVS told just-auto it had laid off around 100 consultants, but still had some 600 staff on its books, who would be paid for June.
Of more pressing concern may be the reaction of suppliers to the news of NEVS' difficulties, which evoke that of the former Saab two years ago as it struggled to pay its component producers.
"They [investor] have not fulfilled their obligations towards our main owner to finance our business," a NEVS spokesman told just-auto from Sweden."
NEVS confirmed it was in discussion with two Asian OEMs and although declining to name them, added: "We are now in a position where we would like these dialogues to be finalised.
"Hopefully, in a contract deal soon."
The automaker previously said NEVS' main owner, National Modern Energy Holdings (NME), has since the beginning of the year decided to be the sole financier of the company, while it also highlights its assets such as buildings and tools as a means to obtain future finance.
"What we have said is we hope to see a result of dialogue during June, but it could well be July," said the NEVS spokesman.
"We have enough money to pay our employees for June."
The automaker acknowledged the situation of not being able to pay its suppliers was causing relations with them to be "stressed."
Mahindra & Mahindra Limited (M&M) is a diversified company. It operates in various businesses such as automotive, farm equipment, IT services, financial services, steel trading and processing, infrast...
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