NEVS evaluating business plan during summer

NEVS evaluating business plan during summer

National Electric Vehicle Sweden (NEVS) says it is still mulling the future business plan for production in Trollhättan as it announced plans to construct a second factory in China with new investment.

The Swedish automaker unveiled it had secured the backing of Tianjin Binhai Hi-tech Industrial Development Area (THT), in conjunction with the Beijing State Research Information Technology Company (SRIT), with both partners eventually holding around 30% of the Swedish business.

Specifically, THT will plough US$200m into the company, with the majority of this going to build a new site in China within two years to produce electric vehicles.

"Trollhättan will be the basis for the global market," a NEVS spokesman told just-auto from Sweden. "Tianjin will be the base for China and near countries to China. When it comes to NEVS' own production in Trollhättan, we are now during the summer developing the new business plan.

"Perhaps we can [say] more about that after the summer. That requires more financing. In China, let's say we can probably have so much of the production ready in one or two years, that there could be assembly of cars in China.

"For example, in Trollhättan we can build body in white and have assembly in Tianjin [although], that is not finalised."

The first car produced in the plant in Tianjin will be an electric vehicle based on NEVS technology, followed by an EV and portfolio of battery electric vehicles and EVs based on NEVS' new vehicle architecture.

"Tianjin has a long automotive history and there is an extensive supplier base we could address, so that is a very strategic area," noted the NEVS spokesman. "In Tianjin, we will [have] two joint ventures, one for production and the other for R&D.

"A majority part of future investment will be made in the production plant within the joint venture. Trollhättan will always be NEVS headquarters for development of new product. What we aim for is cooperation to start doing electric vehicles for the Chinese market."

Tianjin borders Hebei Province and Beijing Municipality with a population of 15m. A development plan involving Beijing, Tianjin and Hebei Province was approved by the PRC central government to promote regional integration with priority on traffic management, environmental protection energy security and industrial upgrades.

Tianjin Binhai Hi-tech Industrial Development Area, where the future NEVS new energy vehicle factory and R&D joint venture will be located, is one of the national hi-tech industrial parks which have attracted multinationals to invest and manufacture.