National Electric Vehicle Sweden (NEVS) says it has axed contracts with around 100 consultants as it continues to seek alternative funding following a cash crisis.
The automaker stopped production last month just a few weeks after starting deliveries of its Saab 9-3 models to dealers, following what it says were contractural issues with a shareholder.
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“We have a situation where we did not have enough liquid cash to pay the debts to our suppliers so we have to find short-term solutions from loans,” a NEVS spokesman in Stockholm told just-auto.
“We have a stop in production and we have ended contract [s] with a little bit more than 100 consultants, mainly engineers.
“We have ongoing dialogue with two Asian OEMs, but we can’t name them. That is something we already from the beginning stated – we will cooperate when it comes to the Phoenix platform development with other companies.”
The automaker previously said Nevs’ main owner, National Modern Energy Holdings (NME), has since the beginning of the year decided to enter into the position as the sole financier of the company.
Salaries for the 600 or so employees who remain at NEVS will be paid on 25 June, while the company is highlighting its significant assets as a secure basis with which to attract finance.
“The company’s assets [are] by far more than the debt,” said the NEVS spokesman. “The ground, the buildings, the tools et cetera. We have to try to get loans – we can use fixed assets to get loans.”
NEVS also poured cold water on the likelihood the Swedish government might become involved in the struggle to secure cash, with Stockholm having previously been reluctant to step in with the former Saab.
“We have contacted them of course, but I don’t think there are any possibilities they can finance it,” said the spokesman I don’t think it allows that way in the European Union.
“Of course we want to do things right and today we can’t pay our debts – we are the first to say we are sorry for that.
“We have good dialogue with suppliers – we need them in the future as well as we need them today. Of course we understand our relation is stressed by the fact we don’t pay.”
