Scandinavian automotive supplier body, FKG says its members are optimistic following news of National Electric Vehicle Sweden’s (NEVS) exit from reorganisation.
NEVS entered Court administration on 29 August last year for three months, with that period subsequently extended twice, but the chance to end that situation now makes it potentially easier for the two suitors, believed to be Asian, to conduct any purchase.
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“My view is they are leaving the Chapter 11 situation and go back to a normal company situation,” FKG managing director, Fredrik Sidahl told just-auto from Gothenburg.
“This is a greater chance to close a deal with the two Asian companies. It must be much easier to have negotiation with a buyer if you are in a normal situation and not in a bankruptcy situation.
“It is simple. You don’t want to talk to anyone in a bankruptcy situation, but now they are in control. I think it [deal] has to be closed in two or three months.
“Our members are optimistic – they [NEVS] paid out 60% of the total debt and it is far more than normal in Sweden. The supply industry in Sweden wants another OEM.”
Widespread speculation has centred on Mahindra & Mahindra being one of the suitors, although the Indian company previously declined to discuss any move for the Swedish automaker.
