Saab 9-3 at halt as Court mulls new application

Saab 9-3 at halt as Court mulls new application

National Electric Vehicle Sweden (NEVS) says it has applied for a three month extension to its reorganisation amid speculation Indian automaker Mahindra & Mahindra is waiting in the wings with a bid.

The Swedish manufacturer laid off 155 people in October in a bid to slash monthly costs from SEK200m (US27m) to just SEK35m, while also stopping contracts with more than 100 engineering consultants.

The latest application, submitted by NEVS administrator Lars Eric Gustafsson, will now be considered by Vanersborg District Court and is the latest chapter in a saga which has seen the Saab brand continue to exist only in limbo state.

"NEVS has submitted an application to the District Court requesting the company reorganisation shall continue for an extended time period of three months," said a statement from Gustafsson.

"As administrator for the reorganisation, I hereby recommend the District Court to approve NEVS' request.

"The conditions are good to achieve a successful reorganisation of NEVS within the additional time period and thus there are special causes to grant the prolongation in accordance with NEVS' request."

At the previous reorganisation continuation hearing, between 50 and 100 people attended representing direct and indirect suppliers and while it is not yet clear how many were at the latest meeting, Vanersborg District Court confirms the reorganisation request.

"Negotiations with the two major OEM manufacturers, both located in Asia, have continued during the reorganisation period," said Gustafsson.

"In the past weeks, negotiations have intensified considerably, especially with the OEM player, which intends to become the major owner in NEVS."

NEVS in Trollhattan was not immediately available for comment.

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