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August 12, 2014

SWEDEN: NEVS production staff at home as supplier woes continue

National Electric Vehicle Sweden says some of its 250 production employees are at home following further struggles with short-term financing.

National Electric Vehicle Sweden says 250 production employees are at home following further struggles with short-term financing.

Staff only recently returned to the Saab-producing parent after summer holidays, but a petition filed with Swedish authorities from a supplier, today (12 August) has seen many without production work.

“The vacations ended this weekend, so when they came back we informed them [production staff] we still have things to do in the factory,” a NEVS spokesman told just-auto from Trollhattan in Western Sweden.

“So everyone comes back every Monday, but during the stop of production they stay at home and wait for new information.

“Those 250 people are being paid – they are at home with wages. The petition to the Court was today and they made a decision to have a negotiation on 8 September. It is the Court here in the area [of] Vanersborg.”

In June, NEVS said only some component makers were being paid as it looks to secure future cash injection following contractual issues with a shareholder.

Speculation centred around Mahindra & Mahindra as well as Dongfeng to be potential suitors, while the situation spooked NEVS’ three unions into holding a joint meeting in Stockholm to discuss the issue.

NEVS has been in dialogue with “two large OEMS,” with the spokesman noting: “The two companies [with which] we are in dialogue are fully aware of our situation. That it takes some time to complete a cooperation is a sign they are very serious.

“[We are] the first to say we are sorry about that [liquid] – situation – we do not have enough liquid cash to fulfil our obligations towards our suppliers.”

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