National Electric Vehicle Sweden (NEVS) says it has slashed its monthly operating budget from SEK200m (US$27.7m) to just SEK35m, as it continues its reorganisation period.
This week, NEVS secured permission from Vanersborg District Court to allow administrator, Lars Eric Gustafsson, to carry on the reorganisation, which has also seen the Saab producer axe most of its workforce.
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“We have lowered our costs from around SEK200m to SEK35m a month, because we have laid off 155 people, we stopped production and as contracts with more than 100 consultants on engineering have stopped,” a NEVS spokesman told just-auto from Sweden.
“Financing is coming from the owner, credits and the possibility to sell [unnamed] assets. We don’t sell things that are of strategic importance.”
Between 50 and 100 people attended the reorganisation continuation meeting, representing direct and indirect suppliers, some of whom may have memories of the protracted demise of the former Saab Automobile, which resulted in the loss of 4,000 jobs in Trollhattan.
The NEVS spokesman insisted the lengthy negotiations surrounding any potential takeover by two interested buyers – rumoured to be either Dongfeng or Mahindra & Mahindra – were not unusual as due diligence would take some time.
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By GlobalData“The situation NEVS is in economically, the negotiations are not taking [an] especially long time,” said the automaker’s spokesman. “We started this in the very beginning of the year, so taking eight to ten months is not so long.
“It is no particular reason why they take time. It is just because it is complex and very much information to go through.”
Both interested parties have different approaches to any potential takeover of NEVS, with one wanting to establish a joint venture, especially for technical development of the Phoenix platform, while the other wishes to become the main owner.
NEVS says it is continuing to supply some body work to Orio, formerly Saab Automobile Parts.
The reorganisation period will last until 29 November.
