SWEDEN: Saab 'reviver' NEVS to axe 200 workers

By Graeme Roberts | 24 September 2014

Nevs plans include an EV version of the Saab 9-3

Nevs' plans include an EV version of the Saab 9-3

Nevs, which has been attempting to revive Saab car models, said it would lay off up to 200 employees due to lack of work, because "the decision to re-start production will be further delayed".

The would-be automaker has kept on its permanent workforce for production since output was stopped at the end of last May this year.

"The reason for this has been that the company would be ready to quickly start up production, upon such decision," Nevs said in a statement.

"The prerequisites for making a decision to start up production are to have long-term secured funding and a business plan that has been worked through together with a new majority owner.

"The ongoing discussions on collaboration and ownership structure, which [have] not yet resulted in a binding agreement, [indicate] that the decision for a start-up of production will take time."

It has now decided to make the workforce redundant and will hand in a notice of intention to lay off up to 200 employees to the Swedish Public Employment Service.

The terminations will take place this month in order, Nevs said, "to rapidly reduce the company's costs during the reorganisation period".

This is a step in the reorganisation plan the administrator will present to creditors at a meeting on 8 October.

Nevs added it will retain some workers to keep the plant in good condition, ready for new production, if such a decision is taken, and to continue developing new products.