Are financial problems brewing again for Swedish automaker Saab?
National Electric Vehicle Sweden (NEVS) has released a statement that production on the 9-3 has been halted as one of NEVS’ shareholders, Qingbo Investment Co. Ltd. has not fulfilled its contractual obligation to finance the operations. In addition to stopping production, the company has had to reduce its workforce, but remains positive that long term financing will be secured.
NEVS’ main owner, National Modern Energy Holdings Ltd. (NME) has become the sole financier of the company and recently transferred a large sum of funds along with making additional investments in China, such as the new battery factory and the technology development center. The company iterated that its assets are significantly higher than its debt and NEVS “is planning to use short term credits to cover all outstanding and near term obligations until the long term financing is secured.”
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[Source: The Wall Street Journal]
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