NEVS Lays Off 200 In Reorganization Plan

Cameron Aubernon
by Cameron Aubernon

With the Saab name reclaimed by the mothership, a host of financial problems, and no product beyond a 10-year-old platform, what else is left for National Electric Vehicle Sweden to do? If you said, “Tap out,” then you just might see that hand pounding the mat rather quickly.

Reuters reports the automaker has laid off 200 workers due to a lack of work as of late, work that likely won’t be coming anytime soon. NEVS says the move was part of its reorganization plan that will be presented at a creditors’ meeting October 8.

Originally, the workers were retained since production ceased in May 2014 in the hope that financing would soon come its way to restart work immediately. The remaining staff will keep the factory in good condition should NEVS secure the needed financing to resume assembly.

At present, the automaker owes kr400 million ($56 million USD) to its creditors, and is allegedly in talks with two unknown firms — speculation says Mahindra is one of them — to gain a financial jumpstart for an electric variant of the 9-3, currently in the prototype phase.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Voyager Voyager on Sep 29, 2014

    "Saab Unplugged ~ The Last Waltz" Producer: Dr Kervorkian Victor Muller reportedly lost close to 1 billion on Saab (2 billion according to TTAC). What made NEVS think it would be any different? For what it's worth, electric Saabs may even be called more difficult to hit breakeven.

    • SCE to AUX SCE to AUX on Sep 29, 2014

      Yep. I'm amazed at how many people think they can turn a sinking ship any better than the last captain.