Saab owner signs investment deal with Chinese city of Qingdao image

National Electric Vehicles Sweden AB (NEVS) has signed an investment deal with the Chinese city of Qingdao in order to build and sell EVs in the country.

NEVS is a Chinese-controlled company that has bought most of Saab’s assets after the Swedish company went bankrupt.

According to a statement from NEVS quoted by Reuters, the deal involved a plan for Qingdao, via its Qingdao Qingbo Investment company, to invest 2 billion Swedish crowns ($307.3 million) in NEVS, getting in exchange 22 percent of the shares. A spokesman for NEVS could not provide further details on when the transaction would take place.

NEVS has said it aims to launch its first electric car at the beginning of 2014 and is also considering re-launching the old Saab 9-3 model with a conventional engine. The company plans to ship cars from Sweden to Qingdao port and eventually build a factory in Qingdao, when it will reach full capacity at the former Saab plant in Sweden.

NEVS is looking to make cars for the Chinese market as authorities there are investing heavily in electric vehicles. NEVS is wholly owned by National Modern Energy Holdings, founded and owned by Chinese-Swedish businessman Kai Johan Jiang.