NEVS Secures Qingdao Investment to Build Saab-Based EVs in China
National Electric Vehicle Sweden has agreed a 2 billion SEK investment with Qingdao, giving the city a 22% stake and a role in future Chinese EV production.
National Electric Vehicle Sweden (NEVS), the Chinese-owned company that acquired most of Saab’s assets after the Swedish carmaker’s bankruptcy, has signed an investment agreement with the Chinese city of Qingdao. The deal, announced in early January 2013, will see Qingdao’s investment arm, Qingdao Qingbo Investment, inject 2 billion Swedish crowns (about $307 million) into NEVS in exchange for a 22 percent shareholding.
The arrangement is designed to accelerate NEVS’s plan to manufacture and sell electric vehicles in China. NEVS stated that it will initially ship cars from its Trollhättan plant in Sweden to Qingdao, before considering local assembly in China once capacity at the Swedish facility is reached. The eventual goal is to establish a new factory in Qingdao, reflecting the city’s commitment to supporting the development of new energy vehicles.
NEVS’s Chinese Strategy and Saab Revival Plans
NEVS, which is wholly owned by National Modern Energy Holdings led by Chinese-Swedish businessman Kai Johan Jiang, is positioning itself to capitalise on China’s drive for electric mobility. The company plans to relaunch the Saab 9-3, both as a conventional petrol model and as an electric vehicle, targeting the rapidly growing Chinese EV market. NEVS’s first electric car is scheduled for launch at the start of 2014, with the city of Qingdao set to play a key role in distribution and future production.
Qingdao’s investment reflects a wider Chinese government push to promote electric vehicles and reduce urban emissions. For NEVS, the partnership offers access to local networks, government support and a potential customer base in one of China’s major port cities. The company’s strategy mirrors moves by other global manufacturers aiming to establish a foothold in China’s expanding EV sector. For context on previous Chinese involvement with Saab, seeGM Still Opposing Saab China Deal.
Ownership and Future Prospects
The investment leaves NEVS majority-owned by National Modern Energy Holdings, with Qingdao as a major minority shareholder. The Swedish operation remains central to NEVS’s manufacturing plans, but the Qingdao partnership is expected to become increasingly important as Chinese demand for electric vehicles grows. NEVS has not provided a timeline for when the transaction will be completed or when local production in Qingdao might begin.
- NEVS is targeting Chinese EV buyers with both electric and conventional Saab 9-3 models.
- The company intends to use the former Saab plant in Trollhättan for initial production.
- Qingdao’s involvement could lead to a new NEVS factory in China if demand materialises.
