NEVS and Dongfeng agree to develop new energy vehicles
National Electric Vehicle Sweden, owner of Saab's assets, has signed a deal with Dongfeng Motor to jointly develop electric and hybrid vehicles for global markets.
National Electric Vehicle Sweden (NEVS), the company that bought Saab's assets following its bankruptcy, has signed an agreement with Dongfeng Motor to jointly develop and produce electric and plug-in hybrid vehicles. The deal marks a fresh attempt by NEVS to establish itself as a player in the green automotive sector after years of halted production and financial setbacks.
The partnership gives NEVS a route back to vehicle production after it stopped building Saab cars in Sweden due to financial difficulties. Dongfeng, one of China's largest carmakers, already holds joint ventures with several global manufacturers and is a shareholder in PSA Peugeot Citroën. The new agreement focuses on the development of so-called "new energy vehicles", a Chinese term covering battery-electric, fuel cell and plug-in hybrid models.
A shift in strategy after Saab production halt
NEVS has struggled to restart Saab production since acquiring the brand's assets in 2012. Production at the Trollhättan plant was halted in 2014 and the company has since lost the right to use the Saab name, following a dispute with defence company Saab AB. This forced NEVS to reposition itself as a supplier and developer of electric vehicles, targeting both Chinese and global markets.
Under the new deal, NEVS will also help Dongfeng develop its own car brand for sale in overseas markets, ensuring vehicles meet regulatory and technical standards for regions such as North America and Europe. No financial details have been released, and the companies have not provided a production timeline.
China's growing electric vehicle ambitions
Dongfeng's involvement with NEVS fits a broader push by Chinese manufacturers to expand their presence in the electric vehicle market, both domestically and abroad. Dongfeng already partners with Nissan, Renault, Honda and Kia in China and has a stake in PSA Peugeot Citroën. The company is looking to leverage NEVS's experience in electric vehicle development and European regulatory compliance as it seeks to grow its own export business.
For NEVS, the agreement offers a lifeline after years of uncertainty and gives it access to Dongfeng's scale and resources in the world's largest car market. The focus on new energy vehicles aligns with Chinese government policy and global trends towards lower emissions and electrification.
