NEVS reorganization plan

[nordwulf]

NEVS published a press release and document outlining their plans for the future. Download the 44-page document in English: NEVS (Saab) Reorganisation Plan.pdf

The master plan includes for a manufacturer to become part owner in NEVS or a 50/50 joint venture with another manufacturer, mainly for R&D. Rumors say the other OEM could be either Mahindra or DongFeng but nothing official yet.

It is expected that the reorganization process will be extended till October 29, as suggested by the law firm handling the reorganization. NEVS will present this plan at creditors meeting of 8 October at the Vänersborgs District Court.

From the reorganization document:

Master Plan



Transaction 1: OEM A becomes part owner in Nevs
− OEM A invests in Nevs and obtains a substantial majority ownership through a new share issue.
− NMEH and OEM A want that Nevs shall be a global OEM of conventional and electric premium vehicles based on innovation and design.
− Nevs strengthens its financials since the investment from OEM A is a new share issue in Nevs.

Transaction 2: OEM B and Nevs form an R&D joint venture
− Nevs forms a subsidiary (“R&D JV”) including the IP, TDC buildings, laboratories and engineering assets and owns 100% of it.
− OEM B obtains 50% ownership in the R&D JV by purchasing shares from Nevs and investing directly in the R&D JV.
− Nevs including OEM A and OEM B want that the R&D JV shall be a joint technical development center to find synergies in development, sourcing and production.
− Nevs strengthens its financials since the investment from OEM B mainly is a purchase of shares from Nevs.




The document shows NEVS is planning 4 new models on the Phoenix platform and that's where it gets interesting. Any similarities to existing GM Saabs are just for illustration purposes.



The complimentary plan:

The Complementary Plan (Scenario B) is a complement to the OEM Plan (Scenario A). If the OEM Plan is realized, the Complementary Plan should be run in parallel in order to create more business for Nevs and thereby reduce the financing need. If the OEM Plan is not realized, Nevs will be able to be profitable only from the Complementary Plan.

The Complementary Plan (Scenario B) describes a situation where Nevs functions as a contractor for complete car development and manufacturing. Each business unit is seen as a stand alone unit that contributes to the Nevs group. The press shop delivers both sub contractor jobs and parts for the complete cars being built by Nevs. TDC is performing development work aiming at larger projects resulting in a ramp up period while at the same time balancing with smaller jobs. The laboratories are facilitating both internal and external work.

Highlights of the plan:
• Production volume one shift (the factory can handle up to 200 000 cars/year)
• Start of production 2016
• Several customers in pipeline, whereof a number are prospects for full car manufacturing
− OEM A
− OEM B
− Actor C

Market opportunity for industrial services

The market for modern vehicle platforms and technologies in the emerging countries is increasing. The focus on sustainability is growing strong within the whole industry, and a measure on sustainable development is not just emissions, but quality, durability, safety, etc.
• The demands for alternative propulsion systems are increasing as standards are implemented of emission levels and fuel consumptions. This requires innovative solutions and big investments in both enhancements and new technologies.
• The total market of related engineering services is a multi-billion dollar market.
• Very few, independent companies, can manage complete vehicle development and manufacturing programs. From press shop to complete vehicle, including fullscale lab facilities.

Long automotive experience

• Saab has been developing and producing products on a global market for more than 50 years. A knowledge base inherited by Nevs.
• During the GM period investments and expansion were made at Saab in Trollhättan to fit the GM Global Product Program. As a stand a lone company we can offer products and services to the open market


For more information and details, download the full document partly in Swedish and English: NEVS (Saab) Rekonstruktionsplan.pdf

[nordwulf]

The picture of the Saab 9-3 SH is interesting. Probably just a concept CGI but looks like a nice and clean design. The image is pretty small and lo-res but you still get an idea. What would SH stand for?

[bccz]

SH... maybe sport-hatch?

[nordwulf]

Original post updated with the reorganization plan all in English.

SH... maybe sport-hatch?

Good thinking. It looks a bit like a 3-door notchback.

The press release in English:

Information prior to the Meeting of Creditors at the District Court of Vänersborg October 8

At the Meeting of Creditors October 8 at the District Court of Vänersborg the Administrator Lars Eric Gustafsson at Hamilton law firm will propose that the reorganization should be continued until November 29, 2014.

The Administrator has sent a preliminary reorganization plan to all creditors.

The plan shows that Nevs main track is to finalize the negotiations with the two Asian automotive manufacturers, in which several progresses have been accomplished during the last week.

As an addition to the main track Nevs prepares an alternative action with the potential to become a leading contract manufacturer and development partner to other manufacturers, which the two parties that Nevs are negotiating with think is positive. This will in that case be done by using the company's facility also to produce for external customers.

At the Meeting of Creditors October 8 the reorganization plan will be further presented.

[nordwulf]

Frank Smit at NEVS is still dreaming about big plans for the company. From TTELA:



Smit: "Something out of the ordinary"

TROLLHÄTTAN
Much has to fit for Nevs right now, but the company looks forward anyway.
- Not the same rate as before, but the progress continues, says Nevs Frank Smit, of the circumscribed platform Phoenix.

It is in the recovery plan you can get a hint of the vehicle manufacturer's plans for future versions.

- Under the assumption that our plans go through, this is the products we have in our wish list, says Smit, who is product.

In a sort of timeline finds six Saab variants - visualized with the help of pictures, some of them from Saab Automobile-time and therefore not in question, but that illustrates what you thought in terms of size. A 9-2X for example, may correspond to the smaller sedan, SUV, which Nevs want to do.

- BMW's 1-series've both a regular lågbil and a mini-SUV, the X1 as it is called in BMW language. Such have we imagined there, says Smit.

9-3SH is the working name for the successor to the current 9-3: a. It is relatively happy with the size on the outside, but want to make a bigger interior.

- The interior, especially in the back seat, is not of this future standard. Moreover, it is so that in China - it may sound strange given that Chinese people in general are shorter than Europeans - often have additional requirements on the back seat. It may be a relic from the days when many had chauffeur.

Frank Smit describes the now much publicized Phoenix platform as both a philosophy and a set of building blocks for a variety bilvariationer, with a bandwidth of both dimensions, functions and features, right from the smaller to the larger 9-2 9-5.

- For us, that will be a smaller manufacturer, it is very important to be able to do much with that little, so to speak. We have identified the extremes we want with the building blocks, which it was drawn on during Saab Automobile o'clock. But what Nevs done with Phoenix is ​​that unlike Saab Automobile, where they were content with the ability to offer hybrid cars, we now want to build electric cars. One step further, and it requires some adjustments mainly of the base plate. It will probably take a year and a half to two years before we have a first product.

But, says Smit, the illustration is so far only example of the types of cars you see.

- A new principal owner may not want to do the same platform, which can reverse the order. But the products here has been discussed with the vehicle manufacturers, we are in negotiations with.

Clearly, according to Smit, that the opportunities the Phoenix platform provides is really, really unique.

- Being able to cover the whim of large span, it is really unknown in the automotive world.

How do you work with Phoenix now when you have reconstruction?

- The money is a big limitation. 155 people have just got to leave Nevs, and in the spring went several consultants. Phoenix developed, but not at the same rate as six months ago. But we refine bricks and looking for solutions, says Smit who believe the future after all is bright for the company.

- There goes the way, and it does it even with the supplemental plan. And I see no reason why one needs to exclude the other. To manufacture for others, we have made since the bankruptcy - it was my job from the administrators to ensure that rent lokalera and capacity. We created and strengthened a customer base for such services during the post - and the business is now larger and growing. It completes the checkout, we will show what we can and work with various interesting things and it's also fun.

[Burnsside42]

SH = Sedan Hatchback?