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Saab to setup shop in Qingdao, China

 Saab to setup shop in Qingdao, China
Saab 9-3 facelift - 23.2.2011

Primary production still slated for Trollhättan

Saab's parent company, National Electric Vehicles Sweden (NEVS), has entered into a long term partnership with the Chinese city of Qingdao.

As part of the agreement, Qingdao will invest 2 billion SEK ($304 USD / €233 million) into NEVS in exchange for a 22 percent stake in the company. Qingdao will also become a key hub for Saab China as cars will be shipped into the city's port. When production at the Trollhättan factory reaches capacity, NEVS will establish a new manufacturing facility in Qingdao.

In a statement, NEVS Chairman Karl-Erling Trogen said "This agreement provides financial resources that form an important contribution to enable implementation of the NEVS business plan."

As we have previously reported, Saab is expected to resume production of the 9-3 in the second half of this year. It will eventually be followed by an electric vehicle which is slated to be launched in early 2014.

Source: NEVS

Qingdao to become NEVS’ strategic gateway to China for Saab cars

NEVS has entered a long time partnership with the City of Qingdao in China’s Shandong-province. Qingdao initially invests SEK 2 billion, obtaining a 22 percent ownership share of NEVS through a directed share issue. Further investments will be made in a joint venture company in China. NEVS is headquartered in Trollhättan, Sweden where product development and manufacturing is located.

Qingdao’s investment in NEVS will be made in successive stages, and provides NEVS with a financially stable investor, as well as a business partner which provides access to a key market. The City of Qingdao has, through its investment company Qingdao Qingbo Investment Co, Ltd, signed a contract with NEVS’ parent company National Modern Energy Holdings Ltd. and with National Electric Vehicle Sweden AB (NEVS).

”This agreement provides financial resources that form an important contribution to enable implementation of the NEVS business plan,” said NEVS Chairman Karl-Erling Trogen.

”Qingdao is a long term strategic partner in China, which also provides us with a large customer,” said Kai Johan Jiang, CEO and main owner, NEVS.

”Vehicles based on new energy sources are the future. Qingdao wants to take an active part in this development,” said Zhang Xingi, Mayor of Qingdao.

Trollhättan is the NEVS headquarters, with product development and vehicle assembly. China is a key market with great potential demand for Saab vehicles. Qingdao is set to become the hub for NEVS’ efforts in the Chinese market, which means that exports will be shipped through the Port of Qingdao, strategically located on the Chinese East Coast. As production at the Trollhättan plant will reach capacity, a complementary manufacturing facility will gradually be established in Qingdao.

The municipality of Qingdao has a population of nine million, while close to 100 million people live in the Shandong province. The City och Qingdao is a large buyer of passenger cars, including both conventionally fuelled and electric vehicles. The NEVS investment is an important step to secure the region’s access to electric vehicles, and to build an industrial structure where the vehicle industry, including EVs, is key for the future.

As part of the agreement, a feasibility study is now conducted to guide the future partnership.

On August 31, 2012, NEVS acquired the main assets of the Saab Automobile bankruptcy estates, and currently studies the opportunity to commence production of the present Saab 9-3 model in the second half of 2013. The first electric vehicle model is planned for launch in early 2014. In October 2012, a sister company of NEVS in China opened a plant in Beijing producing high-performance batteries for automotive applications.

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Comments (9)

 9TNine 9TNine
Hope Saab does well in China. It would be sad to lose Saab, and I look forward to seeing a whole range of long-wheelbased Saabs...!
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January 9, 2013 5:14 am
 pzxpjy pzxpjy
Well, I am a genuine fan of Saab from China, a serious enthusiast since 1997 when first-gen 9-5 came out, but I will never investigate my money in this Chinese-ruined Saab.
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January 9, 2013 1:40 am
 AlexandruStoian AlexandruStoian
I still have a hard time believing that Volvo and Saab are now owned by the Chinese. How much things have changes in the industry.
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January 9, 2013 1:19 am
 ATS-V ATS-V
Yeah...But it will never be the same as the original...how sad the Chinese have Saab and not any other European company?
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January 8, 2013 6:15 pm
 NicolaiOlufHemdrup NicolaiOlufHemdrup
Awesome that Saab is returning, with a all new buissnes concept
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January 8, 2013 4:34 pm