So NEVS have completed the transaction to purchase the remaining assets from Saab’s estate. I feel pleased that some friends in Trollhattan – those that haven’t taken jobs elsewhere already – have a chance to do something on Saab’s premises once again.
I don’t really have any questions just yet about the specific product that NEVS will build. I guess we’ll find out what it looks like, how it drives and how comfortable it is, all in good time.
I do have two fundamental questions about their business plan, however:
Why would NEVS consider developing and building their vehicles in Sweden in order to sell them in China? Given the difference in labor costs and the tariffs on vehicles brought into China, it makes no economic sense. Is that really their plan?
Why would NEVS spend any money bringing out an electric car based on the Saab 9-3? Why not just develop the Phoenix platform they’ve bought rights to? First, you’re spending big money on a platform that will be outdated by your own product in the near-medium term. And second, everyone knows that your first product will soon be outdated, and unless they’re in a hurry to spend a bundle of money on inferior technology, they’ll wait for the better product that’s supposed to come shortly thereafter.
I hope someone in the Swedish press has the good sense to get firm answers to these questions because until they’re answered, there are some big holes in what’s been publicly disclosed as their business plan.
Call me skeptical, but willing to learn.