In the midst of falling sales and rock bottom prices, carmakers are doubling down on Chinese production
Still in production Image: Ton Schulten |
China’s National Electric Vehicle Sweden, an entity that holds the assets of bankrupt Swedish automaker Saab, has announced it will spend 1.2bn yuan ($200m) to build an electric vehicle plant in China.
Upon completion, the plant will boast a 200,000 vehicle production capability.
However, it is not clear whether the EVs will be launched under the Saab brand, as Saab AB, a Swedish defence firm that holds the rights to the Saab brand, withdrew permission for NEVS to use it late last year.
NEVS produced a small number of Saab 9-3 models in 2012, which enjoyed modest success, but filed for bankruptcy late last year.
Meanwhile, fellow European carmaker Volkswagen has reaffirmed its commitment to the Chinese market by pledging to maintain current production levels, after the German magazine Spiegel reported it was planning reductions in the region.
Andreas Lampersbach, a spokesperson for Volkswagen AG, wrote in an email that “Volkswagen does not plan to cut production in China”, despite utilization rates falling to 94.3% this year.