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China’s Evergrande woes cause job cuts in Sweden

Almost half of factory workers lose their jobs as Swedish EV maker seeks new backers

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Kai Johan Jiang, Chairman of the NEVS Board, kisses a car at the company's Beijing headquarters in 2016. (Reuters photo) 

Kai Johan Jiang, Chairman of the NEVS Board, kisses a car at the company's Beijing headquarters in 2016. (Reuters photo) 

TAIPEI (Taiwan News) — China’s Evergrande crisis has caused hundreds of Swedes to lose their jobs, as the company continues to sell off company assets.

National Electric Vehicle Sweden AB (NEVS), a unit of the company’s electric-vehicle arm, has let 300 workers go in recent weeks, according to a Bloomberg report.

“The Evergrande situation triggered the decision,” said Stefan Tilk, NEVS CEO. “It became necessary, given that Evergrande no longer can finance us.”

The Chinese property developer is fighting for its life as it faces more than US$300 billion (NT$ 8.37 trillion) in liabilities.

In August NEVS management told almost half its 670 workers the company could not afford to keep them on. NEVS factory is based in the Swedish city of Trollhattan, in a factory that formerly belonged to Swedish carmaker Saab.

NEVS is attempting to find new financial backers to keep itself going.

“I’m acting as if things won’t be working out with Evergrande,” says Tilk. “Therefore we have entered discussions with new intended owners or project financiers.”

NEVS is not the only Evergrande electric vehicle operation in trouble.

Evergrande’s own New Energy Vehicle Group, which is listed on the Hong Kong stock market, is also battling to survive. Shares in the company plunged more than 9% last Monday (Sept. 27) after it admitted it was struggling to pay suppliers, per a CNN report.


Updated : 2021-11-30 06:30 GMT+08:00