The firm said that it was applying for creditor protection to create more time for negotiations.

‘The tripartite negotiations we have with two global vehicle manufacturers are still progressing, but are complex and have taken more time than we predicted. We need additional time to complete the negotiations and reach an agreement. Therefore, we apply for a reorganisation. We intend to fully pay our debts to our suppliers,’ said NEVS president Mattias Bergman.

The request for creditor protection has been approved by the District court of Vänersborg in Sweden, which has appointed Lars Eric Gustafsson, attorney at Hamilton law firm in Stockholm, as administrator during the reorganisation period.

The firm added that it has about 400 suppliers of direct materials and 500 suppliers of indirect materials. The vast majority of these have chosen to await the outcome of the ongoing negotiations. Some creditors have filed applications for an order to pay at the Swedish Enforcement Authority.

According to reports, NEVS has lost the rights to use the Saab name but is renegotiating on this.

The announcement follows NEVS’ unveiling just days ago of a near-production prototype of the 9-3 Electric Vehicle in Sweden, which demonstrates how the final vehicles could work.