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NEVS Granted Bankruptcy Protection, Loses Right to Saab Name

Motor Trend logo Motor Trend 8/30/2014 Kelly Pleskot

China's National Electric Vehicle Sweden (NEVS), which rescued the Saab brand from bankruptcy in 2012, has now itself been granted bankruptcy protection while it raises money to pay off debt.

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The auto company stopped production back in May because it was short on money, owing over $57 million to creditors.

In an earlier announcement, it came to light that the struggling auto firm had lost the rights to use the Saab brand name on its future vehicles. Saab AB, the firm from which Saab Automobile was created in 1990, had the right to cancel its brand agreement with NEVS due to the company's application for creditor protection. However, according to a report from Reuters, NEVS says it has a good chance to renegotiate with Saab AB because of the court's recent approval of a bankruptcy protection plan.

Problems with the Saab brand came to a head in 2011 when the cash-strapped brand filed for bankruptcy after former owner General Motors blocked a key buyout with another Chinese company. When NEVS finally took over the Saab brand, it planned on building electric cars under the Saab name.

2011 Saab 9-4x© Provided by MotorTrend 2011 Saab 9-4x

Now NEVS faces the challenge of securing money to move forward. It is reportedly in talks with two major automakers for much-needed funding.

Source: Reuters

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