A city in eastern China has agreed buy a stake
in a consortium that plans to make electric vehicles using the
Swedish carmaker Saab's name, the group announced Tuesday.
The investment arm of the city of Qingdao, Shangdong province, was initially to invest 2 billion kronor (305 million dollars), said the consortium, National Electric Vehicle Sweden AB (NEVS).
Qingdao was set to own a 22-per-cent stake in NEVS, which last year bought the main assets of Saab Automobile and its subsidiaries Saab Automobile Powertrain and Saab Automobile Tools. The sum has not been disclosed.
"The deal gives financial capacity, which is an important step in implementing the business plan NEVS has," NEVS board chairman Karl-Erling Trogen said.
A feasibility study was also to be launched with Qingdao, which has a strategic port and is a potential market for NEVS vehicles.
NEVS has said production of future vehicles was envisaged at Saab's main plant in Trollhattan, in south-west Sweden, with the first electric vehicles to be launched in 2014.
Most Popular Stories
- Cantwell Targets Gender Gap in Small-Business Loans
- Chrysler Gets Nod as a Top Employer for Hispanic Women
- Hispanic Entrepreneurs Set Pace in Florida
- Perry's Lawyers Try to Close Abuse Case
- South Korea's Kia to Invest $1 Billion in Mexico
- FBI Probes JPMorgan Hack
- What's the Law for Kids at Gun Ranges?
- Apple Loses Bid to Block Sales of 9 Samsung Phones
- Mario Lopez Inks New Clear Channel Deal
- Health-care Deal Aids Port Contract Talks