National Electric Vehicle Sweden (NEVS) has invested 150 million euros (approx. £131 million at the current exchange rate) to acquire a 20-percent stake in the parent company of Swedish hypercar builder Koenigsegg. The companies say that they intend to develop vehicles together and put an emphasis on electric models.
NEVs and Koenigsegg don't provide much specific information about what they are creating, but the businesses describe the undertaking as "partnering up to develop a product for new and untapped segments, leveraging both of the companies’ strengths."
As part of the deal, NEVS and Koenigsegg are also forming a new joint venture company to focus on intellectual property, technology licenses, and product design. NEVS has 65-percent ownership of this business, while Koenigsegg controls the remaining 35 percent.
One of Koenigsegg's major benefits from the arrangement is gaining access to NEVS' factory in Trollhättan, Sweden. The hypercar firm might also be able to take advantage of its new partner's distribution channels in China, which could open up new sales for the automaker there.
Swedish car fans might notice that this partnership has a fascinating historical footnote. In 2009, Koenigsegg took a very serious run at buying Saab from General Motors, but the deal fell through. Later, China's National Modern Energy Holdings Ltd and Japan's Sun Investment LLC partnered to create NEVS, and the business bought Saab in 2012. Following a bankruptcy, Saab AB, the defense contractor best known for its fighter jets, revoked NEVS' right to use the brand name and griffin logo. With this new partnership, Koenigsegg finally established some kind of connection with Saab as an automaker, even if it didn't go the way the hypercar maker wanted 10 years ago.
Swedish car makers NEVS AB and Koenigsegg AB are together forming a strategic partnership, enabling the development of parallel vehicle models in slightly higher volumes with emphasis on electrification, as well as strengthening growth opportunities in the hyper car segment.
NEVS is making a capital injection of EUR 150 million, thereby taking a 20 percent minority stake in Koenigsegg’s parent company.
Additionally, the parties are forming a joint venture to expand into new market segments where NEVS AB is contributing USD 150 million in starting capital for a 65 percent stake and Koenigsegg obtains 35 percent by contributing primarily with intellectual property, technology licenses, and product design.
The partnership will deepen an already existing collaboration between NEVS and Koenigsegg, creating synergies between their geographical footprints, experiences and competencies. Koenigsegg already has a distinguished unique market position for hyper cars, and through the additional joint venture NEVS and Koenigsegg are partnering up to develop a product for new and untapped segments, leveraging both of the companies’ strengths.
Through NEVS production facilities in Trollhättan, Koenigsegg will access additional capabilities as well as benefiting from the extensive automotive knowledge in the region, whilst maintaining their centre of excellence in Ängelholm.
Alongside NEVS capacity for production in Trollhättan and China, NEVS through its majority owner Evergrande, has a wide distribution platform and channels through ownership in one of China’s largest car retailers. Last week, Evergrande announced the acquisition of 58.07 percent in automobile battery maker Shanghai CENAT New Energy Co Ltd, a $156 million deal.
“Koenigsegg is an enticing company developing advanced cars with unique technology and with a customer base that is one of a kind. To be able to expand our investment in the Swedish automotive industry through a company that we know and have an established relationship with, is an important step for us. We have both competencies and facilities to support Koenigsegg on their journey forward, something we look very much forward to”, says Kai Johan Jiang, Chairman of the Board of Directors at NEVS AB.
“Koenigsegg is breaking new ground, capitalising on our unique technology, performance track record and market position to explore and develop new products. This partnership will create the best conditions for Koenigsegg to accelerate growth in the hyper car market, as well as enabling us to break ground into an untapped market segment together with NEVS. We very much look forward to working together with NEVS to develop products that ensure a sustainable future”, says Christian von Koenigsegg, Founder and CEO of Koenigsegg.
January 29, 2019