Koenigsegg announced the formation of a new joint venture with Chinese-back New Electric Vehicle Sweden (NEVS), the company formerly known as Saab.
According to Koenigsegg, the new strategic partnership will enable the development of electrified vehicles in slightly higher volumes, as well as help them grow bigger in the hypercar segment.
NEVS is investing 150 million euros (around $170 million in current exchange rates) into this new partnership, taking at the same time a 20 percent minority stake in Koenigsegg’s parent company and a 65 percent stake in the joint venture, while Koenigsegg obtains the remaining 35 percent stake by contributing its intellectual property, technology licenses and product design.
It’s not the first time the two companies have worked together but their new arrangement will allow Koenigsegg to access NEVS’ production and engineering facilities in Sweden as well as its wide dealership network in China.
NEVS’ majority owner is Chinese property developer Evergrande, which also happens to own a controlling stake in Shanghai CENAT, a battery car maker in China, as well as a 32 percent stake in Faraday Future.
“Koenigsegg is breaking new ground, capitalising on our unique technology, performance track record and market position to explore and develop new products,” said Christian von Koenigsegg, Founder and CEO of Koenigsegg. “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.”
“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,” said Kai Johan Jiang, Chairman of the Board of Directors at NEVS AB. “We have both competencies and facilities to support Koenigsegg on their journey forward, something we look very much forward to.”