TAIPEI (Taiwan News) – China’s Evergrande crisis has caused hundreds of Swedes to lose their jobs as the company continues to sell its assets.
National Electric Vehicle Sweden AB (NEVS), a unit in the company’s electric vehicle arm, has let 300 workers go in recent weeks, according to a Bloomberg report.
– The Evergrande situation triggered the decision, says Stefan Tilk, CEO of NEVS. “It became necessary because Evergrande can no longer fund us.”
The Chinese real estate developer is fighting for his life as he faces more than 300 billion US dollars (8.37 trillion NT) in debt.
In August, the NEVS management told almost half of its 670 workers that the company could not afford to keep them. The NEVS factory is based in the Swedish city of Trollhättan, in a factory that previously belonged to the Swedish car manufacturer Saab.
NEVS is trying to find new financial backers to keep going.
“I act as if it will not work with Evergrande,” says Tilk. “Therefore, we have started discussions with new intended owners or project financiers.”
NEVS is not the only Evergrande electric vehicle operation that has problems.
Evergrande’s own New Energy Vehicle Group, which is listed on the Hong Kong Stock Exchange, is also struggling to survive. Shares in the company plunged more than 9% last Monday (September 27) after acknowledging that it was struggling to pay suppliers, per year CNN report.