Major problems at NEVS, company activates ‘hibernation plan’

Winter hibernation plan at NEVS

Nina Selander, interim CEO of NEVS, announced on Feb. 23, 2023, the activation of a hibernation plan for the company as a way to reduce all costs, settle supplier debts and avoid bankruptcy. About 95 percent of all workers lose their jobs.

Reduce costs

“It is with great sadness that we inform today that NEVS is going into hibernation, which means we will be forced to reduce all costs and there will be layoffs in all business areas. Our decision comes after our owners – namely Evergrande and our potential investors – were unable to complete negotiations in accordance with our contract.”

Two divisions at NEVS

NEVS had two major divisions before this announcement, namely NEVS Industrial Services and the PONS Mobility Ecosystem. The Industrial Services Division is a full-service provider of automotive engineering, contract manufacturing, testing and related services. Under the name PONS Mobility Ecosystem, the company presented its first generation of autonomous vehicles. Learn more about these two divisions in our extensive background article on NEVS.

Fundamental changes

“While there are opportunities for projects like PONS to be positioned positively within the industry, unfortunately the challenges and decisions that will be made from today are not temporary. This has forced the management team to make fundamental changes within the company by starting with the reduction of all costs and the termination of 320 employees from approximately 340 people who make up the NEVS workforce,” Selander continued.

Six months

Selander added: “At the time of this announcement, negotiations are underway with the corresponding unions to provide all our employees with the support and legal advice for everyone involved in a process that will continue for the next six months.”