Evergrande woes in China lead to job cuts in Sweden | Taiwan News
TAIPEI (Taiwan News) – The Evergrande crisis in China has caused hundreds of Swedes to lose their jobs, as the company continues to sell off its assets.
National Electric Vehicle Sweden AB (NEVS), a unit of the company’s electric vehicle arm, has laid off 300 workers in recent weeks, according to a Bloomberg report.
“The Evergrande situation triggered the decision,” said Stefan Tilk, CEO of NEVS. “It has become necessary, since Evergrande can no longer fund us.”
The Chinese real estate developer is fighting for his life as he faces more than US $ 300 billion (NT $ 8.37 trillion) in liabilities.
In August, NEVS management told nearly half of its 670 employees that the company couldn’t afford to keep them. The NEVS factory is based in the Swedish city of Trollhattan, in a factory that was once owned by Swedish automaker Saab.
NEVS is trying to find new funders to maintain itself.
“I act like things aren’t going well with Evergrande,” Tilk says. “Therefore, we have started discussions with new owners or project financiers. “
NEVS is not the only electric vehicle operation in Evergrande in difficulty.
Evergrande’s New Energy Vehicle Group, listed on the Hong Kong Stock Exchange, is also struggling to survive. The company’s shares fell more than 9% last Monday (September 27) after admitting it was struggling to pay suppliers, according to a CNN report.