Swedish car makers NEVS and Koenigsegg 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 €150 million, taking a 20% minority stake in Koenigsegg’s parent company. Additionally, the parties are forming a joint venture to expand into new market segments where NEVS is contributing $150 million in starting capital for a 65% stake and Koenigsegg obtains 35% 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% in automobile battery maker Shanghai CENAT New Energy Company, 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,” said Kai Johan Jiang, Chairman of the Board of Directors at NEVS.
“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,” said Christian von Koenigsegg, Founder and CEO of Koenigsegg.