China's National Electric Vehicle Sweden has halted output of its Saab car temporarily due to "shortage of funds," according to a company statement.
NEVS said that it doesn't have enough cash to pay outstanding debt currently.
The company resumed low-volume production of the vehicle in 2013 after it purchasing the bankrupt Swedish automaker in 2012.
"The reason is that NEVS' part-owner Qingbo Investment Co. Ltd has not fulfilled its commitment to, when necessary, finance NEVS' activity," it said in a statement, according to Reuters. "NEVS is therefore making a temporary and controlled halt of production, which hitherto has been six cars per day, and is reducing agency staff."
The famous Trollhattan production plant in south Sweden will halt production for four weeks starting today (May 22), according to NEVS spokesman Mikael Ostlund.
There are high expectations for the unbuilt electric version of the Saab vehicle to try reviving the brand. NEVS feels the vehicle should sell well in China, its home market, where the government is promoting clean automotive technology, according to Reuters.
"Qingbo hasn't terminated the deal, they say they will complete it. But we haven't received the financing they had agreed with our main owner," Ostlund said.
NEVS expects the battery version of the vehicle to compete with vehicles sold by companies like Ford, Volkswagen, and BMW.
NEVS also announced it was working on a co-operational deal with an automaker for the development of a new platform for new vehicles.
The company is also in discussions with another automaker about purchasing a stake in NEVS, according to Reuters.
"We are now seeking bridge solutions until sometime in June when we expect to have the result of the discussions with the intended partners," Ostlund said.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
